Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity

• URL: http://arxiv.org/abs/2112.01237v1
• Date: Thu, 11 Nov 2021 11:05:06 GMT
• Title: Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
• Authors: Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach
• Abstract summary: We show how blockchain-based self-sovereign identity (SSI) can solve the challenges of Know Your Customer (KYC) We follow a rigorous design science research approach to create a framework that utilizes SSI in the process.
• Score: 0.0
• License: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Abstract: Know your customer (KYC) processes place a great burden on banks, because they are costly, inefficient, and inconvenient for customers. While blockchain technology is often mentioned as a potential solution, it is not clear how to use the technology's advantages without violating data protection regulations and customer privacy. We demonstrate how blockchain-based self-sovereign identity (SSI) can solve the challenges of KYC. We follow a rigorous design science research approach to create a framework that utilizes SSI in the KYC process, deriving nascent design principles that theorize on blockchain's role for SSI.

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