Blockchain is no rocket science but a decentralized technology that is making record keeping transparent and easily accessible for every sector possible. It is an immutable distributed ledger shared in the public domain. Every participant interacts using a public-private cryptographic key combination, due to these cryptographic keys the details of the transaction remains private. However the block is added to a public
In this corrupt world it is necessary to gather complete information about your employees and people working under you. KYC is the tool specially designed for this purpose it is abbreviated for “Know Your Customer” though the traditional KYC method is a time taking process still it holds the utmost importance. KYC on Blockchain is like adding a cherry on top of the cake since it has the potential to change the way the banks undertake KYC. It seems to be just the application that businesses required to get rid of the rigorous process of on-boarding a customer and avoiding money laundering. Money laundering is one of the major issues faced by the banking institutions and other companies. With KYC process being enormously time consuming, businesses wanted to find ways that can help them in keeping up with the AML regulations.
Blockchain technology’s security is a reason blockchain is renowned globally.
KYC process can benefit a lot from blockchain. With distributed ledgers, a person’s KYC process can be paced up as everyone existing on the blockchain network can affirm the new entrant’s identity. The information that has been submitted by the user is available for everyone on the network to view because of blockchain’s feature of transparency.More specifically, all of the information related to a client would become available to organizations with the appropriate permissions via a distributed database that would be considered a single source of “truth.” With blockchain, end-to-end tracing and tracking of transaction and client activity is possible.And since every department would have access to all client background information and all of their account activity the KYC process would be more efficient.