Blockchain Enabled KYC Solutions using Hyperledge Fabric

Blockchain as one of the most well-known examples of Distributed Ledger Technology, has been hailed across the industry as the key to future success within the financial services industry. Blockchain is a platform that supports multiple use cases within Financial Services, and it has the ability to transform a number of processes, including peer-to-peer payments, trade settlements and supply chain tracking. All these use cases depend on one thing that's the Identification and Verification of participant or users. That is called as Know Your Customer(KYC). Verification of User is one of the basic thing that establishes trust between the participants before making any of the transactions. Ever-increasing anti-money laundering (AML) regulations, coupled with other data protection regulations have led many financial institutions to implement lengthy, expensive processes in order to remain compliant. This paper provides solution to this problem using Hyperledger Fabric, which is framework under blockchain technology, provides some key features like permissioned network, confidentiality of Data, and Programmable. These features establish trust, transparency and accountability.

I. Introduction

Blockchain originated from the idea of Bitcoin. So, it is important to understand what Bitcoin is. The Bitcoin system is based on peer-to-peer network, where transactions carried between users directly, without an intermediary. These transactions are verified by nodes in network and recorded in a public distributed ledger called a Blockchain. Blockchain can be called the spine of the entire crypto-currency system. Blockchain technology makes sure of security and anonymity of the participants involved. Blockchain is also called as an open and distributed or shared ledger, which records transactions between two participants in a verifiable and non-editable manner.