The Shyft Network standardizes the KYC verification process, while providing the highest level of personal data protection for businesses, consumers, and governments across the globe. Functioning as a distributed network, Shyft has no single point of failure susceptible to security breaches inherent in traditional compliance systems.
By leveraging distributed blockchain ledgers and smart contracts, Shyft facilitates third parties, or Trust Anchors, as they collect user data off-chain using traditional processes to verify their legitimacy.
Verifications of the KYC data are then broadcasted to the Shyft Network, proving the information collected has been verified, thus enabling the Trust Anchor to discard the data collected and avoid traditional central databases.
The verification is then associated with an individual’s signature, recorded in the Shyft Blockchain as an immutable transaction, increasing their Reputation and Creditability Score.
Shyft eliminates the need for centralized data storage in identity verification using blockchain-based technology.
Tokens are required to participate within the Shyft Ecosystem. Tokens pass between Trust Anchors for access to and knowledge of KYC checks performed on customer profiles. These customer profiles are represented by Shyft public addresses which contain a history of KYC verifications.
Trust Anchors requiring KYC verification on a new customer may view a number of verifications on the Shyft blockchain for a particular KYC check. In order to understand details of a KYC check, the requesting entity will use Shyft tokens to request details from the owner of said verification.
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As KYC verification details can be shared between Trust Anchors, the cost of compliance is reduced. Every published verification on the Shyft Network gives owners the opportunity to recoup their initial compliance costs for tokens, via the sharing of their verification efforts.
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Less resources and capital are required to perform compliance or consumer onboarding if evidence exists that the KYC process has already been performed a number of times.
Global Creditability - Applying plausibility, believability, or likelihood that something can be credible, where regular evidence is lacking -- such as identity and trust.
Most consumers across the globe have access to financial systems due to verified identity, but millions of others do not. Regulatory bodies are confined to empowering only those they can legally verify.
To solve this global issue, Shyft believes a reputation layer needs to exist above KYC and Bitcoin, whereby regulatory bodies can identify and trust the unverified. Reputation and good behaviour metrics can lead to identification and trust, providing creditability and access for all.
The global remittance market is a great opportunity for RMT. Often senders have been KYC verified, but receivers have not, as many receivers do not have bank accounts and therefore lack any financial history. These “unbanked” are designated Level 0 KYC within Shyft (i.e. Full Name + Mobile Phone = Level 0 KYC).
As remittance services become Trust Anchors on the Shyft blockchain, they are able to allocate RMT tokens to senders and receivers for repeated good behavior. As receivers gain reputation tokens by receiving funds from KYC senders, they gain trust. With enough RMT tokens, regulatory bodies can begin identifying these individuals, enabling their participation within financial systems.