Today South Korea’s Shinhan Bank announced it has started to deploy a blockchain-based decentralized identity (DID) solution. Initially, the identity will be used to change the login method for online banking, but there are plans to use it for know your customer and more.
Clients can submit personal information using a mobile identity app ZZeung with the data encrypted and saved on the phone. The process takes a photo of the person in real-time and accessing the data requires a fingerprint scan. The identity is verified using a Korean telecom service and a verifiable credential is issued on a public blockchain. Personal data is not stored on the blockchain, which is used for the authentication process. The data can be used with Shinhan’s mobile banking application, SOL.
In the near future, there are plans to use the ID for password changes and know your customer (KYC) verification. If one bank has verified the information, then the data can be sent to another bank or insurer, and the recipient only needs to use their fingerprint. This means customers don’t have to do cumbersome identification processes with multiple organizations. To verify and prevent forgery, a private blockchain is used for this functionality.
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