Traceto: The Decentralized KYC-Compliant Network

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The banking industry has been faced with many financial problems that have led to misconduct in financial affairs. Some cryptocurrencies are not left out as they have been affected by market misconduct measures.

Many regulatory measures were initiated to tackle these problems which cut across Anti-Money Laundering (AML) and Countering Terrorism Financing (CTF) activities. These had cost the banking and finance industry about $321 billion.

The Know Your Customer (KYC) process was the foremost and most utilized initiative that aimed at protecting financial platforms from Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) violations.

Despite the problems it intended to solve, the Know Your Customer (KYC) process ended up losing its value and users lacked trust in its adoption. The failure of KYC was basically because of the widespread falsehood that anonymity has the tendency to override compliance to the AML and CTF regulations. The allocation of low priorities to compliance, limited finance and inexperienced compliance personnel contributed to the massive failure of KYC.

With its advanced leverage in the financial and blockchain frameworks, Traceto came up with four technical questions that will help in solving the KYC problems. These questions are:
• Who are you?
• Who are you not?
• What did you do?
• Are you still who you say you are?

To solve the KYC problems, Traceto had to determine and verify identifies through the concept of Who are you? Who are you not allows Traceto unveil Politically Exposed Person (PEPs) and issue sanctions to user profile that have a connection to adverse media. The concept of what did you do allows Traceto monitor transactions and also verify fund sources. Finally, are you still who you say you are concept allows Traceto perform ongoing due diligence in respect to client and activities.

KYC Problems
The Know Your Customer (KYC) feature in most financial platforms such as the banking industry and the blockchain technology was meant to be an exclusive insight into the technicalities of a particular organization. Through KYC, customers and intending investors can access an organization’s risk handling measures and other regulatory initiatives such as Anti-Money Laundering (AML), Counter Terrorism Financing (CTF), Credit Worthiness and Product Sustainability. An organization’s ability to demonstrate a high diligence in this regard will be a good prove to regulators and will lead to further establishment of a business relationship with prospective customers.

However, the KYC standard had not been fully met up with by most financial platforms and this has caused numerous issues in these platforms with the estimated loss of about $321 billion by these platforms.

The Global Financial Crisis motivated many financial platforms and finance regulators to make immediate improvements in their KYC standards. The actions of ISIS and other acts of terrorism had caused many financial bodies to tilt much attention to the AML and CTF processes which are major components of the KYC process that had often been neglected.

Although the current KYC model seems efficient, three main issues with it:

• Manual Processing: In a world that is already becoming fully digitized, most KYC processes are still manually processed and this does not augur well for the system. Customers are compelled to fill many declarations before access will be granted to their desired service.

With the multi-functioning of these KYC processes, they are bound to be errors just as loss of revenue is imminent; especially as customers find the manual processing too tedious.

• Analogous: The current KYC model is not digitized and so, its processes are physically documented. It also faces compatibility risk as most parent organizations using the KYC processes are already making plans to move towards a digitized framework.

• Electronic KYC: Continuity of terrorism attacks have been a threat to financial platforms that are reluctant to upgrade to the Electronic Know Your Customer procedure. The requisition of due diligence on customers had been viewed by regulators as a boost to terrorism acts.

In general, the current KYC model which is not hinged on the blockchain platform does not provide a better prospect for the future of KYC. It is believed that the integration of blockchain related technologies coupled by increasing crypocurrency and digital assets will greatly improve the performance of the KYC procedure by providing more efficient AML, CTF and KYC procedures.

The Way Forward

Traceto provides a better prospect in respect to the current KYC process we have. It aims at providing a decentralized and self-sustaining platform that will solve the myriad of KYC problems such as data soiling, social engineering vulnerability, lack of reusable KYC and data security.

Traceto also came up with a Decentralized Application (DApp) ecosystem which will serve as the user’s interface to the Traceto network. It also has the Traceto Token (T2T) hinged on the ERC20 standard which will be issued to users. The T2T token is a utility token and is the primary token for accessing Traceto’s Smart Contract feature.
Traceto also comprises of an Artificial Intelligence which uses both the deep learning and machine learning in democratizing the Know Your Customer process.
Traceto Token (T2T)
Traceto has an ERC20 token standard utility token which is the primary token that users can use to access Traceto’s Smart Contract. The T2T token is also the medium of exchange for existing Traceto participants and can be used for payments by external networks that use the Traceto Network components.
The Traceto token (T2T) can be used as an incentive if the situation demands and also features a projected high demand and ease of on boarding features.

Token & TokenSale Details

Token Name: Traceto Token (T2T)
Token Type: ERC20
Platform: Ethereum (ETH)
Accepted: ETH
Hard Cap: $30,000,000
Token Price: 1 T2T = 0.0000750
Whitelist/KYC: YES

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