Blockchain use case: KYC and AML
Blockchain use case KYC and AML
Blockchain use case :-
Blockchain use case main technological aspects and dealing principles that permits creating the assessment of the given use cases. For every use case several firms or organisations area unit else that area units applying or testing the given answer.
The goal of the paper is to produce a obscure outline of presently existing blockchain use cases within the data technology business.
Several use cases are examined in already existing scientific papers, master theses, business white papers and blogs of business specialists.
The paper conjointly provides short introduction into a practicability analysis of specific blockchain use case.
KYC – (Know your customer)
The KYC each client of the bank to prove the truthfulness of their existence by submitting the proof of identity and proof of address.
The KYC process of storing huge amounts of data, tracking and involves collecting.
AML – ( Anti Money Laundering )
It is a term used mainly the money and legal industries to explain the legal controls that need money establishments and different regulated entities to stop detect and report hiding activities.
KYC and AML uses :-
blockchain technology is a distributed database that differs from the relational database that dominating the current market transparency security and efficiency are being improved much in this technology.
KYC and AML are potential blockchain use cases .this technology helps to reduce KYC costs and AML risks because of its cross institution client verification capability effectiveness of monetering and analysing data .this helps lots for financial institutions in the form time and human resource.
Its trust network where by customers data would only be accessed by trusted sources. If we compare with current model blockchain technology will give more and more security to customers. Once a customer’s data is created on the blockchain network and cryptographic keys are created it’s be more secure this technology is more safer for customers anti money laundering risks were very low.
Also this technology helps a lot of financial institutes by reducing multiple KYC and AML processes or they have the option to access a distributed data base that would provide them the final results of various
Processes were doing in current model. Information related to a client is available to organization with the appropriate permission through a distributed data base that would be considered a single source of truth in this once client data base is verified and stored in the distributed data base it can’t be manipulated which only can be updated so this helps financial institutes to know your customer ( KYC ) with reliable information. The fundamented decentralization of cryptocurrency opens it up to the risk of money laundering . in order to provent this hurdle cryptocurrency companies efforts to know your customer(KYC) are more important than ever.
As records were stored in decentralised using multipsignature cryptography blockchain will always reduces the risk of single, central points of failure from fraud, hacking, and other all kind of cyber related crimes. To conclude with KYC and AML were the most blockchain use cases.
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