KYC Verification using Blockchain

Abstract

Know Your Customer (KYC) verification is an essential regulatory procedure in financial services to prevent fraud, money laundering and other financial crimes. Conventional approaches are centralized, redundant across institutions, and prone to data breaches. This paper presents a decentralized framework that combines blockchain smart contracts and InterPlanetary File System (IPFS) for immutably recording KYC document fingerprints while storing actual documents off-chain. We describe the system architecture, implementation choices, security and privacy considerations, and evaluation metrics. The paper includes a comparison between traditional and blockchainenabled KYC systems and discusses future directions such as Decentralized Identifiers (DIDs) and Zero-Knowledge Proofs(ZKPs).