Proof-of-existence is a demonstration of a working application based on RecordsKeeper Blockchain. This utility is used to publish and verify data on the RecordsKeeper Blockchain.
You can publish any data file and this application will convert that file into a hash value and then stores that hash on the RecordsKeeper Blockchain. You can also verify that file by uploading it on the verify page of the application, and if it exists on the RecordsKeeper Blockchain, then the application will check against the hash value of the file and return all the transactions related to that file. A toggle is given on the top right corner of the application through which you can switch to Testnet and Mainnet of RecordsKeeper Blockchain. This application supports both networks so you can publish and verify on any of these networks.
So, let’s see the complete working of Proof-of-existence application:
Step 2: Now, if you have to publish a file over RecordsKeeper Blockchain then enter the Name, Email, and Message(optional) fields. Then select the file that you want to publish by using Choose file button or by dropping the file on the panel.
Step 3: As soon as the file is uploaded, document hash gets generated and you will see a page similar to this picture:
Step 4: Now after clicking on the “Generate Poe Now” button a success table gets generated with details like transaction id, signature, confirmations, blocktime and blockhash etc.
Step 5: This table also has an URL which contains the link to the page that will return the result of all the records of the RecordsKeeper Blockchain against its signature value.
Step 6: Next step is to verify the document that is uploaded on the RecordsKeeper Blockchain and for that you have to upload the document on the “Verify Poe” tab and then click on the “Verify Poe Now” button. It will show a page which have all the transactions arranged in a chronological order that are recorded against uploaded document signature.
Step 7: This application also shows the five recently generated poe in a table with Document digest and the recorded timestamp as the general information.
Anyone with the URL of the file can verify the existence of the file recorded on the RecordsKeeper Blockchain. The link embedded in the “Transaction Id” redirects to the Blockchain explorer which shows the information related to that transaction.
You can also check out other tools related to RecordsKeeper Blockchain from “Other Tools” tab.
The RecordsKeeper Testnet Blockchain is available for the users to Develop and Deploy applications over RecordsKeeper Blockchain, XRK Testnet tokens do not hold any value and are only available for testing. You can earn XRK tokens from RecordsKeeper Mainnet mining.
Now to connect to the RecordsKeeper Blockchain, run following command from the terminal:
You will see the following message on your Mac command line terminal after you execute the command to connect to the Recordskeeper blockchain.
In case of an error message like this:
Error: Couldn’t initialize permission database for blockchain recordskeeper. Probably rkd for this blockchain is already running. Exiting…
First kill the daemon process and then try connecting to the RecordsKeeper Blockchain again. If the problem persists then restart your computer and then repeat the whole process of connecting to RecordsKeeper Blockchain again.
KYC is a cumbersome, time consuming, arduous and expensive process in the banking sector, financial institutions and other businesses. There are many challenges in KYC processes, which primarily involve huge costs, effort and time. Hence, with centralized databases, the process has become quite a sort of headache to banks and other businesses. So, let’s see how blockchain-based KYC can solve these problems:
Saving Time & Money Using Blockchain-based KYC
Once is enough
Since most of the banks currently perform KYC checks out of centralized databases, multiple checks have to be performed. Even within banks, each department will have to perform repeated background checks of a customer. This is due to what one calls as a data silo. The same has been a problem to most businesses. With blockchain, the KYC is performed only once and it is published and distributed across all nodes or parties. So, there is no need to perform repetitive checks, which saves time, effort and money.
Storage Issues Resolved
Banks need to either have the technological know-how or invest in an external agency to store and protect customer data. These are prohibitively costlier. Investing in high-end systems and employing both the human resources and technology to protect data has proven to be costly. So, blockchain can offer a perfect solution to this problem, as there is no need to constantly monitor and protect the data.
Distributed Ledger Technology
Blockchain uses distributed ledger technology, which publishes data across millions of nodes connected to the chain. Hence, there is no need for a centralized data server or network. This brings down the costs drastically. So, banks can now be free of the need to store and protect data, which is automatically taken care of.
Less Expensive Data Security
In addition to eliminating the need for a centralized database, banks and other businesses need not also worry about hacking. The data is highly immutable, as the storage does not take place in a single centralized server. There really is no need for software and hardware security to keep the data secure on a blockchain.
Immutable and Shared
This brings down the cost heavily to a fraction, as blockchain publishes data on multiple nodes at once. It is not possible or will simply turn meaningless to alter data on a blockchain. At least about 51% of the nodes will have to be in agreement with an identity or transaction. Hence, the data on a blockchain remains immutable.
Infrequent checks and lack of need for a centralized storage and security infrastructure are sure to bring down costs on a blockchain. Banks and other businesses, thus, for KYC processes, can save costs that usually run up to hundreds of thousands of dollars. Currently, blockchain incurs a cost of less than $5 to perform KYC checks and to store and access data. This is sure to go down, as more and more people use blockchain for more and more applications.
Blockchain technology is still in its nascent stages. The BFSI (Banking, Financial Services and Insurance) sector has begun exploring the technology’s potential. However, there still seems to be a long way to go for companies to put the technology to use. The reason is that regulations around the technology and its use cases are in development. Yet, Governments and Central authorities have been contemplating on regulations around both blockchain and KYC, as of now.
Regulations around Blockchain
Since KYC is the most important aspect in banking, there have been quite a few regulations around the practice. Similarly, blockchain has also been becoming inevitable, as companies are now vying to utilize the technology to gain competitive edge. So, Governments around the world, besides watching the growth of the technology, now want to enforce regulations. This can either work for or against the development of the technology.
Blockchain: Regulation or Free Market?
One such view is that blockchain is not merely a tool, interface or utility to either ban or to ratify it. In fact, it is synonymous with the internet. It is vast and quite an entity unto itself. Thence, the lack of centralized control has been worrying central authorities. All of us have a common perception that lack of centralized control will lead to heavy risks and instability. However, it is not possible to ban the technology much like the internet can’t be. Blockchain can serve both financial and non-financial applications, as the use cases extend across industries and their applications.
At the same time, regulations can also have an adverse effect on FinTech companies that use the technology. Localized regulations may lead to an exit from the geographical locations of the companies, while general regulations may render the technology unusable. Since financial institutions will benefit from blockchain by eliminating intermediaries, they will look forward to implementing the technology.
Loss of business due to stringent KYC norms
KYC regulations have already made banking difficult for both banks and customers. Both have to go through cumbersome KYC processes to engage in trading, get loans and get clearing and settlement done. While blockchain will ease the KYC process, governments have also been keen on setting up regulations in place. Blockchain, however, as a form of distributed ledger technology, can only make the process more transparent. Yet, central authorities are looking for ways to implement regulations over the technology.
Will Regulations Speed Up Implementation?
Implementing regulations could sure speed up the development of the technology, as Governments assess the outcome in using the technology. The fear of financial instability arises due to the usage of cryptocurrencies like Bitcoin. That, however, is a minor challenge, compared to the benefits the technology has on offer. Nonetheless, risks, instabilities and volatility are part of the centralized financial world too.
Blockchain could save up to $20 billion in costs by 2022, within five years from now. This will sure come as a huge relief to banks, financial institutions and governments.
Ever since the global financial crisis in 2008, KYC regulations have become very strict in many countries. This gave rise to a lot of issues, ever since. It turned out to be more of a headache to customers and banks than to make the processes easier.
Problems and challenges of the traditional KYC systems:
1) Inadequate Database
Regulatory authorities in almost all the countries have been penalizing banks to the tune of hundreds of thousands of dollars. This has been done, when banks fail to adhere to regulatory norms. In addition to losing business to fulfilling KYC requirements, banks have had to pay hefty penalties. Bankers blame it on the system and “inadequate database”. Hence, some of the banks have moved towards adapting blockchain technology to solve this problem. There have neither been proper databases nor registries, which led to huge complications in the process.
2) Lack of an All-Encompassing Technology
Currently, banks neither meet nor solve KYC requirements and problems. This is due to lack of an all-encompassing technology. The onus is on banks to meet KYC requirements but the problem is in the lack of a proper system. Even in intra-bank processes, banks have difficulty in handling customer information, as is necessary to meet the requirements of each department. At the same time, if a customer operates multiple accounts in multiple banks, the discrepancies grow even wider. Hence, performing KYC processes only once should suffice, which should then be published, distributed and shared. It is these problems that blockchain technology could conveniently solve, which makes it the technology of the future.
3) Lack of Unique Identification
Currently, many countries, except for few developed countries, lack any system or technology to provide unique documented identification of each individual. Multiple documents issued by multiple authorities do not consolidate into a single verifiable identity. Blockchain technology offers the solution of a digital identity, which will be verifiable by banks and other external agencies. Verifying the unique identity of a customer has been a major challenge for banks at the database level.
4) Onboarding and Overhead Costs
Banks face plenty of difficulties in successful onboarding, profiling and monitoring of customers. Onboarding, in itself, is a cost-intensive activity, while performing KYC checks leads to unwanted costs, effort and waste of time. This prevents banks from concentrating on their core business, while stringent KYC norms can even turn away a good customer. So, currently KYC processes lead to a lot of onboarding and overhead costs, while also leading to loss of business. This is another major challenge faced by banks, which led to de-risking and avoiding business altogether.
The challenges faced by banks in regard to KYC compliance have been huge. Lack of proper systems and inefficient and ineffective technologies are to blame. This is where blockchain could play a vital role in overcoming these problems and challenges in KYC processes.
RecordsKeeper can overcome all the challenges in KYC at a very low cost.
KYC (Know Your Customer) became a buzzword, after the 2008 financial crisis. The term became so popular that it is now part of common parlance. So, it predates some history and it did evolve out of complex social, financial and economic causes. In the process, KYC also led to a lot of difficulties in banking for both banks as well as customers.
Blockchain Solutions to KYC Problems
In the meantime, the current crop of technologies did not allow for a complete and effective manifestation of KYC. They didn’t encompass all the intricacies of human behavior nor did they simplify storage methods to encompass them all. This is where blockchain, as a new technology, comes in. It can solve many of today’s KYC problems to help banks concentrate more on their core businesses. Let’s explore how blockchain as a technology can solve KYC problems at the global level:
Onboarding Issues and Solutions
Onboarding has been a costly exercise for banks. It is an immensely time-consuming task as well. This is due to improper registry technologies and services. When a customer wants to open an account, banks send the customer’s personal information to the registries. They store the information in their databases and the customer becomes “KYC Compliant”.
As simple as this might sound, it led to many inconsistencies due to different regulations across different applications. This, in turn, led to repeated and redundant KYC submissions and checks, which cost enormous amounts of time and money. So, blockchain, as a sort of distributed ledger technology, publishes the information across all the nodes, once verified. The data gets decentralized in place of the current centralized registry services and technology. Thus, a KYC once performed can be accessed by multiple nodes with unique permission from the customer. This makes the process much easier, simpler, less time consuming and cost-effective. We at RecordsKeeper are solving this problem by allowing the users to put their personal & official records in the Blockchain locker & use them to get their KYC done. Sign up for the RecordsKeeper to know how it work.
Secure Storage of Data
Decentralized data is far safer than centralized databases. The latter is far more prone to attack, as chances of losing all the information to hackers are quite high. Decentralized data, published across millions of nodes, is highly immutable and less prone to hacking attacks. Since all nodes have to agree on the transaction, the data remains highly immutable. The data is also completely encrypted and anonymous, unless shared peer-to-peer with the bank or the agency by the same person.
Lower Overhead and Operational Costs
From soloed databases to redundant and repetitive checks, centralized database technologies run up costs, time and effort to huge levels. KYC processes are also usually counter-productive or less productive. So, this can lead to a lot of friction preventing banks from providing seamless services.
Thence, from the $6,000 to $25,000 spent on onboarding and $80,000 per petabyte of data, blockchain databases will cost less than just $5. So, blockchain is a technology that will solve many of today’s KYC problems and reduce cost, time and effort to make KYC processes easy and efficient.
For Large Business (BFSI, Telecom, Healthcare, Supply-chain)
Let’s say, for example, Kotak Bank has implemented our solution in-house to save time & money avoiding redundancy in KYC within the Bank. Below steps will result in saving cost & time through Intra-Bank KYC Blockchain model.Let’s say Kotak Bank has implemented our solution in-house to save time & money avoiding redundancy in KYC within the Bank. Below steps will result in saving cost & time through Intra-Bank KYC Blockchain model.
Let’s say Kotak Bank has implemented our solution in-house to save time & money avoiding redundancy in KYC within the Bank. Below steps will result in saving cost & time through Intra-Bank KYC Blockchain model.
Step 1: Kotak Customer applies for Bank account with Kotak and uploads the documents for KYC on Kotak’s website.
Step 2: Kotak Bank verifies the Identity by doing the KYC & upload the documents (via APIs) to the RecordsKeeper’s Blockchain (Implemented in-house in Kotak’s infra- structure)
Step 3: Kotak Opens the account & also gives “Kotak KYC ID” to the customer and also maps it to customer’s account.
Step 4: Now the same customer wants to apply for term insurance with Kotak for 3 Crore.Step 5: Customer only has to share the “Kotak KYC ID” while applying for term insurance and Bank will get KYC from customer’s account. Only additional documents can be added to the Blockchain if missing.
Step 6: Kotak can rely on the KYC documents safety & immutability because it is on Private Blockchain in a distributed manner. Also giving them high availability without relying on the central system for records keeping.
Step 7: Kotak can now produce the documents in front of regulators while proving the KYC docs directly from the Blockchain with just one click.
Step 8: Kotak can also share their customers KYC docs with the associate companies & departments externally in a highly secure manner.
RecordsKeeper is an Open Public Mineable Blockchain for RecordKeeping & Data Security. It offers a full suite of structured and easily accessible record keeping for organizations and individuals. Record Keeper creates a platform for structured storage over the decentralized network for the ease of data access and security between peers. The Record Keeper capitalizes over the pros of the Blockchain network to create an ecosystem for secure transfer, authorization, integrity, and authenticity of data.
Here is a demo of how Recordskeeper work
Step 1: Introduction
Register yourself on Recordskeeper Blockchain by providing your name and email I’d to store your documents in the records keeper
Step 2: Get XRK token
Generate XRK wallet to upload data on the Recordskeeper Blockchain; it is necessary to have an XRK wallet to upload data on the XRK wallet.
After generating the XRK wallet, you will be provided with the public & private key. Download the keys and keep it save for the further transactions.
If you already have an XRK wallet, enter your private key and start uploading the data on the Recordskeeper Blockchain.
Step 3: Create Record
Here, you can start recording your data into the Recordskeeper Blockchain.
Follow the instructions to enter data into the Recordskeeper Blockchain
Enter your data identifier which is associated with your data, and it will be publically visible on the blockchain
Enter your data, which may be in any format like JSON, digest, hex code, text, e.t.c.
Step 4: Review Data
Now review the data carefully, which you have entered to be stored on the Recordskeeper Blockchain and click on authorize to submit the data on the blockchain, specifying the private key of your XRK wallet.
You can also review the data with the transaction URL provided to you.
Step 5: Retrieve your data
Enter your Record identifier to retrieve data from Recordskeeper Blockchain.
Now, you have successfully understood the method of storing and retrieving data from the Records Keeper Blockchain.