A

Presentation On

E- KYC using Blockchain Technology

Presented by: Guided by:

Prof. V.A. Khairnar

Gangurde Priyanka S.
Kasture Nikita R.
Nemade Gunjali A.
Shaikh Saniya A.

LATE G.N. SAPKAL CO LLEGE O F ENGINEERING,

ANJANERI
Department of Computer Engineering
Academic year 2022- 23
Contents
● Introduction
● Literature Survey
● Problem Definition
● Objectives
● Proposed System
● Architecture diagram
● Algorithm
● Advantages
● Disadvantages
● Application
● Implementation
● Conclusion
● Future Scope
● References
 Introduction
● The Know Your Customer (KYC) process is an essential part of the
financial ecosystem. KYC.
● This process requires banks to verify and authenticate primary
documents. However, today's market is flooded KYC tools that
facilitate this process and share these documents with multiple
entities.
● Block chain technology with the concept of time- stamped
immutable ledgers and distributed systems, can effectively
facilitate banks to improve their KYC methods by enabling near
real- time data exchange between different entities for faster and
efficient validation ensuring data integrity significantly reduce
time and costs.
● The proposed KYC system is a Block chain- based decentralized
system that can be used to establish proof of identity for an
individual person and the data stored on the decentralized
application provides an additional layer of security.
 Literature Survey
Sr.n Year Title of Paper Description
o
Author
Name
Moyano, José KYC optimization using distributed This system allows for efficiency gains, cost
1 2017
Parra; Ross, O mry ledger technology reduction, improved customer experience,
and increased transparency throughout the
process of onboarding a customer.

Prof A. L. Maind, KYC Using Blockchain We have successfully completed project

2 2018
Pallavi Vijay documentation and also learned through
Gedam existing system and literature review, our
system KYC implemented in block- chain as
centralized KYC has lot of problems. Block-
chained KYC has become a blessing.
 Literature Survey
Sr. No. Year Title of paper Description
Author
name
3 Nikolaos Kapsoulis, 2020 Know Your Customer (KYC) The presented system introduces
Alexandros Implementation with Smart effectiveness and time efficiency of
Psychas, Georgios Contracts on a Privacy- O riented operations through its schema simplicity and
Palaiokrassas Decentralized Architecture smart integration of the different technology
modules and components. This developed
scheme focuses on blockchain technology as
the most important and critical part of the
architecture and tends to accomplish an
optimal schema clarity.

4 Sunitha N V , P 2022 KYC Verification Using The proposed KYC system is a Blockchain-
Ashwini , Sandhya Blockchain based decentralised system that can be used
to establish proof of identity for an individual
person.
 Problem definition
The current KYC process consists of an exchange of documents
between the customer and the financial institution that intend to
work together. The process includes the collection of basic identity
information from all beneficiaries to check for illicit activity and
‘‘politically exposed persons. The process also includes risk
management with regard to onboarding new customers, the
monitoring of transactions, and specific customer policies for banks.
The process is costly for financial institutions and may expose them
to large fines if it is not conducted in accordance with the existing
regulations.
 Objective

● To develop a system which has less expenses.

● Design and development of block chain based application in
distributed environment.
● To develop a system which is secure, and user friendly.
● The presented system introduces effectiveness and time
efficiency of operations through its schema simplicity and
smart integration of the different technology modules and
components.
 Proposed system
● The user installs the web app and registers by providing your
name, email, phone and password. The phone number is
verified via OTP. If the user had previously logged in, can log in
by providing registered e- mail and password at the time of
registration. This data is stored in the database.
● Once the user has logged in, she/he will be asked to fill out the
KYC form. This form requires the user to fill his/her name,
phone both of which are already filled in by the user and will
be retrieved from the database, in addition to the 10/12- digit
pan & Aadhar number.
● Once the user fills the KYC form, this data is temporarily added
into a database on the AWS server and is verified automatically
using PAN and Aadhar APIs.
● Algorithm used are SHA- 256 for encryption and SHA- 1 for
● After the details provided by the user are authenticated, all the
data provided by the user in the KYC form is then added into the
Blockchain. The user will be presented a list of banks wherein
which he/she simply has to tap on the list item of that bank. Once
the user clicks on submit, the details are stored in a database
along with some user details like name and phone. The data once
verified by the automated Aadhar and PAN APIs is added to the
blockchain.
Proposed Architecture Diagram

Fig: Architecture Diagram

Hardware and Software
Requirements
● Hardware requirements
Ram: RAM 4 GB or above
Hard Disk: 80 GB or above
Processor: i3 Processor or above

● Software requirements
Technology: Html, CSS, Bootstrap and Json, PHP
Operating system: Windows 7 or above
 Algorithm

● SHA- 1 for hash value

SHA- 1 works by feeding a message as a bit string of length
less than 2 64 2^ {64} 264 bits, and producing a 160- bit hash
value known as a message digest. Note that the message
below is represented in hexadecimal notation for
compactness. There are two methods to encrypt messages
using SHA- 1.
 Advantages
1. The entire process is highly cost effective for Banks.
2. The process is much smoother for customers as they need to
upload their details only once. Once these details are verified by
the concerned authorities for the first time, the use of public
and private key of the banks can be used by those financial
institutions for verification of that customer and retrieval of the
data of that customer from the blockchain.
3. The scope of popular KYC methods like KYC is limited to India,
as these methods base their verification process on the Indian
Govt. authorized Aadhar Card. Our solution, however, can be
applied globally without any restrictions.
4. If a customer wants to apply to any other banks, all s/he needs
to do is select it from the list of banks provided in the mobile
application. Thus, the entire KYC process can be limited to just
one tap, giving the ultimate convenience to customers.
 Disadvantages
1. Need a strong network connection.
Applications
1. Banks - : In banks this web application is used for securely
storing user documents and make the
transactions transparent.
2. Finance - : Finance sector uses this web application for the
preventing the fraudulent activities.
3. Organizations - : It helps the organizations to maintain their
reputation.
4. Insurance - : KYC in insurance is very mandatory compliance
regulated by the Insurance Regulatory and Development
Authority of India (IRDAI).
5. Mutual Funds - : Any bank, lending institution, investment
platforms, mutual fund companies, insurance firms: basically
any company that provides financial services needs to do a
background check of its customers.
Implementation Module

22
23
24
2021- 22 25
2021- 22 26
2021- 22 27
2021- 22 28
 Conclusion

We have successfully completed project module user

creation , bank creation & account creation and also learned
through existing system and literature review, our system KYC
implemented in block- chain as decentralized KYC. The
combination of Block- chain and KYC is going to numerous
benefits to humans and information system.
 Future Scope
In the future we will add Machine learning concepts and
algorithms for better performance of our system as compared to
the existing system.
 References
1. Bharti Pralhad Rankhambe and Dr. Harmeet Kaur Khanuja “O ptimization of the KYC
Process in the Banking Sector using Blockchain Technology ” 8 February 2021E- ISSN
2277 – 4106, P- ISSN 2347 – 5161.
2. Nikita Singhal, Mohith Kumar Sharma, Sandeep Singh Samant, Prajwal Goswami and
Yammanuru Abhilash Reddy“Smart KYC Using Blockchain and IPFS” https://
www.researchgate.net/publication/340995551April 2020, DO I:
10.1007/978- 981- 15- 3125- 5_9.
3. Ashok Kumar Yadav , Ramendra Kumar Bajpai ”KYC O ptimization using Blockchain
Smart Contract Technology “ International Journal of Innovative Research in Applied
Sciences and Engineering (IJIRASE) - Volume 4, Issue 3, DO I: 10.29027/
IJIRASE.v4.i3.2020.669- 674, September 2020.
4. Abdullah AI Mamun, Mohammad Abu Yousuf, M. Shamim Kaiser “Secure and
Transparent KYC for Banking System Using IPFS and Blockchain Technology”, June
2020, DO I: 10.1109/TENSYMP 50017. 2020.9230987.
5. E. Sai Vikas Reddy, Nikhil Suhag, Manjunath S “Know Your Customer (KYC) Process
through Blockchain”,06 June 2020, International Research Journal of Engineering and
Technology (IRJET), Volume: 07, p- ISSN: 2395- 0072, e- ISSN: 2395- 0056.
6. Norvill, Robert, Mathis Steichen, Wazen M. Shbair, and Radu State. "Blockchain for
the Simplification and Automation of KYC Result Sharing" In 2019 IEEE International
Conference on Blockchain and Cryptocurrency (ICBC), pp. 9- 10. IEEE, 2019.
7. Nazir Ullah, Kawther A. Al- Dhlan, Waleed Mugahed Al- Rahmi “KYC O ptimization by
Blockchain Based Hyperledger Fabric Network”, March 2021, 4th International
Conference on Advanced Electronic Materials, Computers and Software
Engineering (AEMCSE), DO I: 10.1109/AEMCSE51986.2021.00264.
8. José Parra- Moyano, Tryggvi Thoroddsen, O mri Ross “O ptimized and Dynamic KYC
System Based on Blockchain Technology”, January 2019, International Journal of
Blockchains and Cryptocurrencies, DO I: 10.1504/IJBC.2019.10021398.
9. Vikrant Kulkarni, Awadhesh Pratap SINGH “Sustainable KYC through Blockchain
Technology in Global Banks”, July 2019, Annals of Dunarea de Jos University of
Galati Fascicle I Economics and Applied Informatics, DO I: 10.35219/eai1584040929.
10. Prof A. L. Maind, Pallavi Vijay Gedam, Snehal Kashinath Chavan, Chitrali
Dnyaneshwar Shinde, “KYC USING BLO CKCHAIN ” 2018,International Journal for
Research in Engineering Application & Management (IJREAM), ISSN :
2454- 9150 .Duan Yongrui, Xu Chao and Huo Jiazhen, "Dynamic Pricing and
Inventory Management under Service Level Constraints[J]", O perations
Research and Management, vol. 28, no. 05, pp. 1- 7, 2019
THANK YO U…