KYC using Smart Contract over Blockchain

Abstract

Know Your Customer (KYC) is a requirement for financial institutions to use identity, qualification and risk to identify customers when establishing a banking relationship. With the focus on security, the KYC process has become difficult and costly to complete for any customer. In this article, we propose a convenient, instant, secure and transparent banking system KYC certification platform through Inter Planetary File System (IPFS) and block-chain technology. The system allows customers to open an account at any bank, complete the KYC process there, generate hashes using the IPFS network, and distribute them to other banks using the legacy urine of block-chain technology. Using a private key, all banks/financial institutions can use the IPFS network to securely store and store customer information (e.g. KYC) if the customer wants to open another account with that bank/financial institution. Additionally, leveraging block-chain technology ensures immutability and transparency of KYC information, thereby increasing security and reducing the risk of fraud or misuse of information. Storing hashed KYC data on the IPFS network ensures that important customer data remains transparent and accessible only to authorized users, thus maintaining confidentiality and compliance with data protection laws. In addition, the processes that this new system can easily adjust will increase efficiency in the banking sector, allowing companies to allocate resources more efficiently and focus on providing better customer service. By sharing KYC credentials across multiple banks, customers benefit from a quicker and faster account opening process; When banks come voluntarily, it builds trust and reduces the risks associated with new customers. Overall, the integration of block-chain and IPFS technology into the KYC process should transform the banking industry by providing efficient, secure and transparent solutions that enable customer satisfaction and compliance.