Yes or no to KYC in decentralized networks?
This is the origin of all this great movement in the economic world that has been happening in the last 11 years.
From the creation of bitcoin, ethereum, and other cryptocurrencies with their respective blockchain, has triggered a change in vision in terms of money management in millions of people.
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With the creation of cryptocurrencies, exchange houses, virtual portfolios, and other platforms for the exchange of these, it has generated that most of the states of the world seek ways to implement a legal framework in which all transactions are handled with cryptocurrencies.
Despite all this, the possibility of remaining anonymous is very important, as this feature has a margin of personal security.
This is where the following question comes in:
"For who does not know what it means,
Although the term "Know Your Customer" does not suggest anything to most of us, it has a very important meaning in the business world. The "Know Your Customer" process, also known by its acronym in English KYC, is what financial institutions do to verify the identity of their clients in compliance with legal requirements such as the fourth European Directive against money laundering."
Source
This topic arises from a publication of an important user within this platform, @hatu,who in this publication It tells us about a platform where you can also monetize the content, this is CBNT, which already has its own cryptocurrencies that supports it and basically works in China, with a view to expanding its use to enable the opening of accounts from other continents , but one of the conditions to start activity in this is to go through a process of verification of your identity by sending a photo of an identity document, as well as a photo of yourself with a document in your hand and with a specific writing on a sheet in the other.
The reason why in this case they implement the KYC is to avoid abuse by those who are always taking advantage of these opportunities.
Some people agree with the use of KYC in the blockchain as well as who does not. Some argue that using it in these platforms goes against the decentralization that is used as a flag of these networks, it is also a tool used by all banks worldwide.
Then I ask myself:
KYC or not KYC?
And if it is not this option to avoid abuses,
Which other could be implemented to avoid it?
and also:
Are we really in a totally decentralized network?
For reading me thank you very much.
Until a next publication.
There's probably no way around KYC in many constellations regardless of the screaming and kicking of those who think this goes against decentralization as a whole. If you want to do business in a widely regulated environment you'll have to live with some form of regulation or your loosing access to big parts of the overall market.
Still the question becomes are these organizations, projects, businesses fit to handle personal identifiable information. We've just discussed this in another article. My answer is... in many cases they are not! It stays a dilemma for the foreseeable future IMO.
Living with some type of regulation, certainly, is necessary to maintain order.
What really worries me a little is what they do with my personal information. That's the detail.
Thanks for the comment @doifeellucky
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I think KYC will become important eventually but as for now sending your details to centralised companies is a no for me. It could be done in a trustless way using biometrics, oracles and a token like civic to prove that you are one person.
Which is what I would like to see become the standard
You have contributed an important fact, did not know about the civic tocken.
I'm going to investigate it, thanks for the support and for the information.
It's really about who gets all that info. Why should I tell my details to a random organization? I've stayed way from many of those ICO/IEO things because I'm not too happy about my personal details revealed all over the internet.
If it's an already big and stable company and I really need to use services (Eg: Binance)I won't mind going through the KYC stuff. But seein it everywhere is not something I'm happy about.
FUCK KYC
That if that is a simple response, practice and explicit jejeje
In my opinion KYC is good in some cases. For example if in a ICO the contribution per person is capped at a certain amount, it will allow the tokens to be distributed quite equally among the participants and not be held by a small group of whales.
Cheers!
I think it has a justified use in some cases, but in general, many with whom I have spoken are in disagreement with using it.
Well, we should look for a way to not expose the identity, since that is in a certain way what is being pursued.
but there is for everyone.
Thanks for the support.
The less information you provide in the crypto world, the more is better. Do not provide your information on every opportunity that provides incentive with tokens, this information is often used and sell on their advantage.
It's a way to buy information, offering tokens, so I see it.
And definitely that is information to which they took advantage, without our consent.
You are very right in that.
@josevas217, In my opinion, Initial period of Cryptocurrencies were very effective without KYC but we all know why KYC exists and why it's important. But, yes, Non KYC Initiatives gave new perspective to people and let's see in future which project will come with KYC or which one will not.
Yes, everything at first is glimpsed in a way, but as you say, only time defines.
We must wait to see what happens with the use of KYC in the future.
People increasingly want to contribute less data, spend more unnoticed in relation to these issues.
Thanks for the support @chireerocks
Welcome and let's see. Until something is empowering people it's fine.
I think one of the important features of a decentralized blockchain is the ability to remain discrete and in the course of history we have seen loads of Bitcoin, Altcoins, companies associated or offering services for them or with them come and disappear without a trace. A lot of the criminals that set up those dead companies have loads of data of people that registered with them and provided KYC for them, have we ever wondered what they are doing with our data? A lot of legit blockchain companies and exchanges have been hacked in the past, what guaranty are they offering that theirs won't be hacked? Can they provide such guaranty? And if they eventually get hacked what happened to our data? All these make me to say NO to KYC.
I think using IP addresses is a start, other suggestion includes limited biometric, Holding a notice and taking a picture of yourself. Those are some of the things I can come up with for now.
I had not thought about the possibility of hacking and stealing that information, but obviously that is within the possibilities.
It is complicated, since if it is true that the interne, the chain of blocks has come to give us some degree of freedom, possibility of breaking many borders, it is also true that the information has been put on a silver platter for many to use. in his favor, even without prior consent.
There are other options to check that you do not abuse a system, without needing to provide so much information.
Thank you very much for your contribution @ketcom
You're welcome my dear.
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It's very uncomfortable to give us our identity. Every system that enters the market wants our kyc information. They're not all safe.
Yes, that seems uncomfortable to me too, it should not be, in my opinion, but each project puts its rules and there are those who assume them, but who does not.