Traceto.io — The Decentralized Network of KYC

vinu87 (36)in #traceto • 7 years ago (edited)

In the 21st century, the struggle against international terrorism and criminally acquired assets became urgent for the international community. Therefore, specialized international organizations forcefully implement norms that oblige financial and administrative structures to closely study their potential business customers. Financial organizations, accounting and legal offices that accompany the activities of commercial structures, of course, continue to be client-oriented. But being monitored by the controlling state bodies, they are forced to slightly recede from the principle of complete loyalty. Otherwise, if certain indications are revealed, they face serious sanctions.

The ICO Traceto project was developed by the parent company Synopsys Solutions and provides KYC status and anti-terrorism services to Artemis and ICON, Kypernetwork. Traceto is based on the Artemis solution by combining intelligent contracts with artificial intelligence to create Dapp on the Ethereal platform. For the Traceto system, users download personal documents to the system, encrypt them, and store them in IPFS. The certification authority (the company or person providing the certification service) then verifies the information provided, and in general, the certification authority is the person or organization that provides the credibility. This service is a paid token.Companies wishing to verify customer information through the system must pay a T2T token. Traceto integrates intelligent algorithms to maximize the identification, such as face recognition algorithms, to identify differences between images.

The Traceto ecosystem is expected to consist of four major evacuations.

- Dapp for users: A user interface that loads the repositories required to perform authentication. The confirmation document is then scored by the system.

- Dapp for Service Providers: An application for companies that provide services to receive and evaluate documents. Scores are stored in a block chain.

- Dapp for Business: This is the interface that companies use to validate customer information.

- Dapp for communities: This section allows community members to participate in the verification process for your affiliate social networks and become a verified service provider.

The KYC rule for assessing potential risks

One of the foremost "soft" international management standards is that the KYC rule - Know Your consumer, the well-established translation of that into Russian is developed as "Know your customer!". In accordance with the observe of application of this principle it'd be a lot of correct to translate into Russian because the "Selection rules for purchasers." The essence of it is reduced to the need to provide a potential client of a financial organization with a package of documents containing regulated information about his personality.

What documentation identifies the person in the KYC system

The set of documents is standardized for legal entities and individuals, and its composition is determined by the nature of the forthcoming procedure. So, for example, to open a bank account you will need to provide together with the completed application form:

a notarized copy of the relevant passport pages (with photo and signature);
confirmation of residence (they can be certified translation of the pages of the passport of the resident with a photo, signature and place of residence or, for example, a certified copy of the accounts for the provided utilities);
recommendation from a bank in which the applicant already has an account, or a letter of recommendation from a lawyer or a certified accountant accompanying his activities (it should describe the status of the relationship).

How does KYC work?

The system performs several functions at once. On the one hand, KYC gives the financial structure the opportunity to protect its interests:

she certifies the identity of the client;
allows the security service to determine the degree of risk of involving the client in illegal activities (a priori it is considered that every single client is exposed to such risk);
allows, in order to manage its own risks, to establish a filter regulating the type and number of transactions for a specific client;
allows you to monitor unusual client transactions and, if necessary, initiate their investigation.

On the other hand, in most cases KYC plays into the hands of the client himself. The truthful information provided to them will help the bank employee to select for him such an account, which will correspond to real requests - whether it's accompanying business activities or protecting assets. A stock exchange broker who knows the financial situation of his client and the specifics of his activities will give him the most appropriate investment advice, and the financial consultant will select the optimal solution for asset management.

The T2T token is the token of the Ethereum network used for smart contracting in the system's ecosystem billing service. Every time a service is used, a small portion of the fee is gradually burned to reduce the supply of T2T tokens