A New Ecosystem for Digital Identity Verification Using Blockchain
Shubham Babu Gupta, Kevin Shah, Aditya Hirapara, Deep Mistry, Ankur O. Bang, Udai Pratap Rao · Auerbach Publications eBooks · 2021
Digital data collection and sharing provide tremendous opportunities for fraud offenders through the digitalization of infrastructure. Identity theft is one such fraud which has created a need for new security approaches. Modern technologies such as blockchain can provide solutions to many problems with a centralized identification system. In addition, it improves data transparency, facilitates the self-execution of Know Your Customer (KYC), improves efficiency, and can improve customer experience. In this chapter, we propose a decentralized model to ensure data security and privacy and provide a collaborative ecosystem design for single KYC verification among different service providers. More specifically, we propose a first of its kind decentralized data model alongside blockchain technology to ensure security against identity theft. Thus, our model solves repetitive and costly independent KYC processes for different service providers. The design increases the users’ ease by enabling them to control their data and remove the need to verify the same details repeatedly.