TRACETO.IO - THE COMBINED POWER OF BLOCKCHAIN AND ARTIFICIAL INTELLIGENCE FOR AN INTEGRATED e-KYC

The “What” and “Why” of KYC
Know Your Customer (KYC) is simply the process through which an organization assesses and verifies the identity of their clients. It is a regulatory measure set up to guard against anti-money laundering (AML), counter terrorism financing (CTF), and market misconduct. It is common practice in financial institutions; banks require you to submit certain documents to verify your identity before you can operate an account with them.

Cryptocurrency is still nascent and far from reaching mainstream because of issues like scalability and volatility, and then many do not yet understand the technology behind it. Even governments and institutions are incoherent in the classification of cryptocurrencies, but if virtual currencies will go mainstream, we need some level of regulations that will albeit not jeopardize its decentralized nature. Regulations bring confidence to its users. As an investor, you want to be sure the project is legitimate and developers will not abscond with your funds. Crypto companies also want to be sure that their platform is not being used as a channel to finance illicit activities. This is where KYC comes in this budding virtual world of digital assets.

What’s the Problem?

Know Your Customer (KYC) protocols which protect against AML and CTF violations have not been consistently adopted and complied with both in the real world and the virtual world by businesses, blockchain-based network companies and exchanges. In the crypto space, limitation results from a number of factors such as the cost of implementing KYC, lack of experienced compliance team, and the pseudo-assumption that KYC compliance is antithetic to the anonymity of cryptocurrency. These have contributed to the inefficient and defective KYC processes currently in place. These issues of concern can be solved using blockchain and its allied technologies.

The Solution

Traceto.io is introducing a unique blockchain-powered solution that is decentralized, privacy preserving and yet compliant. The Traceto.io KYC framework combines smart contract and artificial intelligence (AI) to provide an inclusive de facto standard KYC solution for the decentralized ecosystem. I will consider the features of Traceto.io’s solution based on the following yardsticks:

The company: Traceto.io is owned by Cynopsis Solutions Pte. Ltd, a Singaporean RegTech Company specialized in handling KYC processes for companies. The company boasts of about 450 crypto-clients and top-notch experts and advisors. Chye Kit is the CEO and co-founder o Traceto.io and also doubles as the co-founder and Managing Director of Cynopsis Solutions. So you can give it to them in terms of legitimacy, visibility, and experience.

Team and Experience: The team consists of top-notch experts and professionals with impressive profiles of more than 5 decades of combined years of experience in compliance, regulatory, audit, machine learning, blockchain technology and finance fields. Currently, they are serving the KYC needs of 400+ crypto-clients. There is no doubt that they can successfully bring their experience and solution to the blockchain.

Framework and Technology: Traceto.io platform leverages on the capability of the Ethereum blockchain and artificial intelligence to provide a decentralized and compliant KYC process. It consists of Ethereum-based decentralized application (DApp) for users, service providers, corporate requester, and verifiers which serves as interface for them to interact with the network on KYC. In order to ensure data security and privacy, user data is encrypted using homomorphic encryption while storage of Personally Identifiable Information (PII) of users is based on a MultiSig approach.

Machine learning algorithms are used for anomaly detection, facial recognition, transaction monitoring; human verification provides additional support to the system for a high-level and trusted KYC mechanism. The community of Verifiers controls and manages the social verification of new users as well as access to a user’s KYC document.

These attest to the philosophy of Traceto.io that decentralization, privacy and regulatory compliance is a possibility.

Use: Traceto.io network will redefine how KYC is done. The solution is set to go beyond identity verification and screening for potentially high risk customers (politically exposed persons, terrorists and criminals) to conducting a robust continuous monitoring and vigilance on their clients for effective AML, CTF and KYC processes. This will become a de facto standard in the virtual world of cryptocurrency.

Market Demand: Traceto.io platform is very promising. The crypto economy is projected to rise further in coming years coupled with the increasing interest of authorities in crypto activities, crytocurrency projects and companies raising development funds through Initial Coin Offerings (ICOs) will increasingly seek competent KYC solution to comply with regulations. Traceto.io will definitely enjoy high patronage from new crypto clients thus increasing its client base in multiple folds.

Traceto.io Token (T2T)

Traceto.io token is the native token of the Tracetoken.io platform developed on the Ethereum-blockchain to execute transactions within the traceto.io ecosystem. It is an ERC20 token and is classified as a utility token. T2T will be used to incentivize users, prospective clients and partners, and also reward community verifiers.

T2T Tokenomics:

Token Name: Traceto.io

Ticker: T2T

Total Token Supply: 1 billion T2T

Token for Sale: 40% of total supply equivalent to 400 million T2T

Price per Token: 0.0000875ETH

Hard Cap: 35,000ETH

Private Sale Period: Currently running, ends 1 June 2018 (1200 SGT)

Public Sale Period: Scheduled to start on 8 June.

Final Thoughts

I am bullish on the success of this project. I will definitely rate the team excellent on project idea, team, product and solution. This is my personal opinion and does not constitute an investment advice. I suggest you read further on Traceto.io project using the following links:

Website: https://traceto.io
Whitepaper: https://traceto.io/static/wp/traceto_io_GBX_whitepaper_v1.30_26032018.pdf
Telegram: https://t.me/tracetoio
Bitcointalk ANN: https://bitcointalk.org/index.php?topic=2911588.0