Distributed ledger know-how might help the banking trade to enhance buyer verification effectivity
HashCash disclosed in a latest launch that it is going to be collaborating with a UAE based mostly international financial institution to enhance its identification verification system via the mixing of “blockchain digital identity”.
HashCash CEO, Raj Chowdhury, emphasises the significance of financial institution oversight and understanding their purchasers.
“Accurate identification of an individual is central to banking activities which makes them the chief arbiter of people’s identities. Having a bank account is essential for buying property, securing a loan, and getting a job.”
Though the discharge didn’t disclose the financial institution concerned with the collaboration, the discharge mentioned it’s going to implement a HashCash blockchain-powered digital identification verification system.
How will blockchain make it higher?
Blockchain is a decentralised, distributed ledger know-how. Any data uploaded to the blockchain shall be cryptographically locked and despatched to each entity collaborating within the blockchain.
The ledgers exist on a community of computer systems and act as backups – in a situation the place an unauthorised particular person tries to change knowledge on the blockchain, it’s going to robotically right itself by mirroring the present copies.
In idea, by importing an individual’s identification to the blockchain, the data is immutable.
Blockchain additionally improves upon the setbacks of the normal identification course of. Using sensible contracts, the identification system stays autonomous, avoiding any human error or expensive middlemen.
“The existing manual processes make identification time-consuming and susceptible to errors. HashCash aims to streamline the process by helping the partner bank create digital identities for the customers over a decentralized network, where the customer data will be recorded on an immutable ledger, eliminating any chance of identity theft and forgery.”
Demand for brand spanking new verification methods is excessive
HashCash “blockchain digital identity” is very helpful in banking processes, similar to know your buyer (KYC) checks, that are important procedures for the fashionable banking trade.
Various international locations are entertaining the thought of a blockchain-based KYC system, similar to Australia, the Spanish banking consortium, Sri Lanka, and particularly the UAE the place the system is already stay.
HashCash merchandise might probably help and encourage the worldwide adoption of blockchain.
The firm’s launch summed up its objectives:
“The integration of blockchain-based digital identity verification infrastructure will streamline critical processes like customer onboarding, loan application, and processing, usual KYC/AML for account opening, and more.”