According to Article 6 of the Universal Declaration of Human Rights, “Everyone has the right to recognition everywhere as a person before the law.” However, around one-fifth of the world’s population (1.8 billion people) lives without a legal identity. This excludes them from modern society and deprives them of access to healthcare, education, shelter, justice, and other government services.
The existing KYC systems are inefficient; they involve a costly, drawn-out practice where specific documents are shown and some background check or verification takes place. According to research by a leading corporate brand, Thomson Reuters, it takes 32 days to complete KYC checks. Furthermore, large financial institutions are routinely spending between $900 million and $1.3 billion per year on compliance-related ventures. This is because we do not have a digital identity. Another drawback of the inexistence of a digital identity is identity theft. Millions of people become victims of identity theft each year; last year the number was 15.4 million.
These alarming figures indicate the need for digital identity to modernize identity management. We believe that blockchain can transform the KYC paradigm, making it better and accessible to all.