A Blockchain-Based Self-Sovereign Identity System for KYC Processes

The primary goal of the Know Your Customer (KYC) process is to deter financial crimes, such as money laundering, by ensuring that banks can accurately identify and understand their customers. This not only aids in crime prevention but also helps banks in offering tailored services and in executing effective risk management. Traditional KYC verification methods, however, tend to be complex and costly. In response to these challenges, this paper introduces an innovative KYC system designed to efficiently comply with regulatory standards, thereby minimizing the risk of non-compliance penalties. This novel system incorporates Self-Sovereign Identity (SSI) technology, granting individuals unprecedented control over their personal KYC information. We have developed and tested this system using actual user scenarios to assess its performance. The findings from our evaluation indicate that this KYC system delivers superior performance across various key metrics, showcasing its potential to transform the current KYC landscape by making the process more user-centric and cost-effective.