Over the years, we have experienced challenges verifying ourselves in various organizations. For example, we go through KYC verification in Bank A when opening an account, and we do a fresh KYC verification in Bank B when we want to open another account with them.
We are subjected to a fresh KYC verification with each centralized exchange we want to use.
This goes on to show how the current KYC system is deficient and puts users at a greater risk of a data breach. When any of the organizations with our personal information are compromised, we stand at a risk of being a cyber-attack target.
But what if there is a way to improve the current KYC system? Where a user verifies his identity with a trusted provider and gets a credential showing that his identity has been verified, and reuses this credential across various Organizations. The organizations won't see his personal information but will see that his identity has been verified by a trusted provider.
Sounds too technical? Well, knowledge of zero Knowledge proof of validity will come a long way in understanding this.
ZKP is a cryptographic technique that allows a party (the prover) to prove the validity of a statement to another party (the verifier) without revealing any additional information beyond the validity of the statement itself.
Coming to reusable KYC, ZKP can be used to establish proof that can be shared with other service providers to establish trust and meet KYC requirements without revealing the underlying personal information.
For example, a customer can generate a credential from a trusted provider that proves they are over a certain age without revealing their exact date of birth.
Reusable KYC offers the following advantages; Improved data security, enhanced customer experience during verification, and time and cost savings. To crown it all, the user still retains control of his data and he decides who gets access to them.
Now you know about reusable KYC. What are your thoughts on it? Would you be kind to share with friends and family so that they will grow with the current trend?
