The new technology having the buzz around the world now is the blockchain technology and artificial intelligence which has signaled a new area of evolution. This technology is solving problems in different facets of human endeavors ranging from medicine, research, big data, financials, engineering, agriculture and so on.
The Know Your Customer (KYC) process is all about knowing the true identity of whom you are dealing with and to curb some unwanted activities. This is an important aspect of doing financial transactions in order to have a true identity of customers.
Various financial institutions including regulators are finding it difficult to stay abreast of emerging and ever-advancing technologies which often times are used for illicit transactions. Regulatory measures like the anti-money laundering (AMT) and Counter-Terrorism Financing (CTF) cost these institutions billions of dollars. With the boom of cryptocurrencies which has the peculiarity of preserving the anonymity of transacting parties has twisted the problems faced by the various financial institutions. However, the traceto.io project has devised a means by which the blockchain could be used by the financial institutions to improve on regulations.
The problem of know your customer (KYC)
(KYC) processes help an organization demonstrate to regulators that they have assessed various risks involved prior to and throughout any business relationship with the customer.
Among the reasons that financial institutions are reluctant to adopt the crypotcurrency based on blockchain technology is hinged around the inconsistent levels of adoption amongst crypto-related companies due to:
- A false assumption that anonymity overrides the need to comply with AML and CTF regulations;
- A low priority allocated to compliance due to its perception of being a cost center;
- A lack of budget and experienced compliance personnel to build watertight KYC processes.
The traceto project and the solutions as a decentralized digital KYC network will give ownership, control, and management of KYC processes back to the community. Traceto is here to create a virtual KYC platform which will give the decentralized ecosystem an avenue to adhere to the KYC related regulations. As the KYC standards are being developed in the cryptoworld, this project seeks to advance to a point where it will satisfy all upcoming regulations.
How it works
Traceto.io project will leverage on the decentralized attribute of the blockchain to provide a platform where Traceto coin, compatible with the ERC20 wallet, will be used to transact. This platform will be privacy serving and self-sustaining. The platform will be able to accommodate three parties:
Corporate Requester: This may be an ICO, Exchange, or other crypto businesses that requires KYC services of the traceto.io network. With a membership smart contract, a corporate requester is entitled to access users who have undergone the KYC process for a given period of time and can also onboard new user on the traceto.io network;
User: A user is the one who is onboard with the traceto platform by completely uploading Personal Identifiable Information (PII) and also passing the screening and liveliness test;
Verifier: A verifier is a trusted user who will stake some traceto token to access an opportunity to earn T2T by performing KYC related tasks. This level of trust is gained by undergoing stricter background checks and screening with ongoing due diligence. The Verifiers will serve as the gatekeepers to users uploaded data.
The blockchain will run on a decentralized app(DApp) which will provide an interface between the user and the traceto.io network. DApp will have three interfaces, Service provider DApp, Requester DApp and Community interface. These interfaces combined with the artificial intelligence will allow for the verification of new users as well as be providing platforms for effective transactions.
The Traceto Token(T2T)
All smart contract transactions in the traceto ecosystem will be done through the use of the T2T token which is built on the ethereum blockchain (ERC20 token). All unsold tokens will be burnt and the traceto token (T2T) will be the engine of the platform.
Team & Advisors
Website: https://traceto.io/
Whitepaper: https://traceto.io/static/wp/traceto_Whitepaper_v1_35_en.pdf
Telegram: https://t.me/tracetoio
Twitter: https://twitter.com/tracetoio
Author's Bitcointalk username: mayukus4life
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