Research paper

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

The paper 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.

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Overview

Publication metadata and narrative from the current library record.

Authors: Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach
Year: 2022
Venue: Information & Management 59 (2022) 103553
Methodology: Design science research; six solution objectives from literature and regulation; expert interviews (ex ante and ex post evaluation).

bankingblockchaindesign-science-researchidentity-ssikyckyc-framework-ssiverifiable-credentials

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

Authors: Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach
Venue: Information & Management 59 (2022) 103553
Link: https://doi.org/10.1016/j.im.2021.103553 (opens in a new tab)

Summary

Artifact

An SSI-based electronic KYC (eKYC) framework and architecture for banks.

Methodology

Design science research; six solution objectives from literature and regulation; expert interviews (ex ante and ex post evaluation).

Citations

[1] Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach. Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity. Information & Management 59 (2022) 103553. https://doi.org/10.1016/j.im.2021.103553 (opens in a new tab) [2] Source document: Designing a framework.pdf

DSR grid

Six dimensions represented in the current paper record.

Problem description

KYC processes are costly, inefficient and inconvenient; blockchain is proposed as a remedy, but it is unclear how to exploit its advantages without violating data-protection regulation and customer privacy.

Input knowledge

Self-sovereign identity and verifiable credentials; network-effects theory; GDPR/eIDAS regulation; prior DSR in the domain.

Research process

Design science research: six solution objectives derived from literature and regulation, with ex ante and ex post expert interviews for evaluation.

Key concepts

Banking, digital certificate, digital wallet, decentralized identity, distributed ledger technology, verifiable credential.

Solution description

An SSI-based electronic KYC (eKYC) framework and architecture that uses the blockchain mainly for public data with bilateral off-chain exchange. Solution-space representation: Instantiation (framework/architecture) plus three nascent design principles.

Output knowledge

Three nascent design principles theorizing blockchain's role for SSI.

Design knowledge

Directly linked concepts, grouped by their represented design-knowledge category.

Design Principle

Design Principle3

Design Principle

design-knowledge/kyc-framework-ssi-dp1

DP1 - Utilize blockchain only for public data

Use blockchain in SSI processes only for public data:

bankingdesign-principleidentity-ssikyc+2

Design Principle

design-knowledge/kyc-framework-ssi-dp2

DP2 - Anticipate an ecosystem of various ledgers

Do not assume a single shared ledger;

bankingdesign-principleidentity-ssikyc+2

Design Principle

design-knowledge/kyc-framework-ssi-dp3

DP3 - Enable decentralization at the edge

Ensure that users can store their verifiable credentials on an infrastructure of their choice, supporting user autonomy and decentralization at the edge of the SSI architecture.

bankingdesign-principleidentity-ssikyc+2

Paper design map

The default semantic design map canonicalizes stored design relationships; Raw links retains the complete technical Markdown-link view.

Design-knowledge map

3 stored concepts / 0 canonical semantic relationships

Concept types

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Publication metadata

Additional metadata represented in the current library record.

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{
  "type": "paper",
  "title": "Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity",
  "description": "The paper 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.",
  "resource": "https://doi.org/10.1016/j.im.2021.103553",
  "authors": "Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach",
  "year": 2022,
  "venue": "Information & Management 59 (2022) 103553",
  "methodology": "Design science research; six solution objectives from literature and regulation; expert interviews (ex ante and ex post evaluation).",
  "dsr_grid": true,
  "dsr_solution_space": "Instantiation (framework/architecture) plus three nascent design principles.",
  "tags": [
    "kyc-framework-ssi",
    "identity-ssi",
    "kyc",
    "banking",
    "verifiable-credentials",
    "design-science-research",
    "blockchain"
  ]
}

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

Summary

Citations

{ "type": "paper", "title": "Designing a Framework for Digital KYC Processes Built on Blockchain-Based Self-Sovereign Identity", "description": "The paper 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.", "resource": "https://doi.org/10.1016/j.im.2021.103553", "authors": "Vincent Schlatt, Johannes Sedlmeir, Simon Feulner, Nils Urbach", "year": 2022, "venue": "Information & Management 59 (2022) 103553", "methodology": "Design science research; six solution objectives from literature and regulation; expert interviews (ex ante and ex post evaluation).", "dsr_grid": true, "dsr_solution_space": "Instantiation (framework/architecture) plus three nascent design principles.", "tags": [ "kyc-framework-ssi", "identity-ssi", "kyc", "banking", "verifiable-credentials", "design-science-research", "blockchain" ] }