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The Mutual Distributed Ledger-Based Identity Management Solution

The Challenge

  1. The aggregate size of money laundering today = 2% of Global GDP = $1.5 Trillion (PwC, 2016).
  2. Prevention is a priority for policy makers; 1 in 5 banks have experienced enforcement actions by a regulator (PwC, 2016).
  3. The resources spent on ‘know your customer’ (KYC) and anti-money laundering (AML) practices continue to rise (KPMG, 2014).

The Opportunity

  1. 89% of corporates still say they do not have a good ‘know your customer’ experience (Thomson Reuters, 2016).
  2. The same investigations conducted on a single individual or firm by multiple parties; costing more, taking longer, and inconveniencing clients.
  3. It is estimated that mutual distributed ledger (aka blockchain) based identity systems could generate $3-5 billion in annual cost savings (Goldman Sachs, 2016).

Introducing IDchainZ

IDchainZ is a working proof of concept built using ChainZy mutual distributed ledger technology to allow multiple parties to add, certify and exchange KYC and AML documentation. The IDchainZ identity system is globally available, scalable, and subject centred.

Three types of parties exchange information:

  • Subject: Individual on whom KYC / AML checks need to be conducted.
  • Certifier: The organisation certifying the Subject.
  • Inquisitor: The organisation conducting KYC/AML checks on the subject.

The document ring structure developed for IDchainZ provides the opportunity to organise documents logically and to set permissions. With sprites, pieces of self-executable code, subjects may set time and use restrictions on inquisitors for access to their documents.

 

IDchainZ Ring Structure
The phone app – different permissions for different parties

 

Picture1
Subject tracks Inquisitor’s access to their documents
The system uses two distinct mutual distributed ledgers:

  • a content ledger holding the documents individually encrypted, and
  • a transaction ledger holding the documents’ keys on a series of connected and unconnected “document rings.

 

Key Rings
Connected and Unconnected Document Rings

 

Rings have a hierarchy. Master rings are aware of all their sub-rings, but the sub-rings know nothing about their parent – or even if they have one. Each document ring is a self-executable program held on the transaction ledger. Parent rings can set access conditions for sub-rings. Sub-rings can be programmed to have use limits and/or a self-destruction date.

 

The Proposed Process

Image Border Editor: https://www.tuxpi.com/photo-effects/borders

 

Android users can try the IDChainZ mobile app by joining the testing program here:
https://play.google.com/apps/testing/com.zyen.metrognomo

Download a short brochure – IDchainZ Flyer V2.1

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41 Lothbury, London EC2R 7HG

+44 (0) 207 562 9562