As we can see, there are way too many challenges faced by institution involved in KYC based process. It means that, it’s time to introduce the new disruptive technology to impact the process and this is where Belrium – KYC Based Blockchain comes into picture.
With these new solutions, institutions who need KYC based process, will be able to regain control over their time and cost, they will be able to limit their exposure to potential KYC fraud and will be empowered to achieve higher customer retention.
Customers will be also benefit from it, they have to do less paperwork for KYC. With centralize processes it’s easy for customers to keep their KYC updated.
There are currently hundreds of proprietary traditional KYC system used by institutions however, mostly these are developed and maintain internally. There is no such KYC system in market which can handle the KYC process centrally. These systems have limitations and to many restrictions for use. They bring unclear process which can be misinterpreted.
Furthermore, there is plenty of room for KYC fraud left by these networks and as a result, institutions are exposed to humongous losses.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) launched the SWIFT KYC Registry in December 2014. It is open only for the banking systems. More than 2000 banks have already enrolled with it.
The problem with SWIFT KYC registry is that it can be only used by banking institutions not by other institution which rely on KYC process.
The Belrium –KYC based Blockchain is based on DPOS algorithm, a blockchain based distributed computing platform. DPOS algorithm allows smart contracts i.e. distributed computer programs that can facilitate on-line contractual agreements in a cryptographically secure manner. DPOS algorithm is open-source package written in NodeJS and adopted by many institutions for Blockchain development.
The smart contracts enables the Belrium-KYC based Blockchain as a truly transparent and decentralised KYC serving exchange. Smart contracts are essentially computer programs that run on a distributed public ledger, therefore ensuring their result is always consistent, transparent and cannot be manipulated.
In Belrium we can limit the mining node as per our requirement. This technology also ensures that Belrium removes the need for intermediaries and having a central authority to trust – through smart contracts, the complex process of performing KYC, tracking and facilitating payment can be described in the contract itself, while still running on the distributed Belrium network and taking advantage of the blockchain qualities.
Another core component of DPOS algorithm is storage. Since the blockchain has high storage costs, DPOS algorithm adopts IPFS to save KYC related information.
IPFS is an open source project developed since 2014 by Protocol Labs with help from the open source community. IPFS is also decentralized and distributed, but it’s built especially for storing and sharing files.
In architectural terms, Belrium is designed in a way that is compatible with most of the existing KYC systems, which allows for easy adoption by institutions which are using KYC based process.