Blockchain’s Missing Link: Governance++

Anti-climactic

— a word that describes the high expectations of mass adoption created by Blockchain hype that did not deliver.

Why? The answer points to lack of risk management and regulatory protocols, all within the scope of governance.

  • For years, many have written and spoken about the need for governance as a prerequisite for enterprises, small businesses, and everyday people to onboard themselves into the crypto world.
  • Compliance protocols have two sides to address.

1. Regulatory satisfaction (AML KYC and GDPR)

2. Personal data risk exposure and bad user experience

  • For example, a person might be excited about signing up for a new crypto or bank account at a company, but when having to undergo the AML KYC process and exposing one’s sensitive data again for the 100th time, the excitement wanes into delay, insecurity, and apathy.
  • Initiating any new business relationship with such feelings does not bode well for the customer or the business.
  • People want to find enjoyment in new things and are glued to their screens more than ever before.
  • Truly smart technology implements solutions that address digital insecurity and apathy by motivating and reinforcing positivity.
  • Positivity can be created with engaging user experiences that reward and incentivize ethical behavior including compliance actions.

Digital environments call for more security and control, of which privacy is a byproduct.

  • The digital realm has a plethora of tools to fix these problems of data security and control.
  • GDPR’s enforcement in May 2018 governs the digital realm of data privacy and consent, setting higher standards without excuse.
  • As tightening compliance laws such as the Travel Rule intensify the tens of billions of dollars in AML KYC expenses and fines, compliance costs pose threats of bankruptcy.
  • The solution must be out-of-the box and ready to use, easy to implement, and as non-disruptive as possible to legacy and crypto enterprises.
  • It must enable companies, their customers, and financial entities to interact in a compliant manner, respecting both GDPR and KYC mandates.
  • FISE Portal presents a responsive, equitable solution that encompasses these governance needs and more.

Native Governance

On a network that puts compliance first, native governance results in the foundational digital culture.

  • When governance is enabled and maintained, risks are lowered creating more safety and security.
  • At a high-level, regulations address risk management, record-keeping, and compliance to the law, which serve to mitigate financial and criminal risks.
  • FISE Portal’s platform for compliance mitigates risks of the regulatory, reputational, criminal, financial, privacy, and constitutional kinds.
  • Upon successfully lowering such risks, FISE Portal will have created a safer, more respectful, and delightful digital experience for all users.

Incentivized Compliance

Compliance is resource and time intensive.

  • AML KYC Compliance involves the processing of private, personal information and resulting risk classifications, largely unbeknownst to the person to whom the information belongs.
  • This is a GDPR violation. The invasive nature of current AML KYC processes has been criticized and analyzed in light of data privacy and GDPR laws.
  • The person does not know how the data is processed nor what reputational conclusions will be made of their personal data.
  • If their data is concluded to be of a high risk classification and of a criminal nature without the person’s knowledge or response, their Fifth Amendment constitutional rights may have been compromised, taking away their rights against self-incrimination.
  • The Amendments of the U.S. Constitution serve to maintain a healthy check on overt or covert government methods on incriminating citizens, whether justified by threats of terrorism or not.
  • FISE Portal will enable mitigation of constitutional, GDPR-related, and regulatory compliance risks, while reducing costs for regulated companies and regulators, resulting in two benefits:

1. Multi-dimensional risk management

2. Cost savings

  • Incentives include the procurement of records recognition for provenance and reputational purposes, cryptocurrency, and more.
  • Symbiotically, FISE Portal seeks incentivized operational partnerships with AML KYC providers for their core compliance contributions to the FISE network.

Node Validation

Digital actions have been difficult to authenticate and validate for provenance purposes because they have not been recognized or recorded in a witness-able manner.

  • Currently, digital compliance actions on the customer side are not equipped with a record of prior authentications or validations.
  • This explains having to complete the same KYC process beginning at level 0 every single time.
  • Time and resources are unnecessarily wasted for both customer and regulated company due to lack of provenance regarding previous compliance actions.
  • The wasted time and resources are not recognized or incentivized leading to quadruple the waste per KYC processing:

Waste #1: Time and resource from customer

Waste #2: Time and resource from the regulated company

Waste #3: No recognition or incentives for customer’s KYC tasks

Waste #4: No recognition or incentives for company’s KYC processing

  • After undergoing the KYC process ad nauseam throughout one’s entire lifespan, it makes perfect sense to recognize these actions and use them to build positive-behavior reinforcement scores.
  • The authentication and validation are completed by the network’s native compliance service and nodes in a micro-consensus manner.
  • The provenance is recognized and recorded, crediting both customer and company for their cooperative KYC efforts, time, and resources
  • The company and customer nodes are incentivized for their time and resources spent per KYC event
  • The validating nodes are incentivized for participating in micro-consensus validation per KYC event

Network Ownership

Blockchain technology has enabled the ownership of digital goods such as cryptocurrency in the real world. Network ownership is the next step.

  • Because maintaining a successful blockchain network requires the active and ongoing participation of users’ computers (devices) and computing power, those who support the network should also have ownership rights of the network.
  • Ownership may be determined by metrics including but not limited to network engagement and developer contributions.
  • FISE Portal will roll out these developments in succeeding stages of development.

Call To Action

Email us at connect@fiseportal.com with your thoughts and how you want to get involved. We’d love to hear from you!

  • Additionally, FISE Portal is seeking a web designer with mad WordPress skills who can help us redo the current website.
  • Feel free to send resumes or send a hello to connect@fiseportal.com.

FISE Portal General Information

More Articles:

Disclaimer: References to FISE Portal’ services are intended to be forward-looking statements that describe the projected state of FISE Portal’s future development, currently in progress.

Follow us on Facebook, Twitter, LinkedIn.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
FISE Portal

FISE Portal

FISE stands for “Financial Intelligence Search Engine” Portal. FISE Portal is a platform for the future of compliance and more.