The Value Inherent in KYC Tokens
Like many cryptographic tokens, Blockpass’ PASS token is an ERC20 token; however, unlike cryptocurrencies and many other tokens, it is a utility token – specifically a ‘KYC’ token - which provides a gateway into the Blockpass ecosystem of regulated entities and offers benefits for users and businesses alike.
There is value inherent in the idea of KYC enabled token such as the PASS token, as the owners of the PASS token must have passed through the KYC process before being able to trade or transfer it with other people. This means that in the token, not only is there the primary value of knowing they have been approved against the designated criteria, but also the less obvious financial price that the KYC check would have cost. The token also has value depending on who it is viewed by. For a user, the PASS token represents a way to avoid the repetitive and slow process of complying with KYC; it will be simplified and almost instantaneous. Eventually, any area which requires a verified identity may also be linked to the PASS token. By having a token to disintermediate personal data from verification status, the privacy of users is enhanced. The PASS token is also able to be traded in a similar manner to other cryptocurrencies and tokens. Creating an easy way to interact with regulated services whilst protecting the privacy of consumer data should be highly desirable to people, and as blockchain technology and the Internet of Things becomes more commonplace, this importance will only increase. Merchants can expect to see similar benefits when using a KYC token like the PASS token; the value that they experience comes from the speed at which they can on-board customers (as the verification process has already taken place) and the increased cost efficiency that is possible through creating reusable identities. The most important factor in this is that the PASS token is designed in such a way that it can only be exchanged once the KYC process has been passed; therefore, merchant can be sure that the user has already passed relevant KYC checks and also have access to an increasingly large pool of potential users who have obtained PASS tokens from other merchants or initiatives. Beyond its use and value for users and merchants alike, the benefit of a KYC token can be seen from a regulator’s viewpoint by showing compliance with the transparent and immutable nature that blockchain-based solutions bring. As the benefits of blockchain become better known, it is expected that industries will adopt this type of solution as standard due to the efficiencies and security it brings. In using tokens such as the PASS token, people and companies – particularly in the blockchain space - will gain more legitimacy and will become more readily accepted by the general populace and regulators alike as they can prove that they are authentic and compliant – two key factors that have become necessary to prove thanks to the bad press that cryptocurrencies and blockchain technology have (usually unfairly) attracted. To find out more about KYC compliance, Blockpass and the PASS token, ask on our social media channels such as Twitter, Telegram or Facebook.