Forrester Research has recently issued their latest report on the above topics which should be of high interest to our members. Compliance (KYC, Anti-Money Laundering), identity management (authentication and verification), will be key components in any blockchain transactions.
Tougher anti-money laundering requirements necessitate additional diligence. Digital identity verification is necessary for verifying human identities at scale. Because they are prohibitively costly and difficult to use, public key infrastructures (PKIs) have largely failed to live up to their promises of verifying and vetting human identities (however, they are used successfully in device authentication). Digital identity verification (IDV) based on credit header files works only in the US, the UK, and Germany, applies only to customers who have credit histories (mainly adults), and covers consumer verticals but not business-to-business-partner (B2P) IDV scenarios (when an insurance company wants to vet an independent agency and its employees). A blockchain based distributed ledger can provide evidence and context of a customer’s legitimate or fraudulent transactions at other organizations to help with the IDV process.
Secure Blockchains will be the basis for trust in distributed transaction views: Blockchains offer a distributed database of linked blocks (transactions or other data) which organizations can query and securely update to support business processes such as lending, handling insurance claims, and tracking shipments. But before blockchains can fulfill this promise, S&R pros must ensure they protect and control access to the data they hold.
Secure Blockchains Will Enhance Security And Risk Management Capabilities Blockchains minimize the risk of compromised data, and their distributed and shared nature reflecting agreed truth can make processes for fraud management, anti-money laundering, know your-customer (KYC), identification verification, and authentication much more reliable and less expensive.
Why this report? Secure blockchains will become the foundation for verifiable transactions — both business and operational — running the gamut from payments, financial transfers, and shipment tracking to identity verification and authentication. This report for security and risk (S&R) professionals explains why blockchains will play a key role in security, how to secure them, and which S&R management areas blockchain technologies will affect most.
This report is available for individual purchase ($499 USD): To purchase click here.