Digital ID Blockchain Identity Validation
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Solution Overview
Problem
Current identity verification methods, relying on physical documents, are insecure and require physical presence, making remote verification and efficient credit approval processes challenging, especially for organizations needing to comply with regulations like KYC and AML.
Innovation Solution
A system using digital IDs shared and trusted among a coalition of institutions, employing a blockchain network for secure identity validation, allowing users to authenticate and access information across multiple entities without additional documentation, facilitating immediate credit approval.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical identity documents are used for verification, then identity verification can be performed, but the verification process is insecure and requires physical presence
Solution Approach 1:
The patent replaces physical identity documents with digital copies stored on blockchain technology. The digital ID contains verified identity information that can be accessed remotely without requiring physical presence, while maintaining security through cryptographic verification and distributed ledger technology.
Solution Approach 2:
The patent substitutes the mechanical process of physically examining identity documents with an automated digital verification system. The blockchain-based digital ID enables automated verification through cryptographic proofs and smart contracts, eliminating the need for manual document inspection and physical presence.
2Reliability
If multiple levels of checks and approvals are implemented for credit decisions, then credit approval accuracy is improved, but the processing time increases
Solution Approach 1:
The patent performs identity verification and background checks in advance by storing verified identity information on the blockchain. When a credit application is submitted, the system can immediately retrieve and verify identity information without requiring multiple sequential approval stages, significantly reducing processing time while maintaining accuracy.
Solution Approach 2:
The patent implements an automated feedback mechanism where the blockchain system provides immediate verification results and credit decision feedback. The distributed ledger enables real-time validation of identity credentials and automated credit scoring, eliminating delays associated with manual review cycles and multiple approval layers.
Data Source
AI summary
The present disclosure involves systems, software, and computer implemented methods for performing identity validation using a digital ID shared and trusted among a coalition of institutions. One example method includes receiving, via a communications module and from a first consortium member system, a set of input credentials from a first consortium member system associated with an operation, where the set of input credentials is associated with a user. A digital ID is identified corresponding to the set of input credentials and the first user, wherein each digital ID uniquely identifies a particular user and corresponds to at least one user account associated with other consortium member systems in a trusted consortium network. Using the other user accounts, additional user account information associated with the user is obtained and used in a verification operation.