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I am trying to create a KYC solution based on blockchain. I am trying to understand the benefits that blockchain can give over standard means of storage and documentation.

I do understand well what KYC means and how it is done without the usage of blockchain, but all I find when looking for the benefits of this latter is general and highly abstract of the technical specs of blockchain based platforms.

so my question is what is the benefit the ethereum platform can add to the existent KYC ways.

closed as primarily opinion-based by niksmac, Vignesh Karthikeyan, Henk, lungj, Ismael Jul 16 '18 at 21:10

Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.

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In my opinion Ethereum is not very good for KYC purposes. At least due to the following reasons:

1) Its pseudoanonymity. Even if some address completes a KYC process you only know those facts about the account, not necessarily about the person behind it (or maybe the address is used by multiple persons?)

2) Related to the previous point: a KYC requires information that does not exist on the blockchain, such as personal ID (passport for example). Even if you upload a picture of a passport to the blockchain, who knows if it's your passport. (Although this problem exists also in outside-the-chain KYC)

3) Secrecy. A KYC process is typically quite delicate process and its data should not be accessible to others. All data on the Ethereum blockchain is accessible to everyone.

  • I am glad you detailed those points. If I tell you that (2) the validity of uploaded documents was dealt with and (3)&(1) I will be using Quorum instead of regular ethereum, what is left is the real added value for blockchain and/or ethereum platform if it is used in a KYC solution, which what I am asking for. – Kaki Master Of Time Jul 16 '18 at 12:11
  • I'm really not familiar with Quorum, but let's say my points are not an issue. Then I'd say what is left is the general points for any blockchain: immutability and decentralization. And in the case of Ethereum, maybe you can integrate the KYC into an ICO or so - if KYC is passed you are automatically added to an ICO whitelist. – Lauri Peltonen Jul 16 '18 at 12:27
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    I get your point. So if I am going to build a KYC solution based on blockchain, Ethereum doesn't really add much other than the blockchain features ( immutability and decentralization). – Kaki Master Of Time Jul 16 '18 at 12:33

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