Electronic Know Your Customer (e-KYC) systems play a crucial role in verifying user identities
for financial institutions, telecom operators, and other service providers. However, traditional e-
KYC frameworks rely heavily on centralized databases, making them vulnerable to data breaches,
unauthorized access, single points of failure, and privacy risks. To address these challenges, this paper
proposes a blockchain-based e-KYC system that enhances trust, security, and user privacy. The proposed
architecture integrates distributed ledger technology with smart contracts to create a transparent, tamperproof,
and decentralized identity verification platform. User data is encrypted and stored securely, while
verification records are maintained on an immutable blockchain ledger. Authorized entities can access
customer information only through permissioned smart contracts, ensuring controlled data sharing and
minimizing exposure. This approach eliminates repeated KYC processes, reduces operational costs,
prevents identity fraud, and strengthens user control over personal data.Over all, the blockchainenabled
e-KYC system provides a more reliable, efficient, and privacy-preserving solution compared to
conventional centralized models. It significantly improves trust among stakeholders and establishes a
secure foundation for digital identity management in modern financial and governmental ecosystems.
