Japan Tech Giant GMO Internet Releases Blockchain KYC Software

Announcements, Blockchain, Innovation | October 20, 2017 By:

Japanese Internet conglomerate GMO Internet has released an open source know-your-customer (KYC) software based on blockchain technology. The KYC software is part of the fifth phase of the GMO Blockchain Open Source Software Project (GMO Blockchain OSS).

GMO said the new KYC software reduces human and financial costs of identity verification through use of the blockchain. The mechanism of “KYC” takes advantage of the characteristic of the blockchain; that is, only the owner of the “key” corresponding to the address can initiate processing for that address. By recording a user’s personal identity information as authenticated by a certification body on the blockchain along with the user’s blockchain address (a public key), services such as banks can easily and quickly confirm identity.

Once the identity is authenticated by the certification body, it can be verified through verification of the personal information provided by users and the information recorded on the blockchain. The company said this mechanism can be applied to a use that requires identity verification, such as opening a bank account, creating a credit card, and trading at a token exchange. It leads to a reduction in process to verify identity through sending written documents and a reduction in monetary costs.

GMO Blockchain OSS is currently cooperating with GMO GlobalSign in order to develop smartphone applications for certification bodies and to build the proof of concept.

Last month, GMO Internet released an open source blockchain solution that allows local communities to issue their own crypto tokens or points. Called Region Token, the developers claim this blockchain solution will help municipalities, local companies and shopping districts to revitalize commerce.

The Japanese technology giant also started its own bitcoin mining operation in its home country. GMO plans to have a large bitcoin mining operation running by the beginning of next year.