Article
DECENTRALIZED KYC FRAMEWORK FOR EFFICIENT CREDIT ALLOCATION IN BANKING
In the financial industry, banks' adoption of the Know Your Customer strategy improves these businesses' operational effectiveness. The information obtained from the customer throughout the KYC process may be used to prevent potential money laundering, fraud, and other illegal endeavors. Most financial organizations have their own KYC processes in place. A centralized system also makes it possible for several financial institutions to work together and carry out operations. In addition to these two situations, a blockchain-based system can also be used to carry out KYC procedures. The decentralized network of the blockchain will be extremely transparent, allowing all pertinent stakeholders to validate and verify customer data in real-time. Furthermore, the blockchain's privacy and immutability guarantee that customer data is safe and unchangeable, eliminating the possibility of data breaches. By doing away with needless paperwork and data submissions, based on a KYC can further enhance the customer experience. This paper suggests a powered by blockchain KYC method to gather limit, risk, and collateral information from customers after banks approve transactions. Financial institutions can read and write financial data on the blockchain network thanks to the Ethereum-based method. This KYC approach creates an open, flexible, and quick framework between financial institutions. Solutions for the Sybil attack, one of the most serious issues in these networks, are also covered
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