Deloitte will issue reusable digital credentials to support KYC (Know your customer) and KYB (Know your business) processes by integrating KILT blockchain technology. Primarily, this will eliminate paper-based certificates and streamline data management, benefitting both customers and businesses. But how exactly? Let’s start by understanding reusable digital credentials.
Reusable digital credentials: the basics
Digital credentials are digital versions of traditional documents like passports, driver’s licenses, or diplomas. Reusable digital credentials means that they can be used multiple times across different platforms or services.
Unlike traditional identity verification methods where you need to provide the same information multiple times, a reusable digital credential allows you to share verified information once and then reuse it for various purposes. This eliminates the need for repetitive verification processes, saving time and effort for both individuals & businesses.
These credentials are stored securely in a digital wallet and unlike physical documents, digital credentials are tamper-proof and can be verified instantly.
As such, reusable digital credentials represent a shift in identity verification.
Currently, traditional verification methods are employed such as paper-based documents and manual checks. Traditional KYC and KYB processes are inefficient and create unnecessary friction. Verifying identities through paper-based documents is time-consuming and prone to errors. Customers are burdened with repeatedly providing the same information to different organizations. This not only annoys users but also poses data privacy risks.
These challenges underscore the need for more efficient and secure verification solutions, which is where blockchain technology and digital credentials come into play.
Benefits of digital credentials:
- Efficiency: Streamlined verification processes for both individuals and businesses.
- Enhanced security: Reduces the risk of identity theft and data breaches.
- User control: Individuals retain ownership and control over their personal information.
- Cost reduction: Reduces verification costs for businesses.
About the partnership: Deloitte and KILT Protocol
KILT Protocol by BOTLabs GmbH, is the technology enabling Deloitte’s reusable digital credential solution. This blockchain-based platform provides the infrastructure for creating, managing, and verifying digital credentials. KILT as a Polkadot parachain, offers scalability and security.
Deloitte is also providing a user-friendly credential wallet, simplifying the adoption of reusable digital credentials. By eliminating the need for blockchain expertise, the company is making this technology accessible to a broader audience.
It is important to note that the crypto enthusiasm shown by Deloitte is not new. Deloitte recently posted job openings for over 300 crypto-related positions. This attitude is in stark contrast to that of the other Big Four firms which have shown lukewarm interest in blockchain.
Benefits for customers
- Convenience: Users can access their credentials anytime, anywhere, without carrying physical documents.
- Security: Blockchain ensures the integrity and authenticity of credentials, making it impossible to tamper with.
- Control: Individuals retain ownership of their data and can selectively share information.
Benefits for businesses
- Efficiency: Streamlined verification processes reduce operational costs and improve customer onboarding.
- Risk mitigation: Reduced reliance on paper documents minimizes the risk of fraud and data breaches.
- Enhanced customer experience: Faster and more convenient verification processes lead to increased customer satisfaction.
The bottomline
The adoption of reusable digital credentials has the potential to transform many industries and reshape the digital landscape. Blockchain identity verification can streamline regulatory compliance in banking and DeFi, verify age for online purchases, facilitate secure logins, and even support fundraising initiatives.
As more organizations adopt this tech, we can expect to see a shift in how identity is managed and verified.
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