Problem Statement -
User is at the center of every business. Identity services are carried out in silos which involves huge amount of rework and data management. KYC process has to be done every time user wants a service from a new institution.
The owner of the data i.e. user has no control over what is being shared with whom. Financial institutions spend millions of dollars on compliance with KYC. Above of all, non-repudiation and end consumer data security are major concerns. This may lead to identity theft, fraud or money laundering.
Solution -
We propose a Blockchain based Identity solution through distributed ledgers, smart contracts, with public key infrastructure, consensus and privacy features that can help to standardize identity management processes, reducing cost, time and complexity.
A blockchain based ID will perform the necessary non-repudiation and proof of verification to meet the KYC requirements for the active wallets across borders.
· The Government act as the authoritative entity to assign identities like Aadhar cards, PAN card, Passport etc. While assignment is being done, a track of user IDs are being kept. Once the identities (for e.g. Aadhar, pan card, voter id) are assigned, it is assumed that the KYC is being approved by the Government / or government certified authorities then the user is registered as KYC approved on the Blockchain.
· For simplicity of PoC, we are considering Aadhar as validation for KYC.
· There is separate interface for all the parties involved like government, government authorities, users/citizens
· User has control over its data. User controls the permission via smart contracts
· User can share the data with any service inquisitor by sharing the public key
· Instant KYC can be done just by scanning the QR code
· All the access rights and transactions are registered on the Blockchain
**Architecture **
**Overall Process Flow **
Find below the application architecture used for the development of PoC
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Features of Blockchain Based KYC model-
- One time KYC process
- Global/Local Identity management based on smart contracts
- Reduced fraud, money laundering, tax evasion etc.
- Instant KYC verification
- User has complete control of his/her details
- Underlying Blockchain provides auditability, authenticity & immutability
- paperless KYC process
- Hassle free user experience ( secure QR code access)
- Low CAPEX as it leverages the existing ID management systems
- Mobile app enabled
** Application Screens (Not included in video)
User Welcome Page
Information Form
Aaadhar Demographic Authentication using API
User verification Successful
Demo Videos are live here
Overall Demo Video
**InstaKYC - QR Code Scanner