We live in a time where data breaches are becoming a norm in cyberscape despite being millions being spent on data security. International organizations and businesses have been a victim of several hacking attacks leading to loss of crucial client data that in turn shows up in the black market of data mines. Online Identity thefts, financial information frauds, and other online transaction scams are also on the rise thanks to lacklustre security measures adopted by global organizations handling sensitive customer information over the internet.
Is blockchain the solution?
Blockchain has come up as an important alternative to safeguard user rights and confidential customer information. It provides secure access to resources, platforms, and online services. But the anonymity attached with blockchain creates a problem of its own. It means that even the people running a particular venture using blockchain technology are slightly in dark regarding the exact identity of a potential user, let alone the community of users who are using that blockchain based technology.
KYC supported Blockchains
KYC verification software is the ideal companion of blockchain platforms in the modern digital age. It ensures that reliable credentials are collected from users before they are provided access to a secured platform. Official documents used to perform KYC verification leave little room for online fraud or identity theft scenarios. Smarter and quicker performing KYC verification applications are available that can identify any false positive or red flag attempts to use doctored credentials for the registration process.
Why Blockchain needs KYC Verification?
Without an effective KYC software, blockchain technology and platforms hosted on the blockchain has little to no chance of earning legitimacy in the eyes of future customers. It can cause an unwanted risk to customer onboarding process as people will be unsure about the security of their data and any personal details that they might have to provide on the platform.
It is important to remember the taboo status attached with Blockchain technology, caused by the way cryptocurrencies have been operated in past few years. In order for products to be successful on blockchain technology, KYC verification must be integrated into blockchain based projects
Regulatory compliance
Several countries have introduced compliance regulations that require businesses to perform KYC verification for the customer onboarding process. This ensures the data rights of the overall user community and enables regulators to keep a check on user activity on such platforms. A Blockchain based technology that has a tech-savvy KYC verification software integrated into it, can go a long way to safeguard that particular venture from strict regulatory scrutiny in future.
Blockchain technology is being hailed as the way of the future for businesses and online platforms. But unless blockchain technology is mixed up with KYC verification, there is going to reluctance on part of the general populace to adopt new technologies, no matter how user-friendly they are. Businesses cannot blame users to be sceptical as they have been burnt a lot of times by corporate disregard for user rights and user data. There are several KYC verification software like Shufti Pro that is already being used by blockchain based ventures for a thorough vetting of user credentials.
