Optimised KYC Blockchain System

Abstract

Know your customer or simply KYC is the process of validating and verifying the identity of its users and examining potential risks of illegal intentions for the business relationship. A few problems with the existing manual KYC process are that it is less secure, time consuming and costly. With the advent of Blockchain technology, its properties such as immutability, security, decentralization make them a good solution to such problems. While commercial solutions like “kyc-chain.com”, “KYC.legal” right to enable blockchain-based KYC verification, it provides a method for documents to be validated by a trusted participant in the network. In this work, Ethereum based Optimized KYC Blockchain system using symmetric AES encryption and LZ based compression mechanism is proposed. This system ensures transparency by distributed ledger, secured by cryptography, efficient by compression algorithm and overall optimized by blockchain features.