Jingtum SWTC Wallet+ Upper KYC Real-name Information Integration

If you’ve ever been in contact with cryptocurrencies, you’ll hear a lot about KYC. Why is KYC always on the crytocurrency market? What exactly is KYC? What does it matter to us?

Origin of KYC

KYC, which stands for Know Your Customer, originated from the “Anti-money Laundering Act” which is the institutional basis of AML anti-money laundering and corruption prevention. In general, KYC policy requires financial institutions and enterprises not only to implement a real-name account system to understand the actual controller of the account and the actual beneficiary of the transaction, but also to have comprehensive understanding of customer’s identity, permanent address or business conducted in the enterprise, so as to take corresponding measures. Simply, KYC is to know detailed information of your customers, such as their real name, phone number, ID number, features, property status, social relationships, etc.

KYC – Real-name Information

KYC exists everywhere in our life. For example, when you apply for a bank card, you need to full in a lot of personal information. This is KYC. Or if you want to register an Alipay account or process WeChat payment, you will need real name authentication (filling in real name, phone number, ID number and other identity information), and these are also KYC. It is necessary for using KYC to ensure the safety of both enterprises’ and users’ property and meet the regulatory requirements of government departments in enterprise management.

KYC Rules in Cryptocurrency Transactions

Cryptocurrencies have thee nature of decentralization and anonymity, that goes against the nature of KYC in a way. Before, exchanges were less strict about KYC because cryptocurrencies were not subject to government regulation or restrictions. However, in the following years, there were frequent frauds and thefts in cryptocurrency transactions, as well as illegal activities such as fund raising, money laundering and drag trafficking by criminals using cryptocurrencies. Therefore, KYC gradually becomes a mandatory rule for cryptocurrency exchanges under the strict control of governments and financial regulatory authorities.

So for now, KYC rules are strictly enforced on mainstream cryptocurrency exchanges and wallets with transaction function.

Jingtum SWTC Wallet and KYC

Though bitcoin appears to be completely anonymous and “absolutely decentralized”, in a commercial situation, regulator, project operators and users all require their transactions to be protected by laws and regulation. In this case, completion of the corresponding KYC is an essential step, especially in the financial industry.

Besides, a mature blockchain needs to protect users’ privacy as far as possible, so that to prevent traditional centralized crimes and to make data of users become users’ controllable and realizable assets. The design of commercial public blockchains should strike a balance between these two states.

Furthermore, a public blockchain is similar to an infrastructure, and operators of different application scenarios on it should be able to choose whether to share their user data with other application scenarios operators when accessing, and can obtain proper service of the public blockchain in both cases.

Launched in 2014, Jingtum SWTC Public Chain is a decentralized platform that can accommodate both issuance and transaction of various digital assets.

Jingtum SWTC Public Chain Fingate is to implement the third party’s assets in the public blockchain network interface. The assets of the third part enter the public blockchain network through Fingate, and issue the corresponding usercoin. If the customer needs to cash, it must also through Fingate to get assets.

Another function of Fingate is to provide a barrier function between the application scenario operator and the underlying layer of Jingtum SWTC Public Chain, so that the operator can decide whether to share user information with other applications. Therefore, under the overall technical framework, the operator will complete the user KYC work and map it to a wallet public key address on the public blockchain, that the mapping relationship is saved in the application layer.

For users, under this architecture, their privacy is still anonymous and protected in the blockchain layer. Anonymous transactions can be made on demand. However, when regulatory and legal requirements are required, scenarios including anti-money laundering and other financial scenarios and scenarios stipulated by law can be verified through the Fingate regulatory function.

Sha Zhou, founder of Jingtum SWTC Public Chain, shared some thoughts on the combination of blockchain technology and KYC:

“Do you know what KYC is? If you don’t have KYC, you can’t live in any country. KYC is a real name system. For our Jingtum SWTC Wallet , actually like bitcoin wallet, the “J” address is nothing to do with the real name, so our processing method is to implement an integration of underlying anonymous “J” of Jingtum SWTC Wallet and upper KYC real-name information. However, there is a paradox here, that is at the underlying layer, the wallet is safe and decentralized, but at the upper layer, the wallet is real-name centralized.

Centralized data management, in fact, is not totally secure. For instance, Alipay was suddenly breached that caused leakage of hundreds of millions of users’ privacy information. It is not just a personal issue, but a national security issue. Therefore, our solution is a decentralized system. Your Jingtum SWTC Wallet is actually the J wallet in underlying layer and eID identity in upper layer. The eID identity can be stored in Jingtum address, just like cspc. Since it is decentralized, there will be no privacy information in Jingtum SWTC Wallet.

So where is your real information? It is in the ministry of public security. For example, if you book a hotel, you do not need to provide your ID card, but an eID. Though hotel staffs do not who you are (your name, address, phone number, work, etc., are all anonymous and private), this eID is unique and cannot be forged.

So what happens if there is a crime? That is the work for law enforcement agency to find out whose eID is according to database stored in the ministry of public security. In the future, the law will require that enterprises and institutions cannot obtain or store the privacy of others. You can only go to the ministry of public security to find out if you are authorized by law enforcement, or if you have authorized those enterprises yourself (and they pay you later).

That is what we need to implement in Jingtum SWTC Public Chain, and then provide cross-chain services to other public blockchain, offer interfaces to other non-blockchain Internet companies.”