Design Objective

Objective 3 - Decentralization

A viable solution for an improved eKYC process must avoid central storage of customer data and prevent lock-in effects that could result in the aggregation of market power.

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design-knowledge/kyc-framework-ssi-do3

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Producer label: Objective 3
Source paper: Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Timestamp: 2026-08-05T00:00:00+00:00
Bundle path: design-knowledge/kyc-framework-ssi-do3.md

bankingdesign-objectiveidentity-ssikyckyc-framework-ssiverifiable-credentials

Design objective Objective 3: Decentralization

Silos of customer data are an attractive target for attackers, and recent data breaches have significantly reduced confidence in central architectures. A viable solution for an improved eKYC process must therefore avoid central storage of customer data, and the system must be constructed to prevent lock-in effects that could result in the aggregation of market power.

Source paper

This design objective is proposed by Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity (Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach, 2022).

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2 Design Requirements

design-knowledge/kyc-framework-ssi-r3-1

R3.1 - Avoid central storage of customer data

A viable solution for an improved eKYC process must avoid central storage of customer data, since silos of customer data are an attractive target for attackers.

bankingdesign-requirementidentity-ssikyc+2

design-knowledge/kyc-framework-ssi-r3-2

R3.2 - Prevent lock-in effects

Banks do not want to risk becoming dependent on a centralized eKYC service provider; the system must be constructed to prevent lock-in effects that could result in the aggregation of market power.

bankingdesign-requirementidentity-ssikyc+2

1 Paper

papers/kyc-framework-ssi

Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity

The paper derives six design objectives (16 sub-requirements) for an SSI-based eKYC framework and demonstrates how blockchain-based self-sovereign identity can solve KYC challenges without violating data-protection regulation, deriving three nascent design principles that theorize blockchain's role for SSI: use blockchain only for public data, anticipate an ecosystem of various ledgers, and enable decentralization at the edge.

bankingblockchaindesign-science-researchidentity-ssi+3

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Directed links from Markdown. Heading context is displayed as derived metadata, not as a formal OKF predicate.

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Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Paper
Source
Objective 3 - Decentralization
Target
Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Link label
Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Status
Resolved
Derived heading context: Source paper

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4 of 4 concepts · 8 directed relationships

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{
  "type": "design-objective",
  "title": "Objective 3 - Decentralization",
  "description": "A viable solution for an improved eKYC process must avoid central storage of customer data and prevent lock-in effects that could result in the aggregation of market power.",
  "resource": "https://doi.org/10.1016/j.im.2021.103553",
  "source_paper": "Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity",
  "label": "Objective 3",
  "tags": [
    "kyc-framework-ssi",
    "design-objective",
    "identity-ssi",
    "kyc",
    "banking",
    "verifiable-credentials"
  ]
}

Design Objective

Objective 3 - Decentralization

A viable solution for an improved eKYC process must avoid central storage of customer data and prevent lock-in effects that could result in the aggregation of market power.

Overview

Producer metadata and the represented concept document.

Concept identity

design-knowledge/kyc-framework-ssi-do3

Open concept record

Producer label: Objective 3
Source paper: Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Timestamp: 2026-08-05T00:00:00+00:00
Bundle path: design-knowledge/kyc-framework-ssi-do3.md

bankingdesign-objectiveidentity-ssikyckyc-framework-ssiverifiable-credentials

Design objective Objective 3: Decentralization

Source paper

Linked concepts

Concepts connected by incoming or outgoing native Markdown links.

2 Design Requirements

design-knowledge/kyc-framework-ssi-r3-1

R3.1 - Avoid central storage of customer data

A viable solution for an improved eKYC process must avoid central storage of customer data, since silos of customer data are an attractive target for attackers.

bankingdesign-requirementidentity-ssikyc+2

design-knowledge/kyc-framework-ssi-r3-2

R3.2 - Prevent lock-in effects

Banks do not want to risk becoming dependent on a centralized eKYC service provider; the system must be constructed to prevent lock-in effects that could result in the aggregation of market power.

bankingdesign-requirementidentity-ssikyc+2

1 Paper

papers/kyc-framework-ssi

Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity

bankingblockchaindesign-science-researchidentity-ssi+3

Relationships

Directed links from Markdown. Heading context is displayed as derived metadata, not as a formal OKF predicate.

Outgoing links

Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Paper
Source
Objective 3 - Decentralization
Target
Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Link label
Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity
Status
Resolved
Derived heading context: Source paper

Incoming backlinks

Local graph

One-hop by default, with an optional bounded two-hop view. Nodes are concept files and arrows are Markdown links.

Knowledge graph

4 of 4 concepts · 8 directed relationships

Concept types

Raw metadata

The complete producer frontmatter, serialized without server paths or runtime data.

Show producer frontmatter

{
  "type": "design-objective",
  "title": "Objective 3 - Decentralization",
  "description": "A viable solution for an improved eKYC process must avoid central storage of customer data and prevent lock-in effects that could result in the aggregation of market power.",
  "resource": "https://doi.org/10.1016/j.im.2021.103553",
  "source_paper": "Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity",
  "label": "Objective 3",
  "tags": [
    "kyc-framework-ssi",
    "design-objective",
    "identity-ssi",
    "kyc",
    "banking",
    "verifiable-credentials"
  ]
}