Know your Customer (KYC) process is not difficult to understand...each country has its own way to ensure verification of a person by regulated entities, so they can keep track of money laundering etc. You submit your government picture ID, maybe a selfie holding the ID if it is done online, some personal data about yourself, maybe some bank statements or utility bills to prove you live where you say.
But the problem is, each place or app or website you use, they ask for the same information every time. Wouldn't it be better to do it once and then that's it? Anyone else can just check you are real because someone reputable has already checked you out - they do not have to go through the same process. Easy for you and easy for the company trying to verify that it is you. Not to mention that this will cut down on the chances of identity theft if your personal data is in so many places.
Using the Blockchain as a distributed ledger this becomes much easier to do. Here is how we do it at Tagcash using the TAG Blockchain Platform.
On the chain we have a key-value stream of data that is posted by regulated entities that are themselves published on the same chain. The key value contains a fingerprint of data about you and your KYC status. That fingerprint is a hash of your full name, Date of Birth and email or phone number. It is a hash, so it is only available to someone who has that same information, and who wants to check your status. And all he would see is that you have a status that says KYC1, KYC2 or KYC3.
Access to the KYC Blockchain is limited so that only regulated partners can browse data - anyone else must go through an app or site, and they must know your exact details to be able to see your status. And there is a small fee to do that, so it is unlikely to be abused. Access is granted for each Publisher address so that this can be integrated into the KYC Process of their own system.
Other than regulated entities, when a company does a search for someone, then that person is notified via email with info about who did the search and when. The search will also be recorded on the chain, which also makes it easier to track payments to the KYC Publishers.
As we grow the KYC system, other similar products in other countries will be doing the same, and we are open to query each other's data on a reciprocal basis.
It is a simple system and we hope that it will be implemented by many companies, saving time and money and protecting your information while still making it easy to verify you.
In the chain explorer, which is limited to partners only to view, you can see the transaction that has been created by a KYC Publisher into the KYC Stream - the Key is the hash of the users name, DOB and email, and the Data is a hex value of the text "KYC1"