BLOCKCHAIN BASED SECURITY FOR KYC MANAGEMENT

blockchain

1. MID SEM PRESENTATION OF THE DISSERTATION WORK ON BLOCKCHAIN BASED SECURITY FOR KYC MANAGEMENT RITIK TRIPATHI (323103106) Under the supervision of Dr. RITU GARG (Assistant professor)

2. Table of Content INTRODUCTION BACKGROUND DETAILS PROBLEM DESCRIPTION RELATED WORKS ARCHITECTURAL FRAMEWORK MATHEMATICAL EQUATIONS MODEL EVALUATION CONCLUSION AND FUTURE ONGOING PLAN SIGNIFICANT REFRENCES

3. Introduction OVERVIEW OF KYC PROCESS IDENTIFICATION ADDRESS VERIFICATION RISK ASSESSMENT ONGOING MONITORING PRIVACY AND DATA SECURITY BLOCKCHAIN TECHNOLOGY DECENTRALIZATION IMMUTABLE LEDGER CRYPTOGRAPHIC SECURITY SMART CONTRACTS TRANSPARENCY

4. Background Details Traditional KYC processes involve :- C umbersome paperwork M anual verification S iloed data systems leading to inefficiencies, high costs, and security risks. Blockchain technology offers a promising solution by:- D ecentralized I mmutable T ransparent platform for identity verification and data management.

5. Problem Description The current KYC process requires physical attendance at banks to provide personal information such as identity cards, photos, utility bills, and more. The system has weaknesses and vulnerabilities as it is time-consuming, repetitive, and prone to error. Key Issues with Traditional KYC: Fragmented Data: S tored across multiple institutions, leading to data breaches. High Costs: Manual verification processes Security Risks: Centralized databases are vulnerable (THEFT) Regulatory Compliance: C oordination among stakeholders. Traditional KYC process Blockchain approach for KYC

6. Related Work Blockchain-based identity management and access control framework for open banking ecosystem[1] Credentials are hashed and encrypted by using gpg4win as an encryption tool. Uses BIMAC Model for the throughput and latency. Enabling Trust and Privacy-Preserving e-KYC System Using Blockchain[2] Secure and decentralized authentication and verification User consent enforcement feature Sensitive transaction data encrypted using symmetric key encryption A Review of Blockchain Approaches for KYC [3] The article presents a systematic literature review (SLR) focusing on blockchain-based e-KYC systems.

7. Architectural Framework Proposed System architecture

8. 6.1 6.2

9. Flow of codebase

10. System Flow

11. Mathematical Equations Hsh = SHA256(nonce + previous Hsh + data + timestamp) Hsh = SHA256(nonce + previous Hsh + data + timestamp + difficulty) isValidChain = ∀ i Hash = SHA256( noncei + previous hashi + datai + timestampi ) ∧ (previous hashi + 1 = Hashi ) The mining difficulty is adjusted to maintain a consistent block generation time: ( difficulty − 1 if (timestamp − prevTimestamp ) > MR (Mining rate) (difficulty + 1 if (timestamp − prevTimestamp ) ≤ MR (Mining rate) For Redis Server: LatencySET = TimeEND − TimeSTART LatencyGET = TimeEND − TimeSTART

12. Model Evaluation

13. Iteration 1 Iteration 2

14. Comparison with related work

15. Future ongoing plan Blockchain is very much beneficial because:- Interbank Settlements Secured Trade Finance Cost Reduction by eliminating intermediaries Improved Transparency and Accountability Enhanced Security FUTURE ONGOING PLAN:- Use enhanced privacy techniques like Homomorphic encryptions and zero knowledge proofs Scalability issue :- developing novel consensus algorithms Policy standardization among banks User experience and adoption Future work will focus on pictorial-based data verification for e-KYC transactions, aiming to handle image-based KYC data more efficiently and scalability .

16. Significant refrences [1] Liao, C. H., Guan, X. Q., Cheng, J. H., & Yuan, S. M. (2022). Blockchain-based identity management and access control framework for open banking ecosystem. Future Generation Computer Systems, 135, 450-466. [2] Fugkeaw , S. (2022). Enabling trust and privacy-preserving e-KYC system using blockchain.  IEEE Access ,  10 , 49028-49039. [3] Mansoor, N., Antora , K. F., Deb, P., Arman, T. A., Manaf , A. A., & Zareei , M. (2023). A Review of Blockchain Approaches for KYC.  IEEE Access .

17. Thanks!