One of the advantages of the new KYC mechanism is that personal information is not stored on the blockchain and only the hash value is recorded, so there is no risk of personal data leaking from the blockchain.
Adding to previous announcements by GMO Internet Inc. (TYO:9449) on its achievements in the area of crypto currency and related technologies, the company said today it was launching open source KYC in a move that marks the fifth phase of the GMO Blockchain Open Source Software Project (GMO Blockchain OSS).
The rollout of KYC as open source is seen to reduce human and financial costs of identity verification through the use of the blockchain. GMO Blockchain OSS is now preparing for the development of smartphone application for certification body and demonstration experiments in collaboration with GMO GlobalSign to put this mechanism into practical use.
The mechanism of “KYC” taps the advantages of the blockchain. For instance, only the owner of the “key” corresponding to the address can initiate processing for that address.
Also, by recording a user’s personal identity information as authenticated by a certification body on the blockchain along with the user’s blockchain address (a public key), services such as banks can easily and quickly confirm identity. This mechanism can be applied in various areas that require identity verification, such as opening a bank account, creating a credit card, and trading at token exchange. It leads to a reduction in process to verify identity through sending written documents and to a reduction in financial costs.
On top of that, the personal information is not stored on the blockchain and only the hash value is recorded, so there is no risk of personal data leaking from the blockchain.
In the preceding phase of GMO Blockchain OSS, the company partnered with GMO-Z.com RUNSYSTEM JSC to demonstrate the security applications of blockchain technologies. One area in which this collaboration works is deterring illegal resale of tickets and the rollout of paperless tickets that are protected via the new technology. In the end of August, GMO Internet announced the launch of the third phase of GMO Blockchain Open Source Software Project, introducing its new Region Token.