- Accounting heavyweight Deloitte has unveiled blockchain-based reusable digital credentials
- The offering, powered by Polkadot parachain KILT Protocol, seeks to enhance the accounting firm’s KYC and KYB processes
- The on-chain reusable credentials can be used in the banking and DeFi worlds
Accounting heavyweight Deloitte has unveiled blockchain-based reusable digital credentials powered by Polkadot sidechain KILT Protocol. Deloitte plans to use the credentials to enhance its know your business (KYB) and know your customer (KYC) processes, with the accounting firm noting that the credentials can be used both in the banking and DeFi worlds. Deloitte revealed that the credentials will be held in a user-controlled wallet although the accounting firm will be able to revoke them when they no longer meet the specified standards after issuance.
User-Owned but Deloitte is in Charge
According to Deloitte, the current credentials verification process is tedious since it requires the involvement of multiple entities, adding that the use of centralized databases puts the privacy of consumers’ data at risk.
Establish a digital identity with Deloitte and keep control of your data, sharing only the data you want to share. We are launching a credential verifier, in partnership with @Kiltprotocol and @Polkadot. Applications opening soon. #KYC #Blockchain #Web3
— Deloitte Switzerland (@DeloitteCH) May 4, 2023
In a statement, the accounting firm said that reusable blockchain-based KYB and KYC credentials will help overcome challenges encountered when dealing with a centralized process, while also allowing customers to be in charge of their data.
Although the credentials are under the control of their owners, the accounting firm will maintain the power to cancel them after issuance, especially when they no longer meet the required standards.
Reusable Digital Credentials can Birth New Digital Marketplaces
According to Deloitte’s head of managed services Micha Bitterli, the offering can help drive the adoption of e-commerce and games, while also laying the foundation for “new digital marketplaces.”
Polkadot commented on the move noting that the on-chain reusable digital identity credentials will help businesses detect fraud, terrorist financing and money laundering schemes. However, it’s not clear whether Polkadot is Deloitte’s new home after ditching Ethereum for VeChain four years ago.
2/ Deloitte will leverage KILT’s reusable digital identity credentials to support its Know Your Customer / Know Your Business processes (KYC/KYB) – vital for protecting financial institutions against fraud, corruption, money laundering and terrorist financing.
— Polkadot (@Polkadot) May 4, 2023
With Deloitte unveiling decentralized IDs, it’s yet to be seen whether other top accounting firms like KPMG and Ernst & Young will unveil a similar product.