Blockchain-based Digital Identity Verification in Banking
Year: 2024
Type: article
Abstract: Blockchain technology is revolutionizing banking through secure and decentralized digital identity verification.This paper explains how blockchain identity systems minimize identity fraud, streamline Know Your Customer(KYC) compliance and simplify customer onboarding through self-sovereign identity (SSI) models. Conventionalidentity authentication frameworks are based on centralized databases that are susceptible to breaches andinefficiencies. Blockchain provides a tamper-evident, decentralized ledger that achieves data integrity,transparency, and control of personal credentials by individuals. By employing cryptographic protocols and smartcontracts, banks can provide effortless authentication at decreased cost and regulation. The deployment ofdecentralized identifiers (DIDs) and verifiable credentials (VCs) allows for a better security solution to digitalidentity in the form of mitigated risk from unauthorized access and fictitious transactions. Moreover, blockchainKYC solutions streamline working efficiency by making verification easier and eliminating duplicate complianceverification at financial institutions. This paper gives real-world applications of blockchain in banking identitymanagement, emphasizing how it affects fraud protection, regulatory requirements, and customer experience. Theresearch establishes that blockchain can transform digital identity validation, securing banking, streamliningefficiency, and making it privacy focused.
Author: Goutham Bilakanti
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: hybrid
OpenAlex ID: W6930694313
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