DECENTRALIZED KYC FRAMEWORK FOR EFFICIENT CREDIT ALLOCATION IN BANKING

In the financial industry, banks' adoption of the Know Your Customer strategy improves these businesses' operational effectiveness.The information obtained from the customer throughout the KYC process may be used to prevent potential money laundering, fraud, and other illegal endeavors.Most financial organizations have their own KYC processes in place.A centralized system also makes it possible for several financial institutions to work together and carry out operations.In addition to these two situations, a blockchain-based system can also be used to carry out KYC procedures.The decentralized network of the blockchain will be extremely transparent, allowing all pertinent stakeholders to validate and verify customer data in real-time.Furthermore, the blockchain's privacy and immutability guarantee that customer data is safe and unchangeable, eliminating the possibility of data breaches.By doing away with needless paperwork and data submissions, based on a KYC can further enhance the customer experience.This paper suggests a powered by blockchain KYC method to gather limit, risk, and collateral information from customers after banks approve transactions.Financial institutions can read and write financial data on the blockchain network thanks to the Ethereum-based method.This KYC approach creates an open, flexible, and quick framework between financial institutions.Solutions for the Sybil attack, one of the most serious issues in these networks, are also covered.1. INTRODUCTION Distributed record keeping by numerous nodes in a decentralized network is known as blockchain.A copy of the complete blockchain of records is kept on file by each of these nodes.Blockchain seems to have an impact on many conventional business practices because of its unique qualities, which include decentralization, transparency, resilience, auditability, and security.Bitcoin has raised awareness of blockchain, despite the fact that it is an old topic.The paper "Bitcoin: A Peer-to-Peer Electronic Cash System," authored in 2008 by Satoshi Nakamoto or a group of people, is the technical document behind Bitcoin.The article suggests utilizing blockchain technology to transfer digital assets without the need for a financial middleman.The article provides a thorough explanation of how to resolve the double spending issue, which is one of the most significant issues with electronic money transfers.Blockchain technology, which offers a distributed ledger structure, is the foundation of this transfer system's infrastructure.In the blockchain, every network user is