Know Your Customer (KYC) is an important part of a business model because the process helps you identify and verify the identity of your customers/clients. You may require this for several reasons, however, the system has problems. Privacy is one thing a lot of people do not want to let go, as intrusions can be really disturbing, however, it has been discovered that a lot of KYC processes have made it seem like the companies/businesses were intruding on their clients’/customers’ privacy.
Different clients/customers have reported the KYC process as being inconsistent, too long, without standard, and intrusive on privacy and security. Furthermore, there is the problem of anti-money laundering regulations.
On a different scale, more problems have been discovered within the KYC itself, and these problems are detrimental to the process, as they negate the ideology behind the process. While customers/clients have their views about the problems of KYC, analysts and researchers have attributed the KYC problems to untrue assumptions where anonymity is believed to prevail over the Anti-Money Laundering (AML) and Counter-terrorist Financing (CTF) regulation, also, there is the problem of allocating low priority to compliance because it is being thought of as a cost center.
Another problem is that there is a lackadaisical approach to the process because businesses do not have the resources both financial and human to create functional and effective KYC processes.
The blockchain technology which is vast in its usage can be used effectively to deal with these issues, with the help of Smart Contracts and Artificial Intelligence (A.I.), the KYC process can be made as efficient as it should be without being a burden on the business and customers/clients.
Traceto Know Your Customer (KYC) Network
Traceto is a digital identity application that is decentralized and used for simplifying procedures that apply to KYC. There will be a development of a network that will essentially be based on their KYC framework and will be created such that it will be able to gratify regulations used in the real world.
As part of its plans to eliminate the incessant problems plaguing KYC, the system will provide regulators with demonstrable processes as a function of its due diligence. KYC aims to make regulatory inclusion known by bringing together the revolutionary technologies of Smart Contracts and Artificial Intelligence under one system.
Functional KYC Service
This virtual Know Your Customer (KYC) platform will ensure that the decentralized ecosystem complies with stipulated KYC regulations. The application of the blockchain technology to this system will ensure that there are no intermediaries or 3rd parties to interfere with the KYC process, and the KYC network will be able to give management, control, and ownership of KYC processes to the ecosystem.
Users will be rewarded with incentives, to promote symbolism among the users, hence, guaranteeing privacy while being compliant with the requirements of the regulations. For the Smart Contracts to function, there will be an issuance of an ERC-20 powered token (T2T).