Know Your Customer: Shaping New Blockchain Companies
Blockchain companies are working towards empowering users and giving them autonomy that they can’t find in centralized systems. Rewarding users is one of the critical elements of enabling users within the blockchain system. Every company has tried to reward their users financially. Credits given within the platform hold financial value. These rewards can be exchanged for money or can be used within a particular blockchain. The idea behind the reward system is to give users a strong reason to use blockchain technology.
However, there are a few obstacles for users to receive benefits from the rewards fully. Firstly, it is essential for businesses to ensure that they are compliant with know your customer (KYC) and Anti Money laundering (AML) regulations. The companies need to be compliant with these regulations to ensure that the criminal activity is prevented, and transactions can be performed securely. Financial institutions, merchants, and service providers must be compliant with these regulations to run in any industry.
When companies follow these rules, the implementation of these standards causes the cost to increase and leads to significant inconvenience to the user. For users of regulated blockchain to use a company’s services, they need to fulfill the KYC requirement which is very time-consuming. The solution to this problem is identity verification which deals with practical solutions in dealing with KYC.
Blockchain companies are working on user-focused, user-controlled mobile identity application which is designed for smooth and immediate access to regulated services. They aim to streamline identity verification services by solving the current KYC problem. Users will have full control over their data even after storing their identities on the platform. The process of complying with the regulations will become easier for both the companies and the users because such platforms will provide reliable and cost-effective KYC and AML services.
A blockchain-based approach can help companies to take advantage of next-level technologies through API-based verification solutions. It will be an easy-to-use KYC and verification without building a solution from scratch. Latest and advanced blockchain solutions are gearing towards a seamlessly functioning blockchain ecosystem. Secure verification will encourage the users to participate in the ecosystem knowing that their information is safe and secure.