PayID

DevPost Hackathon

Pay ID

7th March 2020

GOALS • Create a private decentralised Blockchain for transactions within banks. • KYC (Know-Your-Customer) ID Verification for Customers.

WHAT IS A BLOCKCHAIN A blockchain is, an immutable time-stamped series record of data that is distributed and managed by cluster of computers.

A blockchain has a list of blocks. It starts with a single block, called the genesis block. The index is the position of the block in the chain. The genesis block has an index of 0. The next block will have an index of 1.

TIMESTAMP A record of when the block was created. The timestamp helps to keep the blockchain in order.

HASH A hash looks like a bunch of random numbers and letters. It is a alphanumeric value that uniquely identifies data, or the "digital fingerprint" of data.

Properties of a hash: Hash has a fixed length. Same data always maps to same hash. Different data always maps to a different hash (within practical limitations). Is infeasible to convert hash to data. A small change in data leads to a large change in hash. A valid hash for a blockchain is a hash that meets a certain requirement. For this blockchain, having three zeros at the beginning of the hash is the requirement for a valid hash. The number of leading zeros required is the difficulty. The previous hash is the hash of the previous block. The genesis block's previous hash is "0" because there is no previous block.DATA Each block can store data against it. For the Banking Sector, the data would be the transaction details and KYC Details. The nonce is the number used to find a valid hash. To find a valid hash, we need to find a nonce value that will produce a valid hash when used with the rest of the information from that block The process of determining this nonce is called mining. We start with a nonce of 0 and keep incrementing it by 1 until we find a valid hash. If a block is mutated, the block, and subsequent blocks become invalid. Invalid blocks are rejected by the peers on the network. They need to be re-mined to be valid. Earlier blocks will be harder to corrupt because there are more subsequent invalid blocks to re-mine. Because peers on the network are always adding new valid blocks, the hacker would have to outmine the network, which requires majority processing power.

51% ATTACK If a participant has more than 51% of the network, he could out-mine the network and hack the blockchain. When there are more miners in the network, the processing power becomes more distributed and no one has majority power. This leads to a more secure blockchain.

WHY BLOCKCHAINS MATTER? Traditionally, bank ledgers have been created within a centralized database. This model has been more susceptible to hackers and cyber-attacks as all the information is located in one place — usually secured behind outdated legacy IT systems. Hackers and cyber-criminals are well aware of evolving digital technology and have been able to bypass these security systems to commit data breaches and fraud. In contrast, as the Blockchain is decentralized, it is less prone to this type of fraud. By using Blockchain there would not only be real-time execution of payments but also complete transparency which would enable real-time fraud analysis and prevention. Blockchain is “a ledger or database that can store all types of information or value exchange that is publicly available for all participants in a group where they all see exactly the same data.” The Blockchain ledger can provide a historical record of all documents shared and compliance activities undertaken for each banking customer. Malicious attempts to view or change the data become part of the data itself, making third-party hacks immediately obvious.

Getting Started with PayIdlD All users data are to be saved on PayID's Blockchain,in other to cross check entries by users and identify the blocks properly.

Users register on the platform with their bank verification number or bvn and password,facial recognition scan is performed from phone to match the ID on the Ledger before logging in.

Phone number verification will be placed as an alternative where a code will be sent to the user's phone number that is stored in the Blockchain.

Partner banks will share the same blockchain making transaction monitoring easier, faster and cost efficient .All happening in real-time.

Built With

• figma