THELOGICALINDIAN - KYC regulations assume to be a affliction in the rear for best enterprises absorbed in exploring the blockchain area But there is a abeyant band-aid on the border in the anatomy of Oraclize which is alive ona way to articulation reallife identities to Ethereum wallet addresses
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KYC: A Balancing Act in a Trustless World
Whenever somebody talks about KYC [Know-your-customer] protocols, it is not adamantine to see a centralized account or academy accession user abstracts and autumn it about safely. That aftermost allotment is a affair of substantial debate in contempo times, however, as the cardinal of databases breaches and abstracts leaks keeps growing every year.
Decentralizing the KYC agreement will be one of the better challenges of the accomplished few years. But now the technology seems to be communicable up. Accountability of all of the calm abstracts is at the top of the antecedence list, and some Ethereum enthusiasts over at Oraclize (Oraclize.it) have appear up with a abstraction that would absolutely articulation Ethereum wallet addresses to user identities.
However, there is a agenda to be fabricated here, as the plan does not circumduct about accession this advice and sending it to all parties authoritative use of the decentralized solution. The E-Estonia citizenship action is a cogent step* in this direction, as the digi-ID accessories acclimated can absolutely articulation a absolute character to an Ethereum address. Doing so requires the acceptance of RSA signatures, which are again absolute by an automatic acute contract. While the possibilities of this technology are around limitless, it would absolutely advice break the KYC affair in some way.
*[Note from the Author: RSA signature analysis through an Ethereum acute arrangement is not accessible aloof yet, but a affection authoritative this accessible is actuality discussed as we speak.]
Oraclize will ample in the missing pieces of the puzzle, as acceptance the signatures abandoned is not sufficient. A acute contract is bare to articulation Ethereum addresses to the absolute identity. Moreover, a way has to be created for blockage the affidavit adjoin the Certificate Revocation List to ensure the transmitted advice is accurate and legitimate.
Oraclize Has the Tools to Make it Happen
Filling in the missing pieces of the addle is one thing, but Oraclize has gone one footfall further. In fact, the aggregation claims they accept the accoutrement accessible to break the KYC botheration with a blockchain-based approach. The appropriate acute arrangement to articulation an character to an Ethereum wallet abode is available, and there is a web UI too. Moreover, the arrangement is currently deployed on the Ethereum Morden testnet, and supports RSA signature blockage in its accepted iteration.
But there is more, as Oraclize has a acute arrangement accessible to link agenda advice from the Estonian digi-ID Certificate Revocation List as well. However, there is one check to this abstraction for now back it requires a lot of gas to assassinate the arrangement for advantageous use. A aberration of this arrangement is currently beneath development, which aims to accomplish the action affordable.
Even admitting there is a point to be fabricated as to how the Estonian digi-ID abstraction was not advised for this accurate purpose, it is still an absorbing analysis case. This additionally goes to appearance how blockchain technology can accompany interoperability to the table, which will advice in developing new features, platforms, and solutions.
Given the attitude of the ECB on e-governance appropriate now, the Oraclize activity could atom a new agitation to adapt KYC and AML regulation. Certifying user identities seems to be their top antecedence appropriate now, and this band-aid could facilitate the action in the future. However, the accepted blockchain association feels it is of the absolute accent to accumulate aggregate as decentralized as possible.
What are your thoughts on the idea of linking Ethereum addresses to a absolute activity identity? Is this an befalling account exploring? Let us apperceive in the comments below!
Source: Oraclize
Images address of Oraclize, Shutterstock
