Use cases in KYC, user privacy, and online identity verification - Altcoins and Decentralized Identity Solutions
Undoubtedly, Altcoin projects like Civic (CVC), SelfKey (KEY), and Ontology (ONT), which are dedicated to offering decentralized identity-aligned solutions, serve as invaluable markers toward delivering significant improvements in the underlying processes of Know Your Customer (KYC) compliance, with great expectations possibly raising user privacy even to an online verification level. Again, the points above serve as classic demonstrations of the revolutionary works performed for digital identities through the possible introduction of blockchain technology.
The other most important development in a well-defined area is Decentralized Identity in KYC verification. A new paradigm has been established: KYC without collecting, or resubmitting data - multiple redundancies on sensitive information to financial institutions, exchanges, and other such services. That creates a severe risk of breach within these organizations, particularly because of the repetitive submission of sensitive data to different entities. Civic and SelfKey are associated with solving the redundancy and security issues through their solutions where users store their verified KYC credentials on the blockchain. After verification, these credentials would be used to share with service providers.
On personal demand, such platforms will give privacy to that user because the person can control when and where their private data can be used. Users are also given the ability to make decisions regarding who can access particular secret information, rather than allowing third parties to be able to access deferral identity information. One point this would reduce is the misuse of such secret information and also is a step toward more and more regulations on privacy worldwide like GDPR.
There are various ways to prove how identity verification can take place online: Cross-Platform Authentication, AlwaysSecure, and ONT-ID from Ontology have to offer. All of this is particularly helpful when someone uses dApps as it does not require divulging his password or personal information to enter the decentralized application.
These examples show how altcoins are focused on decentralization.
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~ Nesaty
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