Blockchain enabled KYC solution is next game changer for any industry using its transparency, security and immutable nature – it helps to reduce time, paper work, and human workforce engagement for back office jobs – ultimately it is a cost saving process
Data is available on a decentralized network and it can be accessed by third parties after permission has been given. It eliminates the chance of unauthorized access which provides greater control over data for each individuals.
Policy standardization is possible by making use of Smart Contracts. The Workflow is routed into Smart Contracts which is standardized by the organization/consortium. It also helps to increase the effectiveness of the KYC system and reduces manual mistakes.
The Blockchain enabled KYC solution helps to create a ledger which can allow the data to be stored on a single universal accessible platform where data can be accessed by third parties with authorization. It helps to improve the data governance and as a result the organization/consortium can get early warnings about compliance failures of any parties.
Every state of each transaction in blockchain is immutable, it creates trust between parties involved in the KYC process. The trusted data is stored in the blockchain which removes the need for cross-checking. The immutability of blockchain states helps to prevent any chance of fraudulent transactions
With the shared ledger, the process of KYC can be easily monitored by all parties. If there is any change to a party’s data, immediately it will be broadcast to the parties in the network. Direct access of shared ledgers helps the organization to save the usually time-intensive process to identify scams.
DreamzChain has developed a Proof of Concept on KYC without a consortium basis. The application is developed in such a manner where everything is customizable as per requirement.
Here users (like customer, attester and bank) will register in the DreamzChain KYC application. Based on supplied information DreamzChain authority will add them as a node in the system and email the user about the user id. Later users can login to the system with a user id.
If the user is a customer then he/she can initiate KYC verification processes after uploading the related documents and select the verified attester available within the system.
Based on the information and supported documents sent by the customer,the attester can verify and reject the status. If the information is rejected by the attester then the customer can again re-send the rectified information to the attester for verification.