IMPLEMENTATION OF CONSORTIUM BLOCKCHAIN FOR DECENTRALIZED KYC SHARING

Abstract

Know Your Customer (KYC) process that is followed by the Financial Institutions (FIs) at present is highly inefficient and inconvenient for both FIs and customers. This process requires verification of customer’s identity documents independently by the businesses leading to high costs as well as wastage of resources. This project provides an efficient solution based on the Blockchain technology. The submission details of customers are collected only once for the verification process, irrespective of the number of financial institutions they register. The verified document is then shared with the organizations that require the information based on the customer’s approval. It leads to an efficient KYC process reducing costs and resources. This system uses private distributed file storage to store the identity documents and consortium blockchain technology is used to record and manage the KYC transactions ensuring security and transparency. The financial institutions act as the full nodes of the blockchain and the synchronization of blocks takes place through the P2P network.