In an increasingly digital economy, blockchain projects are vulnerable to hacking and illegal criminal activities. Solidproof aims to protect these companies with premium Know Your Customer (KYC) standards. This way, they can defend against fraud, money laundering, and cybercrimes.
Since decentralized finance (DeFi) became popular, numerous protocols have fallen victim to fraud and hacker attacks. For instance, only from January to July of 2021, the DeFi space saw hackers steal over $474 million. As it stands, the need for better security measures for crypto companies is more imperative than ever.
Solidproof plans to safeguard blockchain-based projects from illicit attacks with impervious KYC and audit services.
Why KYC Is Crucial
Know Your Customer (KYC) is a procedure that financial institutions use to verify their new clients. In cryptocurrency, blockchain projects use it to understand a user’s intentions for accessing their services. Nevertheless, both employ KYC to reduce the risk of money laundering, financial fraud, and terrorist financing.
In the traditional, centralized financial system, KYC is easier to apply. For instance, banks can easily cooperate with authorities to identify potential clients. However, in DeFi, KYC needs careful application. Otherwise, it might overrule two of the pillar features of blockchain use, anonymity and decentralization.
Only the best KYC standards can ensure protection for both DeFi projects and their users. That’s where Solidproof can help improve security in the crypto space with innovative KYC solutions.
Solidproof KYC Services
Solidproof KYC procedures ensure that a user provides accurate personal information. The company collects and analyzes data, which guarantees that investors do not engage in illegal financial activities. This way, both the DeFi platform and its users can interact in a secure and legal environment.
Solidproof’s KYC process takes place in three unskippable steps:
- Establish the new customer’s identity.
- Comprehend the nature of the customer’s activities and certify that the source of funds is legitimate.
- Understand if the client poses any potential money laundering risks.
Solidproof’s KYC solution aims to increase security and transparency in the DeFi space. This sector of the cryptocurrency industry is a playground for hackers and financial fraudsters. However, through premium Know Your Customer standards, all of that should change.
Developers who want to know the cost of KYC can contact Solidproof for an individual quote bespoke to their project.
Solidproof Auditing Procedures
Solidproof uses expert auditors to identify vulnerabilities in the code of any blockchain-based project. Through relentless testing, they can discover even the tiniest loopholes. These flaws would otherwise allow hackers to drain out funds.
Manual auditing is, so far, Solidproof’s first instrument for DeFi project audits. However, in September, the company will launch an Auto Audit Tool. With it, auditing should become even more secure and efficient.
The Audit Auto Tool will work like this:
- The client accesses the tool and uploads their contract via a file or an URL.
- The Audit Auto Tool calculates all the weak points from the available analysis tool.
- The tool then delivers the audit results while mentioning that it is not a substitute for a proper audit.
Should the client request it, Solidproof can audit the contract manually, as well. Simply put, the company cannot ensure that the automatic audit addresses all of the client’s requisites. Nevertheless, the two auditing methods complement each other to provide a clearer image of a project’s potential weaknesses.
Once this stage ends, Solidproof advises the developers on how to eliminate security risks. Once this happens, Solidproof releases a final report and certification, granting the project a successful audit. Finally, the client receives a unique Verification Badge attesting to the protocol’s security.
How KYC Increases DeFi Projects Security
Know Your Customer standards and auditing can significantly increase a project’s security. Furthermore, by obtaining these certifications, a DeFi protocol also gains credibility and transparency. Lastly, KYC protects it against fraud, scams, and money laundering schemes.
Solidproof seeks to offer better KYC and audit services in decentralized finance and beyond. In this regard, it has already audited up-and-coming projects, such as Jaguar Swap, Doge DNA, and Hive Protocol, among others.
