A Decentralised Kyc Based Approach for Microfinance Using Blockchain Technology

Financial inclusion is seen as a dynamic tool for achieving multifaceted macroeconomic stability, inclusive and sustainable economic growth, job creation, poverty reduction, and income equality for both developed and developing nations. To achieve this inclusion the needy segments of population has to be provided with financial services but the traditional financial market is unavailable to provide due to the lack of collateral and their shallow income. And thus they go to local moneylenders, also known as "loan sharks," who charge exorbitant interest rates of up to several hundred percent each month frequently and often harass them during repayment time the are only available option for them. Introduction to microfinance came as a new and refreshing light to these people of vulnerable segment as it provides small loans (micro-credit) to support their micro businesses or engage in productive activities. As new and advance technology started incorporating in the every aspect of society thus microfinance also needed to incorporate the technology .To influence this smoothly an application is needed which can protect data integrity as the databases are vulnerable to data manipulation which can affect the transaction of loan as it can wipe out the transaction history.To solve this problem , blockchain technology can be used.As in here data is stored immutably. So we formed a microfinance application which used blockchain technology with KYC architecture which is used for verifying the KYC only for once for authentication and helped in borrowing money