Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method

This research introduces an innovative approach in implementing Know Your Customer (KYC) on blockchain technology as a means of using data, hybrid robust m-estimation, and the iteratively reweighted less squares (IRLS) method to optimize CLV data. This approach aims to improve the accuracy and relia...

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Main Authors: Marischa Elveny, Mahyuddin K.M. Nasution, Fanindia Purnamasari, Tengku Siti Meriam Tengku Wook
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:ICT Express
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405959525000347
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author Marischa Elveny
Mahyuddin K.M. Nasution
Fanindia Purnamasari
Tengku Siti Meriam Tengku Wook
author_facet Marischa Elveny
Mahyuddin K.M. Nasution
Fanindia Purnamasari
Tengku Siti Meriam Tengku Wook
author_sort Marischa Elveny
collection DOAJ
description This research introduces an innovative approach in implementing Know Your Customer (KYC) on blockchain technology as a means of using data, hybrid robust m-estimation, and the iteratively reweighted less squares (IRLS) method to optimize CLV data. This approach aims to improve the accuracy and reliability of CLV predictions by ensuring the security and reliability of customer data. This tool can help companies manage and increase CLV more effectively, meeting data security and compliance standards. The R-squared validation test results are close to 1, so the model can explain data variations well. RMSE and MSE have small values, ​​so the model has good performance in predicting the target value. With these achievements, this approach contributes to the development of better marketing strategies and business decisions in an increasingly complex and rapidly changing digital environment.
format Article
id doaj-art-a5422884d46a403abb3fe98e11085bb6
institution OA Journals
issn 2405-9595
language English
publishDate 2025-06-01
publisher Elsevier
record_format Article
series ICT Express
spelling doaj-art-a5422884d46a403abb3fe98e11085bb62025-08-20T02:07:30ZengElsevierICT Express2405-95952025-06-0111340241010.1016/j.icte.2025.03.006Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS methodMarischa Elveny0Mahyuddin K.M. Nasution1Fanindia Purnamasari2Tengku Siti Meriam Tengku Wook3Fakultas Ilmu Komputer dan Teknologi Informasi, Universitas Sumatera Utara, Medan, Indonesia; Corresponding author. Peer review under responsibility of The Korean Institute of Communications and Information Sciences.Fakultas Ilmu Komputer dan Teknologi Informasi, Universitas Sumatera Utara, Medan, IndonesiaFakultas Ilmu Komputer dan Teknologi Informasi, Universitas Sumatera Utara, Medan, IndonesiaFakulti Teknologi dan Sains Maklumat, Universiti Kebangsaan Malaysia, Bangi, MalaysiaThis research introduces an innovative approach in implementing Know Your Customer (KYC) on blockchain technology as a means of using data, hybrid robust m-estimation, and the iteratively reweighted less squares (IRLS) method to optimize CLV data. This approach aims to improve the accuracy and reliability of CLV predictions by ensuring the security and reliability of customer data. This tool can help companies manage and increase CLV more effectively, meeting data security and compliance standards. The R-squared validation test results are close to 1, so the model can explain data variations well. RMSE and MSE have small values, ​​so the model has good performance in predicting the target value. With these achievements, this approach contributes to the development of better marketing strategies and business decisions in an increasingly complex and rapidly changing digital environment.http://www.sciencedirect.com/science/article/pii/S2405959525000347BlockchainCLVIRLSKYCRobust M-Estimation
spellingShingle Marischa Elveny
Mahyuddin K.M. Nasution
Fanindia Purnamasari
Tengku Siti Meriam Tengku Wook
Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method
ICT Express
Blockchain
CLV
IRLS
KYC
Robust M-Estimation
title Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method
title_full Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method
title_fullStr Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method
title_full_unstemmed Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method
title_short Blockchain-enabled KYC integration for CLV optimization with robust M-Estimation and IRLS method
title_sort blockchain enabled kyc integration for clv optimization with robust m estimation and irls method
topic Blockchain
CLV
IRLS
KYC
Robust M-Estimation
url http://www.sciencedirect.com/science/article/pii/S2405959525000347
work_keys_str_mv AT marischaelveny blockchainenabledkycintegrationforclvoptimizationwithrobustmestimationandirlsmethod
AT mahyuddinkmnasution blockchainenabledkycintegrationforclvoptimizationwithrobustmestimationandirlsmethod
AT fanindiapurnamasari blockchainenabledkycintegrationforclvoptimizationwithrobustmestimationandirlsmethod
AT tengkusitimeriamtengkuwook blockchainenabledkycintegrationforclvoptimizationwithrobustmestimationandirlsmethod