IOT-ENABLED SMART E-KYC SYSTEM WITH PRIVACY PROTECTION AND BLOCKCHAIN-BASED DATA SHARING

Abstract

This invention presents a decentralized, privacy-protected smart e-KYC system (100) that integrates Internet of Things (IoT) devices with a consortium blockchain (5) to streamline the Know Your Customer (KYC) process. The system (100) includes IoT-enabled data capture, an intelligent IoT gateway (2) for data extraction, and a regulator node (3) for data verification and encryption. Verified KYC data is stored in a distributed repository (4), and a unique hash is recorded on the consortium blockchain (5), enabling future verification without requiring complete KYC documentation. The system (100) employs identity-based proxy re-encryption (IBPRE) to facilitate secure, privacy-preserving data sharing between financial institutions. This method enhances data security, reduces human intervention, and eliminates redundant KYC verifications, providing a robust solution for sectors such as banking, insurance, digital payments, and government identity verification services. By using a decentralized approach, this system (100) mitigates risks associated with central data storage, offering a secure and efficient alternative to traditional KYC methods.

Specification

Description:This invention presents a decentralized, privacy-protected smart e-KYC system (100) that integrates Internet of Things (IoT) devices with a consortium blockchain (5) to streamline the Know Your Customer (KYC) process. The system (100) includes IoT-enabled data capture, an intelligent IoT gateway (2) for data extraction, and a regulator node (3) for data verification and encryption. Verified KYC data is stored in a distributed repository (4), and a unique hash is recorded on the consortium blockchain (5), enabling future verification without requiring complete KYC documentation. The system (100) employs identity-based proxy re-encryption (IBPRE) to facilitate secure, privacy-preserving data sharing between financial institutions. This method enhances data security, reduces human intervention, and eliminates redundant KYC verifications, providing a robust solution for sectors such as banking, insurance, digital payments, and government identity verification services. By using a decentralized approach, this system (100) mitigates risks associated with central data storage, offering a secure and efficient alternative to traditional KYC methods. , C , Claims:1) A decentralized, privacy-protected, and IoT-enabled smart e-KYC system (100) based on a consortium blockchain (5), comprising:
at least one IoT device (1) configured to capture and forward customer KYC data including identity cards, residential proof, and income statements;
an intelligent IoT gateway (2) comprising an extraction module, which extracts relevant KYC information from the forwarded data;
a regulator node (3) that verifies the extracted KYC information and encrypts the data using the customer's identity as a public key;
a distributed repository (4) for storing the encrypted KYC data, wherein the distributed repository (4) returns a unique content-addressable hash corresponding to the encrypted data;
a consortium blockchain (5) for storing the hash of the verified e-KYC records, wherein the customer is provided a copy of the hash for subsequent verification with financial institutions;
a verification mechanism (6), wherein subsequent financial institutions verify the hash of the e-KYC record on the blockchain using the customer-provided hash; and
an identity-based proxy re-encryption (IBPRE) mechanism (7) configured to enable trusted sharing of KYC records between financial institutions without revealing the underlying plaintext to intermediaries or requiring the exchange of private keys.
2) The system (100) of claim 1, wherein the IoT device (1) eliminates human intervention in the e-KYC data capture process and reduces human error by enabling real-time data collection and forwarding to the IoT gateway (2).
3) The system (100) of claim 1, wherein the consortium blockchain (5) allows multiple financial institutions to collaborate in a decentralized network with access control policies without the need for a trusted third-party intermediary.
4) The system (100) of claim 1, wherein the identity-based proxy re-encryption enables privacy-preservation of customer data and allows secure inter-organizational sharing of KYC records across financial institutions, wherein the mechanism comprises:
a setup algorithm that generates public parameters and a master secret key;
a key generation algorithm that generates customer and financial institution private keys;
an encryption algorithm that encrypts KYC data using the customer's identity;
a re-encryption key generation algorithm that generates a re-encryption key for secure data sharing between the customer and a financial institution;
a re-encryption algorithm that converts the encrypted KYC data into a re-encrypted ciphertext; and
decryption algorithms used by both the customer and financial institution to retrieve the original KYC data from the re-encrypted ciphertext.
(5) The system (100) of claim 4, wherein the re-encryption process allows a proxy node to re-encrypt customer data for the financial institution without having access to the underlying plaintext or private keys, thereby ensuring secure and confidential data sharing.
(6) The system (100) of claim 1, wherein the KYC data stored in the distributed repository (4) is encrypted and the system (100) utilizes a content-addressable hash to uniquely identify the encrypted data in subsequent interactions between the customer and financial institutions.
(7) The system (100) of claim 1, wherein the consortium blockchain (5) eliminates redundant KYC verifications by allowing financial institutions to verify the hash of previously stored KYC records instead of requiring the customer to submit complete KYC documentation repeatedly.
(8) The system (100) of claim 1, further comprising an optimized mechanism for verifying e-KYC records across multiple financial institutions, wherein the verification of the hash on the blockchain is sufficient for subsequent KYC compliance without requiring human intervention.
(9) A method for secure and decentralized e-KYC verification using the system (100) of claim 1, comprising the steps of:
capturing and forwarding customer KYC data via IoT device (1)s;
extracting and verifying the KYC data by a regulator node (3);
encrypting the verified KYC data and storing it in a distributed repository (4);
generating and storing a unique hash of the encrypted KYC data on a consortium blockchain (5); and
using the hash for subsequent verification of KYC records by different financial institutions.
(10) The method of claim 9, wherein the identity-based proxy re-encryption (IBPRE) mechanism (7) is used to securely share KYC records between financial institutions without requiring the exchange of private keys or compromising data privacy.

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