The promise of identification services was to create a more reliable and efficient way to verify our IDs while protecting our privacy. The hope was that the Internet would arrive with a transparent and streamlined KYC process. In theory, a single technology would have secure access to our personal data and provide it on demand to services per our agreement. Instead of hundreds of verification processes, we would have one. Instead of days of waiting for approval, we would wait minutes. Instead of exposing our data to thousands of platforms for an indefinite period, we would keep it private and under control.
That didn’t happen. Instead, the identification ecosystem that has evolved over the last decade is full of middlemen, is complex in nature and has dubious processes. We lost our privacy, our data became target for hackers, we pay never-ending fees, and suffer slow speeds. Companies have spent billions on compliance while their experience hasn’t improved a bit. This paper will review the current state of ID verification tech focusing on KYC process. It will outline a new solution that creates a transparent and efficient Blockchain-based service for users and service providers.
We live in a brand new digital world. More than that, we are the grassroots of Web3, experiencing increasing power and influence of Blockchain-based technologies on our day-to day life. According to recent MarketsandMarkets report, Blockchain technology market size will be worth 2.3 billion by 2021, increasing at a compound annual growth rate (CAGR) of 61.5 percent. Within Blockchain, the digital identity market is expected to grow at the highest rate as the Blockchain would make digital identities more secure and efficient, resulting in seamless signons and a reduction of identity fraud. In addition, the global Identity Management market worth is projected at $14.82 billion by 2021, up from $8.09 billion in 2016.
In fact, Bitcoin wallet and trading platforms are experiencing an explosive growth in their user bases. In June, Coinbase added 1M new users, demonstrating a massive increase in its user base in a relatively short period of time, and the rate of growth doesn’t appear to be slowing down. The number of Blockchain wallets has been growing since the creation of the Bitcoin virtual currency in 2009, numbering approximately 15 million Blockchain wallet users in September 2017. And this is only the tip of the opportunity iceberg.
As the world goes digital, ID verification penetrates a vast range of service providers - from small businesses to large organizations across dozens of industries face the need to improve identification processes and provide reliable data protection. From banking ($580B in credit cards in 2016, $1656 in E-wallets in 2017) to online investing ($146B in 2016)7, from insurance services ($922,6B in 2016) to gambling ($19,7B), from healthcare ($9.8B in 2017) to legal services ($168B in 2016). According to KYC.LEGAL research, every day 100,000 Blockchain users pass through KYC verification.
Recently, increased importance of ID verification improvement powered various legislative activities in the field. The major one, called the General Data Protection Regulation (GDPR) has been ratified by the European Parliament in April 2016 and will take effect in May 4 2018. Focusing on responsibility for personal data management, it enforces new obligations regarding estimation of high-risk methods of personal data proceeding (Privacy Impact Assessments), influence on users, appointment of a designated executive (Data Protection Officer), awareness during the selection of mediators taking part in data proceeding, and record of all actions of personal data proceeding.
We believe that current state-of-art ID verification solutions represent a promising opportunity: the market is clearly large and rapidly growing; ID verification became an indispensable part of almost every business and every industry; on top of that, digital identification faces multiple challenges which, if solved, will make life easier for millions of users and thousands of businesses. Let’s break some of those challenges down.
Bad user experience. Overall experience is currently pretty annoying. Imagine, you just registered on Poloniex. You are going through registration on Kraken. You are required to submit your information all over again, attach a photo of your ID and wait - sometimes minutes, sometimes days or weeks.
On top of that, there is an obligation to provide tons of personal data even though only part of it gets verified. Services rely on complex personal data verification algorithms, which sometimes demand a lot of private information. However, we all would prefer to provide services just the bare minimum. One example is adult websites that post 18+ content. Now, in order to access the website, you will be requested to provide your complete ID information or authorize through your social network profile despite the fact that only year of birth is truly required.
High user verification costs. User verification on average costs between $10 and $1500 per KYC13, depending on the service. It also takes up to 2+ days on average and at times amounts to 6 weeks in processing.
Inauthentic user data. Due to increase of fraud risk, services are forced to implement complex personal data verification algorithms. Nevertheless, in most cases they fail in creating a trustworthy verification process, which leads to:
Data storage security and identification costs. Every time we apply to join an exchange, to link our new wallet to a bank account, or to use a digital service, both parties are required to engage in the verification process over and over again, providing and requesting same data and as a matter of fact spending our efforts and time inefficiently. Storage of personal data in multiple databases is not cheap and increases risks of fraud, hacking and illegal distribution of user data.
- 80% ICO
- 15% KYC team
- 5% Operation cost
|Accepting||BTC, ETH, LTC, DASH, ZEC, Fiat|
|Soft cap||1,000,000 USD|
|Hard cap||35,000,000 USD|
- Daniil Rausov - Founder
- Sergei Bekrenev - Co-Founder
- Nick Evdokimov - Strategy Director
- Artem Haritonov - CTO
- Matteo Rossant - CBDO
- Eugene Zonov - CEO
- Stanislav Bulatkin - Tech Lead
- Allan Young - Advisor
- Feroz Sanaulla - Advisor
- Vibhuti Jha - Advisor
- David Drake - Advisor
- Alina Suslova - Advisor
- Kirill Gusev - Advisor
- Chris Fure - Advisor
- Erik Wachtmeister - Founder, Best of All Worlds and A Small World (Stockholm, New York)
- William Davis III - Former Chief Cybersecurity Officer Daopay, Global Payments (New York)
- August 2017
- Start of KYC.LEGAL application development
- October 2017
- KYC.LEGAL application beta launch
- November 2017
- ICO start
- Compaign in Hong Kong & Madrid
- February 2018
- ICO closure
- Product launch
- Campaign in Bejing & Shanghai
- KYC.LEGAL to publish company's development plan, key goals and milestones
- May 2018
- Campaign in New York and Sao Paolo
- July 2018
- KYC token to be listed on exchanges
- August 2018
- Campaign in Moscow, Saint Petersburg and Singapore
- November 2018
- Campaign in Tokyo, Seoul and Chuntsin
- December 2018
- KYC.LEGAL acquiers 10,000,000 users and over 100 service providers in 2018 with first 1,000,000 users to be verified at no charge
- February 2019
- Campaign in Berlin, Paris, Rome, London and Istanbul
- May 2019
- Campaign in Delhi, Mumbai and Bangkok
- By 2020
- Over 20,000,000 users acquired