Regulatory organs have been pushing hard on the finance sector lately amidst growing terrorism threats and money laundering scandals. Blockchain- and cryptocurrency-based businesses are obviously first in the firing line here, and growingly stringent compliance standards have become a challenge to the whole blockchain world.
The harder the challenge, the bigger the market around it. The squeezing freedom of blockchain-based operators has inevitably resulted in the growing demand for Know-Your-Customer services. One of the biggest compliance and regulatory technology companies in Asia, Cynopsis Solutions, has recently launched their daughter project, Traceto.io, to further improve the KYC process for businesses where blockchain plays a main or significant role.
KYC Network
Traceto.io is designed as a decentralized network based on the KYC framework of Cynopsis Solutions, the company behind the project. The core technology is a combination of smart contracts and Artificial Intelligence, allowing to make Anti Money Laundering (AML) and Counter-Terrorism Financing (CTF) compliance less costly and provide an ongoing due diligence process which is transparent to regulating bodies.
Traceto platform and T2T token
The Traceto.io ecosystem is built around three types of participants:
Corporate requesters such as ICOs, exchanges, and other blockchain-based businesses that will get access to the list of users who have been identified through KYC via a membership smart contract.
Users who have been onboarded on the platform by providing personally identifiable information and through screening and liveliness tests.
Verifiers who perform KYC-related tests to earn T2T. These users undergo stricter and more frequent checks.
Traceto.io key features
Complete original KYC Framework
Traceto.io is based on the KYC framework built by Cynopsis Solutions. This framework handles the KYC process through the following four concepts and relevant steps:
Who are you? — Determining and verifying identity;
Who are you not? — Making sure that the client is not a person under sanctions or a terrorist;
What did you do? — Reviewing the history of transactions and fund sources;
Are you still who you say you are? — Ongoing due diligence to keep the identity profile updated.
AI + smart contracts
Machine learning will be used to bring more democracy into the KYC process. AI tools, such as facial recognition, will be subject to control and improvement by the community.
Competition
A chart in the Traceto.io whitepaper features three existing similar services (Civic, uPort, and SelfKey) and how they compare to the project. The key competitive advantage of Traceto.io is that the company behind it has an extensive background in the target market. Cynopsis Solutions have been in the regulatory compliance for the past five decades. Throughout this period, they have built a strong presence in the crypto market, having provided services to more than 200 global ICOs and blockchain-based businesses.
Traceto.io has one direct competitor, Shyft, which has been live since February. They also use machine learning, but unlike Shyft, Traceto.io focuses on the community, placing it over the AI in the system’s hierarchy. We couldn’t find information on the Shyft ICO, and it seems to have never been undertaken.
T2T Token sale
Conclusion
Designed by a well-established company that has been in the RegTech business for decades, Traceto.io looks like a promising project. The platform is being built upon a great heritage that includes unique experience, big client base, and relevant tools and resources. Their only direct competitor has been warmly welcomed as a long-awaited service by the blockchain community, which makes us think that Traceto.io, with its unique features and proven instruments, is going to be an even bigger success. The founding team is led by the co-founder of Cynopsis Solutions, and includes experts from the companies that also have relevant experience in KYC. The Traceto.io whitepaper demonstrates deep understanding of the industry and technology. As a bonus, they have great followings on Twitter and Telegram. Considering all this, the future of this project looks rosy to us. What can possibly go wrong? We will see in July.
Links:
Website: https://traceto.io/
Whitepaper: https://traceto.io/static/wp/traceto_Whitepaper_v1_35_en.pdf
Telegram: https://t.me/tracetoio
Twitter: https://twitter.com/tracetoio
Facebook: https://www.facebook.com/traceto.io
Author: https://bitcointalk.org/index.php?action=profile;u=2049300
Disclaimer:
This review by Bonanza Kreep is all opinion and analysis, not investment advice.