We propose a decentralized KYC/AML gateway on the Algorand blockchain that verifies user identity via email + phone number checks, leveraging your existing Swift Email Verifier API and a third-party phone validation service.
This system uses a stateful Algorand smart contract to enforce payments, quotas, and audit trails on-chain, ensuring transparency and tamper-proof logs. Algorand Developer Portal An off-chain oracle backend listens for validation requests, invokes the APIs, and returns results via 0-ALGO transactions.
Integrations with DAOs, marketplaces, and tokenized access unlock new revenue models and community-driven identity reputations.
This architecture meets global KYC/AML regulations, deters bots/fraud, and positions your company as a blockchain-first innovator.
- Problem Statement & Market Opportunity 1.1 Rising Regulatory Demands Fintech and crypto firms face escalating KYC/AML requirements to prevent money laundering, fraud, and terrorist financing—fines can exceed tens of millions of dollars for non-compliance.
Major regulators in the US, EU, and Asia stipulate customer due diligence, ongoing transaction monitoring, and record-keeping. Sumsub
1.2 Fractured Identity Verification Traditional KYC/AML flows rely on centralized vendors, siloed databases, and manual reviews—incurring high costs (US$10 – 50 per user), slow onboarding (days), and single points of failure.
Crypto DAOs and on-chain marketplaces lack native identity layers, exposing them to Sybil attacks, bots, and regulatory risk.
1.3 Demand for Web3-Native Solutions The Web3 ecosystem is hungry for decentralized, privacy-preserving identity frameworks that are interoperable across dApps and chains, minimize trust, and reduce KYC costs—especially for token sales, DeFi platforms, and NFT marketplaces.
- Proposed Solution Overview 2.1 Core Components Algorand Stateful Smart Contract for gating and logging validation requests
Email Validation Module using your Swift Email Verifier API
Phone Validation Module via IPQualityScore or TeleSign APIs
Oracle Backend to orchestrate API calls and on-chain callbacks
Frontend SDK/dApp for seamless user onboarding and result retrieval
DAO & Marketplace Integrations using tokenized access and on-chain reputation