Blockchain based reusable KYC

Blockchain

Cheqd CEO Fraser Edward explained how blockchain-based reusable KYC would become the “breakthrough” for security in Web3.

The rationale is that it would improve the user experience while also unlocking new use cases.

“Blockchain-based reusable KYC is particularly valuable in Web3”: Word from Fraser Edward

In an interview with Bitcoin.com, Fraser EdwardCEO and co-founder of public permissionless network Cheqd, talked about blockchain based reusable KYC and described it as “particularly valuable in Web3.”

In particular, Edward spoke about how the mandatory process of identifying and verifying a customer’s identity when opening an account, KYC (or know your customer)would become more efficient and reusable if it was based on blockchain.

In this regard, here are the exact words of Cheqd’s CEO:

“By going through the KYC process once obtaining reusable credentials, users can use those credentials multiple times across different service providers. Implementing such a system would significantly speed up onboarding processes and increase user satisfaction, especially compared to the current approach.

It also allows people to use parts of those digital credentials for other purposes, such as proving they are over a certain age to buy alcohol, tobacco or lottery tickets, for example, without disclosing everything in the credentials.”

Edward also talks about the European Commission’s survey which showed that 21% of respondents have switched markets or exchanges in the past 5 years, while a lower percentage have switched current accounts or spot investment products.

Not only that, many of the financial services companies outsource their KYC requirements to third party vendors such as Onfido, Jumio or Trulioo who perform the checks and provide the results.

This means every time users must repeatedly provide their KYC information directly to the platforms they modify or to the third-party vendors who handle this component.

This is where a blockchain based reusable KYC would be streamline the entire traditional processlike unlock new use cases.

Reusable blockchain-based KYC and the Trusted Data Market with Cheqd

In addition to speaking generally about the benefits of blockchain-based reusable KYC, Edward also spoke about the Trusted Data Market, Cheqd’s market is infrastructure.

Essentially, Edward explained how in this target=”_blank” rel=”noreferrer noopener”>DeFi.

And so such data can include on-chain transaction history, signals and social proof such as DAO contribution history, ownership of real world assets and even Web2 credit score and borrower KYC data.

In this scenario, the lender (the verifier of the trusted data) can use Cheqd’s payment infrastructure to pay the publisher of the trusted data (such as a consumer credit agency) in a privacy protection mechanism.

with Cheqd, the transaction (the loan) remains unreliablebut the relationship between the borrower and the lender has signals that support trustenabling a more efficient crypto lending market while preserving what makes crypto lending unique.

Cheqd: nominated for startup of the year

Looking at Cheqd’s official Twitter profile, the startup continues its expansion and communicates its presence at various conferences.

Not only that, HackerNoon’s celebrated technology open community has nominated Cheqd as startup of the year.

As the company tries to make itself known, its CHEQ token is trading at $0.054 at the time of writing. A 10% dump from the price a week ago of $0.060.