ICO Review - 5 reasons why Traceto.io should be the futur of the KYC protocols

biomanforcerose (0)(1)in #ico • 6 years ago

Traceto.io is a decentralized KYC (Know Your Customer) network which aims to provide a complete solution for the automated identity verification based on blockchain and AI

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1. A booming sector that needs to evolve

With the explosion of the crypto in 2017, the KYC process is becoming increasingly democratic. Anyone who is part of the crypto community have already do a KYC/AML or at least have already heard about it. But what exactly is it ?

A KYC (Know Your Custumer) is a process that allows an organization to verify and evaluate the identity of a (future) customer. For example, when you want to open a bank account, the bank asks you a certain number of documents (identity card, proof of address, ...) to verify your identity. This is a regulatory measure put in place to combat money laundering (AML) and the financing of terrorism (TCF).

In the world of Crypto, KYC/AML/CTF processes are not systematically adopted and respected. This limitation results from a number of factors:

The assumption that the anonymity of Crypto is incompatible with the need to comply with the AML and CTF regulations. And so priority to anonymity.
A low priority assigned to compliance because of its perception only as a cost center.
A lack of budget and especially a lack of experienced staff on the topics of compliance and construction of quality KYC processes.

The current KYC process is therefore relatively inefficient and defective. However, most of these defects can be overcome by using blockchain and related technologies.

That's why traceto.io, relying on more than 5 decades of compliance experience in banks and start-ups, has decided to propose a decentralized KYC solution that will solve a large part of of these problems.

2. A complete solution

KYC's decentralized digital network solution from Traceto.io aims to provide control and management of the KYC process to the community. The goal is to encourage users to self-organize to ensure confidentiality but also compliance with regulatory requirements. For this the traceto.io network will be based on three main roles:

The Corporate Requester: this is an exchange, an ICO or a Crypto company that requires the services of the KYC network of traceto.io
The user: it is a person integrated in the traceto.io network. This integration is only completed after the upload of the personal identifiable information (PII) and after screening tests and liveliness.
The Verifier: This is a trusted user who supports KYC related tasks. Auditors undergo very strict background checks and also serve as custodians of user data.

The Traceto ecosystem will consist of several DApps to facilitate the KYC network:

User DApp: this is the interface that allows users to access the Traceto network. The process of integrating a user begins when he uploads his documents (PII) and has passed the "liveliness" test.
Service Provider DApp: This interface allows a service provider to check the information received during a KYC and update the reputation scores. The scores will be encrypted with the public key of the provider and stored on the blockchain.
Corporate Requestor DApp: This interface gives Corporate Requesters an interface to pay for KYC requests from Users and renew them once they have expired. It also provides access to the user's public keys and KYC scores.
Community DApp: This application allows auditors to perform a social audit of new users, apply to become an auditor, manage requests from requesting parties to view user documents, and perform other governance roles.

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3. Use of IA, community and open source

Artificial intelligence offers many possibilities to democratize the KYC process. The use of deep learning or machine learning are two examples. In addition, convolutional and Siamese neural networks are widely used algorithms in facial recognition and the determination of facial similarity. Many market players only use these technologies to automate their KYC process as much as possible. It's not the vision of Traceto.io that wants to use Artificial Intelligence like a complement the community. Traceto goes even further by talking about collaboration between the AI and the community that will keep control of the platform.

In addition to this, Traceto uses, develops, and enhances a number of algorithms using Artificial Intelligence with the objectives of using them in facial recognition and similarity processes, monitoring suspicious and fraudulent transactions and scoring of reputation. Notably, these different algorithms are open source as much as possible to allow the community to audit and improve them, which will make the Traceto solution more evoluted and robust.

4. An experienced team

The team consists of experts and professionals with over 50 years of combined experience in the areas of compliance, regulation, auditing, machine learning, blockchain and finance.

Chionh Chye Kit, founder and CEO of Traceto, is also the co-founder and CEO of Cynopsis Solutions, a RegTech100 company specializing in KYC processes. In addition to this, he manages CCK Solutions (a company he founded), a regulatory compliance consulting firm. In the past, Chye Kit has held senior positions in major financial companies, such as Macquarie's Asia Compliance Officer.

Dias Lonappan, CTO and co-founder, has a good experience in the development of applications using Bitcoin blockchain.

Dr. Loi Luu, CEO of Kyber.Network and Ethereum Evangelist, is one of the five Advisors of the project. As cryptocurrency exchange is one of Traceto.io's prime targets, Dr. Luu's involvement is a very good thing. Note that Kyber.Network will integrate the KYC framework of Traceto.io.

5. A project backed by existing KYC society

Traceto.io is a subsidiary of Cynopsis Solutions Pte. Ltd, a Singapore-based RegTech company specializing in KYC process management for businesses. Cynopsis has approximately 450 crypto-clients as well as leading experts and advisors. This brings greater credibility and legitimacy to the project.