Enhancing KYC Verification Efficiency with Ethereum Blockchain Optimization

Abstract

with the current advances in digitalization, people use their personal identity documents on a daily basis, which are shared with third parties without prior authorization and maintained in a number of random places. Government organizations, banks, credit agencies, and other financial institutions maintain such identity information in their databases. The presence of such sensitive information in several places increases the likelihood of vulnerability. For a long time, the financial industry has been looking for solution to such difficulties, and one feasible alternative is blockchain. Completing a single KYC verification process and storing it on the blockchain eliminates the frequent KYC checks that current banks must carry out. As immutability and inalterability are inherent features of blockchain, data queries cannot be modified fraudulently. Blockchain’s decentralized design enables the collection of data from different authoritative service providers into a single immutable, safe, and verified database. To enable quick and completely secure identity verification, the Blockchain KYC solution uses a public, secure digital ledger.