Blockchain based eKYC

This article describes a blockchain based eKYC system, its architecture and processes.

In a blockchain based eKYC system (eKYC in short), user data (name, DOB) is stored in blockchain, but user biometric data is not stored in blockchain. It is stored in de-centralised database (IPFS). The hash of the user biometric data is stored in blockchain instead.

Furthermore, any access to user data must be authorized by the user, and the access is logged in the blockchain.

The eKYC mainly consists of two parts: user onboarding and user authentication.

For user onboarding process, the diagram below shows the sequence. The user opens KYC app, submits biometric data (fingerprint, photos, video), personal data (name, DOB, address, gender, etc), via the KYC app. The data is stored in blockchain, and biometric data in de-centralised database.

For user authentication process, the diagram below shows the sequence. Business requests to access user data. The request is sent to blockchain and smart contract raises an event which gets sent to KYC app. User is informed via the KYC app. The user can choose to approve the KYC request. The user approval is also logged in blockchain. After user approval, user data is retrieved via the blockchain, and returns to business. Business can communicate to KYC platform via an API or rpc call.

The eKYC architecture is shown below. The eKYC system consists of KYC app, KYC backend, blockchain and de-centralised database. The KYC backend is the core of the eKYC system. It has interface to blockchain, to de-centralised storage. It can also provide API or rpc for other services to call.

A blockchain based eKYC system brings the benefits of access logging, user data into blockchain. The user data is de-centralised, and not owned by any company. User owns and controls the data.

Th eKYC system is made up of micro-service. Crypto exchange that requires blockchain based eKYC solutions can incorporate the eKYC system into the crypto exchange software architecture.