THEKEY Whitepaper

Abstract

As more and more services and socializing shift from the real world to the online world,
identifying each other digitally has become a prominent theme. Development of Identity
Verification (“IDV”) Technology is one of the most significant trends, which will have a
critical impact on the digital economy. However, none of the existing online IDV
technologies addresses two fundamental requirements: results generated from online
IDV should be undeniable and unalterable.

THEKEY Project is now developing a second-generation IDV solution for the internet via
BDMI technology. BDMI stands for “Blockchain based Dynamic Multi-Dimension
Identification” technology. Such a solution perfectly echoes the main requirements for
identifying each other in the digital world, which is ‘The Key’ for migrating people
from the real world to the online world. BDMI, as the name of it, synergistically
combines Dynamic Multi-Dimension Identification (“DMI”) technology and blockchain
technology. DMI has already passed its development stage and is currently applied to
THEKEY’s existing first-generation IDV solutions, which has built a very solid ground
work to guarantee the successful development of BDMI,

• 23 copyrights have been obtained, 15 patents have been accepted by SIPO (State
Intellectual Property office of the P.R.C) and start attestation process.

• THEKEY’s first-generation IDV solution is currently in use for mobile social insurance
pay in two pilot cities, which people can receive their payment for their pension, or
healthcare insurance reimbursement. The IDV solution is currently being deployed in
another 41 cities, covering more than 130 million people.

• Personal identity data of 210 million people in 66 cities, authenticated by the relevant
government authorities, are connected on a real-time basis. This constitutes a solid
foundation of IDV.

• Commercial contracts signed with world-leading firms and the business model of our
IDV products in this White Paper have already been partly proven.

• Six relevant national laboratories have been set up together with government agencies,
banks, insurance companies and one university.

Along with the development of a second-generation IDV solution, facilitated by token
sales, THEKEY Project team will also develop THEKEY Ecosystem for providing IDV
services (the “Ecosystem”). THEKEY Ecosystem will consist of three components of
participants (Validator, Service Provider and Individual User), Smart Contracts and TKY
Tokens (THEKEY Token). The objectives of setting up THEKEY Ecosystem are, 1) to
develop a healthy environment where Personal Identity Information (“PII”) can be
properly used and protected, and 2) to provide a financial incentive to the participants
in the Ecosystem.

THEKEY generates IDV results by crosschecking multi-dimensionally with the latest PII,
behavior data and scene data. Consider an example case for IDV process in THEKEY
Ecosystem. In THEKEY Ecosystem, when an individual user living in Beijing needs to be
identified, such as for the purchase of medical insurance in Singapore, the insurance
company will trigger a request for IDV service and start a 8-step-journey as follows:
The insurance company, as the service provider, triggers an IDV request including
certain medical histories of the given individual user.

The user accepts the IDV request by using his or her fingerprint through THEKEY
APP or the equipment of the insurance company, and also signs off the relevant Smart
Contract between the insurance company, THEKEY and the user.

THEKEY will review the IDV data request sent by the service provider against the
KYC (Know Your Customer) policy of the relevant industry to justify if the data request is
reasonable.

THEKEY will make comparisons between fingerprint data sent and the relevant
data validated by the government, and then cross check the latest PII data, behavior
data as well as scene data of the given user. These are all automatically settled through
encrypted interfaces.

Once THEKEY is satisfied with the validity of user’s ID, IDV will continue. Relevant
PII like medical history data will be collected as defined by the Smart Contract. THEKEY
will stamp its approval on Blockchain as verification of the result so that the medical
insurance company can use it.

The Smart Contract will be settled by TKY Tokens.

At the same time, all previous calculations will be documented for future data
audit.

The credit of the user and the medical insurance company will be regularly
evaluated and calculated through the above-mentioned data audit.

The IDV result generated from the above is efficient, accurate and reliable. It could also
be tailor-made for any specific ID requirement from the Service Provider subject to
relevant applicable KYC laws and regulations. This process will significantly reduce the
cost of the insurance company and therefore further reduce the premium to be paid by
the user.

THEKEY Website
THEKEY Whitepaper

Social