This page shows the " A new framework to enhance efficiency by 'trusted transactions based on KYC/KYB'" explored and tested by DENTSU SOKEN INC., in the 2023 "Use Case Demonstration Project of the Trusted Web".
 
Please click on the links at the bottom of this page to learn more about the details of the demonstration.

At present, paper applications and verification works related to personal identification are still the standard practice. Trusted Web enables the issuance of VC for KYC/KYB, allowing for the reuse of identity verification data and digital verification. This advancement facilitates the adoption of trusted transactions, leading to an expected acceleration of trust-based transactions.
 

Current issues and What Trusted Web Solves

Current Issues (Pain Points)

• Holder is required to register corporate information such as the company name and primary business location with various government agencies. Each time they apply for something, they must register their business location information again.
• Verifier receives application information from the Holder and obtains necessary information for transactions from Issuers, which can be public or private organizations. Due to variations in the sources of proof and acquisition procedures, the process is complex and time-consuming.
• In addition to verifying the Holder (corporate entity), Verifier also needs to conduct identity verification (KYC) for beneficial owners applying separately.

⇒A mechanism is needed to centrally obtain the necessary information
for KYB (Know Your Business) from public and private institutions.

What Trusted Web Will Solve

• Issuer conducts KYC and KYB based on Holder's request and issues VC for KYC and KYB. Holder presents the VC for KYC/KYB to Verifier as a VP and applies for transactions.
• Potential VCs that may facilitate trusted transactions are organized, and discussions with issuing entities and companies in need are conducted.
• A prototype system is developed for the purpose of extracting challenges when applying Trusted Web to business processes, and hearings using demo screens are conducted.
• Contributions are made to the implementation aspect of the OpenID4VC family specifications. Additionally, implementation from VC issuance to presentation based on the latest specifications is carried out.

⇒By ensuring KYC/KYB, Trusted Web's social implementation is brought closer to reality, and challenges in applying business processes are addressed.

Verification Data

• In this project, we focused on the use case of opening corporate accounts at financial institutions. We conducted verification from the perspective of business feasibility and the utilization of identity and business information through Trusted Web, as well as the digitization of verification for efficiency improvement, particularly focusing on the feasibility of personal verification VC.
• On the technical side, we implemented the exchange of VCs using the OID4VC family and verified wallet secret key management using the Threshold ECDSA Signature API.
• In the table below was conducted with the cooperation of Dentsusoken, as well as ACSiON, Authlete, and other entities involved in this project.

Business Validation (including UX/UI) and Implemented Technology

• Development of UI for a system implementing use cases for opening corporate accounts at financial institutions, along with As-Is/To-Be UX analysis
• Following the viewing of the UI demo videos, conducting interviews with personnel from financial institutions.
• Consideration of the identity verification VC (KYC/KYB VC) and examination of business models
• Development of a Real Wallet (OID4VC) demo application connected with Authlete.

Main Achievements

• Conducted interviews with financial institutions and other entities using demo screens for opening corporate accounts at financial institutions. As a result, confirmed the feasibility of establishing business flows using Trusted Web.
• Presentation of draft items for personal verification VC (KYC/KYB VC) and proposed business model ideas.
• Development of a demo application for a wallet based on the latest OID4VC family specifications.
• Recommendation for the formulation of governance rules compatible with eIDAS regulations.

Documents

•       summary（Link）
•       demonstration（YouTube1/5、YouTube2/5、YouTube3/5、YouTube4/5、YouTube5/5）