FSociety

Submission for KJSCE Hackathon 2018 [ADHAAR ID]

KYChain

• Smart alternative to traditional KYC modules
• Blockchain as a Service (BaaS)

Motivation

• The objectives of KYC guidelines is to prevent the data from banks or any such important organizations from being used, intentionally or unintentionally, by criminal elements for any purposes.
• Essentially, the KYC process involves collecting, tracking and storing huge amounts of data , so that it may be reported to regulatory agencies in a timely fashion.
• Considering the service for banks, with the world virtually becoming boundary-free, cross-border banking transactions have grown by leaps and bounds. So has the need to ensure adequate security measure are in place.
• In such a sitituion the Blockchain acts as an immutable distributed ledger shared in the public domain. Every participant interacts with the blockchain using a public-private cryptographic key combination.

Tech/ Framework Used

Blockchain, Ethereum, Solidity, Smart Contract, React JS, Node JS

Features

• Whenever a user enters in the ecosystem , they will upload Government authorized documents for Proof of Identity and Proof of Address. Using OCR, the relevant information from the documents will be extracted. This information will be crosschecked by the user before it can be finally uploaded to the decentralized database system ‘Blockchain’.

• Whenever a new user is to be appended, the Blockchain ledger could enable encrypted updates to the ledger. These updates can be accessed by other entities in real time as and when required.

• Existing users login using login id which would be their ‘Public Key’ for the Blockchain and the password would be generated by a pseudo-random algorithm using this public key. Since a user is assigned a twelve-word mnemonic when creating an account, a user that wishes to be a part of this blockchain can do so only once, using only one of the accounts generated by this 12 word mnemonic.

• The organizations get the address of the user’s block, where they are given the permissions to access their data. If the user is common among multiple such organizations, permissions will be given to each of the said organization to prevent duplication of data.

Advantages

• Data alterations can be tracked and monitored — chances of misuse and fraud are reduced.

• Since all data is stored in a homogeneous blockchain, resulting better governance and use of data would help banks detect fraud at an earlier stage.

• Direct access to the KYC data could save huge amount of time for institutions.

• The hassle of disparity in specifications can thus be eliminated.

Future Prospects:

• BlockChain Based Voting System
  Use face recognition and public key of the user to recognize him before authenticating them to vote and store their vote accordingly in the decentralized system. It will help to achieve highest level of security with complete transparency therby allowing votes to be followed, counted, and correlated by many different sources while still maintaining the privacy of the voters due to the anonymous transactions along the blockchain.