The Blockchain is usually considered synonyms with Cryptocurrency, although its applicability is regarded as restricted to monetary transactions. And, Trade Finance is regarded as the biggest prospect for exactly the same. But, I am certain that most of us know that Blockchain has it more! Even though it’s an easy idea, its consequences are immense.
To comprehend this further, let us take the case of the KYC procedure. Virtually all organisations invest countless Tele and Field Verification to find the KYC right. But this procedure can readily be transformed into a blockchain. Therefore, the idea of KYC is going to be revolutionised with the usage of the blockchain service. Using blockchain, the client will have the ability to upload the necessary files due to their identity and speech to a central website and the hash calculations will be created for downloading it.Also read: Top 15 Frequently asked Questions on Blockchain Technology
The lender which wishes to onboard, this client will then send a petition to the central nodal agency for those documents. Together with the files, the whole block of verifications and validations will be transmitted to the lender. With every validation, in numerous domain names and bureaus, the series will get more powerful and authentication dealt with.
The alternative will remove problems with the current approach to KYC and Supply the next stack of attributes –
- An immutable and protected database for preserving integrity, availability and accountability.
- Permission-based accessibility to data, that will allow information to be accessible only to licensed organizations.
- Reduced price of communicating with automation.
- Streamlined procedures allowing clients to consign more rapidly into banks, businesses etc..
Therefore, Blockchain Development holds enormous potential for disturbance. In the next several years, it may be employed to make new business models, decrease risks and again create compliance. But, large-scale adoption will take time since the technology is still being analyzed and use cases are being implemented slowly, on a tiny scale. The blockchain disturbance is still underway, and it’s incumbent on us to grab it.