The focus of most companies in the blockchain space is to empower users and give them a level of autonomy that they can’t find in centralised systems (formal institutions such as banks, for example).
A key part of the move for empowerment is to reward users for their contributions within the blockchain system.
Every company has tried to implement a form of rewards system, and while these systems may differ, the goal is the same — to give users a reward that empowers them financially.
Credits given within the blockchain system hold monetary value – or a value that is essentially equivalent.
These rewards can be used within a particular blockchain-linked industry or they can be exchanged for money.
The idea is to give users a strong incentive to continue with blockchain technology.
There are a few obstacles, however, that need to be dealt with in order for users to fully benefit.
With the growing developments in the blockchain space, and with the decentralised nature of blockchain, it is important that businesses ensure that they are in compliance with Know Your Customer (KYC) and Anti Money Laundering (AML) regulations.
KYC is the process where a business verifies the identity of its clients and assesses potential risks of illegal intentions for the business relationship.
These are regulations that ensure that criminal activity is prevented, and transactions can occur securely and confidently.
In order for any financial institutions, regulated industries, merchants and/or service providers to run in any industry, they need to be in compliance with these regulations.
The same goes for many businesses in the blockchain space.
Companies are working their hardest to ensure that they follow these rules, but their implementation of these standards is very costly and has led to a major inconvenience for users, leading to a high drop-off rate in consumer onboarding.
In order for users of regulated blockchain applications to use a company’s services or purchase products, they typically will need to fulfil the KYC requirements.
For every application they make use of, they have to fill in the same details which very time consuming and cumbersome.
To deal with these gaps, one major field of interest among blockchain companies is identity verification, and this is one focus of platforms like Blockpass, which focuses on practical solutions in dealing with KYC.
A mobile approach to identity
The user-focused, user-controlled mobile identity application designed for smooth and immediate access to regulated services.
In its initial iteration, Blockpass is a KYC and AML application-as-a-service.
Its aim is to solve the current KYC problem that is present in the blockchain system and bring the blockchain industry into the mainstream with streamlined identity verification services.
Users can establish, verify, store and manage their identities while still maintaining full control over all personal data involved – something that plays well with current privacy regimes like the European GDPR and other regulations across Southeast Asia and beyond.
With an initial focus on human identity, such platforms provide a reliable and cost-effective KYC and AML services for regulated industries, merchants and service providers of all types. This means that the process of complying with these regulations will become easier for both users and companies.
Beyond transforming the way KYC and AML verification, a blockchain-based approach can also offer an opportunity for other companies to leverage the advantage of next-level technologies through API-based verification solutions.
It’s essentially a plug-and-play means to do KYC and verification without the need to build an entirely new solution from ground-up.
Mainstreaming the “Smart Company”
One concept being introduced into the mainstream is the idea of the “Smart Company”, which a startup called Korporatio is focusing on.
Simply put, Smart Companies are globally-connected and blockchain-compatible companies with their own legal identity.
Korporatio’s service creates legally recognised trading entities which can own assets and capital, and employ people – all through a blockchain approach.
Using smart contracts and blockchain technology, the platform is already changing the way that businesses start up and operate by removing the bureaucracy and red tape that often hampers progress.
The solution integrates with Blockpass’ KYC verification process, thus leading to a seamless and compliant user onboarding for new users.
With a tokenised approach, users also get benefits in the form of tokens as an incentive for signing up during a limited time.
Similar blockchain companies that are employing this KYC compliance solution include Infinito, GoSecurity and DSTOQ – all with focus on security, privacy, and ease of use.
The long-term goal: A seamless blockchain ecosystem
With all the new and different blockchain solutions being launched of late, the main goal is perhaps gearing toward a seamlessly functioning blockchain ecosystem that will allow more inclusiveness for users across the globe for individuals, businesses, or other organisations.
With secure verification, users will be able to participate in the ecosystem knowing that their information is secure, while being financially empowered at the same time.
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