An Automated Secure Smart-Contract Driven KYC Solution

Know-Your-Customer (KYC) is the process of verifying the identity of the consumers, which is an essential component of organizations (hospitals, financial institutions) handling sensitive data of consumers. Designing a reliable automated KYC system with multiple verifiers is difficult since a single identity theft or data breach may lead to serious fraud. Permissioned blockchain has evolved as a significant solution to handle sensitive data, which is one of the state-of-the-art methods for performing KYC. This paper presents a novel smart-contract-based system, which utilizes a permissioned blockchain with deep learning enhanced user data acquisition for onboarding consumers. In place of manual data collection, an automated deep learning-based data extraction module extracts the data from the uploaded documents, which is further utilized by smart contract logic for validation. The proposed framework guarantees that a user once registered into the system, need not repeat the KYC unless any update is initiated, which helps in avoiding the repetition of KYC.