Abstract
Customer credential verification is an ongoing activity at financial institutions. Know Your Customer is one such periodic verification activity. Often, organizations store the collected customer credentials on centralized storage platforms (e.g., cloud storage and central servers) which could result in major privacy breaches. In addition, when a customer has accounts at multiple institutions, this process is repeated at each of the institutions, resulting in wasted resources and inconvenience to the customer. In this paper, we describe Casper, a blockchain and self-sovereign identity-based digital identity platform, to address these issues. Unlike traditional identity systems, here the actual identity credentials of customers are stored on their own mobile wallet applications. The system only stores the proofs of the credentials on its blockchain-based decentralized storage system. Casper employs Zero-Knowledge Proof mechanisms to verify the identity information from the credential proofs. As a proof of concept, we have employed Casper in a banking environment. Preliminary evaluation studies show the system to be scalable and being capable of yielding high transaction throughput.
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This work was supported in part by the DoD Center of Excellence in AI and Machine Learning (CoE-AIML) under Contract Number W911NF-20-2-0277 with the U.S. Army Research Laboratory.
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Bandara, E., Shetty, S., Mukkamala, R. et al. Casper: a blockchain-based system for efficient and secure customer credential verification. J BANK FINANC TECHNOL 6, 43–62 (2022). https://doi.org/10.1007/s42786-021-00036-3
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DOI: https://doi.org/10.1007/s42786-021-00036-3