How useful it is to issue digital certificates on the blockchain?

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Blockchain technology is used in several ways in varied industries for offering high-security managing distribution systems and recording valuable information. Blockchain records all transactions without any verification from third parties. An evolving issue in recent years is - counterfeiting certification. It is posing serious threats to people. Issuing paper-based certificates manually is prone to errors and time- consuming. Day by day, the number of people's data is increasing, so deploying a system for both issuing and verifying digital certificates based on blockchain technology can solve issues of forged documents.

What is the current problem with document certification?

Many organisations and businesses need original documents for verification purposes before further processing. Some valuable documents like (birth certificates) exist only once. Parties involved in verification and issuing other certificates may experience hesitancy to handle these sensitive documents and that can result in damage or even loss. Many parties are unable to protect the valuable physical pieces of paper with this process. Another big problem comes from data theft. Many people have reported it. So the question comes: how can this issue be solved? Creating digital proof or digital certificates certified or signed by respective institutions or authorised organisations can be beneficial. With blockchain-based digital certificates, you can access and verify the digital asset's authenticity without depending on any intermediary or third party. Traditional data records like paper files deteriorate over time. storing records like digital certificates on the blockchain can help in safeguarding sensitive credentials from destruction & damage. Blockchain document security methods can help users seamlessly secure their sensitive documents.

What about blockchain solutions?

Blockchain technology has brought a revolution in storing and sharing data. The mechanism of cryptography helps in keeping information fully secured. Blockchain offers a digital ledger or decentralised database of data. Centred on computer networks that approve updates before data get recorded and verified. It lessens the reliance and vulnerability of centralised data storage. Instead of handling physical pieces of documents, issuing and storing digital certificates in blockchain can be advantageous to users. You can efficiently utilise the benefits of blockchain, like - authentication, encryption and decentralisation. Every certificate consists of references of both issuer and receiver with a hash (a sign of document), that is stored in the public database. It is identical in the number of computers throughout the globe. These digital certificates with blockchain technology have vital additional advantages over any other certificates.

How does blockchain make digital certificates work?

When a digital certificate is issued, data gets digitised. A digital identity gets assigned to every certificate. All of the digital certificates are tagged as well as traceable. Original documents are stored safely in the computer networks in the blockchain which are known as nodes. In totality, blockchain makes digital certificates highly transparent and secured. It also makes it easy to unfurl any fraud because this technology can expose any forged or outdated certificates.

Are these digital certificates tamper-proof?

Yes, the digital certificates are tamper-proof not by just signing but right after the beginning of the transaction. A signing algorithm produces a signature that is encrypted through a private key. The digital signature in these certificates can never be forged without having access to the private key of the user or members. With the help of document security QR codes, users can secure their valuable credentials.

What are the potential benefits of issuing digital certificates on the blockchain?

Blockchain has evolved to be beneficial for the financial industry. This technology is the most talked about and sought-after technology used in the world. There are innumerable benefits of issuing digital certificates on the blockchain. Some of them are here: a) Require fewer resources for issuance: Issuance and maintenance of digital certificates on the blockchain require a very less number of resources. As a result, the whole process saves time, effort and human capital. b) Digital certificates are conveyable: Contrary to physical certificates, the digital ones issued on the blockchain need not be carried around every place. Digital certificates are there to exist for a lifetime. These certificates can be easily accessed on any of your devices from any part of the world. c) Ideal as Identity proof: Digital certificates based on blockchain are the best substitution for the traditional proofs of paper identification. Digital certificates are issued on a highly secured framework of blockchain which is fully secured. These verifiable certificates can be easily traced all the way back to an issuer. This method makes the procedure transparent. You can use the blockchain document security method for securing and storing your valuable documents. d) Gives overall data security: Paper certificates can also take days and months to get issued and dispatched. Paper certificates can be altered without issuing the institute's knowledge and that is risky. Digital certificates issued on the blockchain can not be altered by any person. If someone tries to tamper with it, then verification will fail. This makes data in your digital certificates fully secured as well as traceable. e) No third party requirement: Blockchain verification of digital certificates can be performed by any person having access to the network. There is no need for any third party interference for verification. Digital certificates can be verified even if any organisation that issued them no longer exists. f) For micro-credentialing: Every data remains encrypted in the digital certificates issued on the blockchain. Organisations or businesses can issue "micro-credentialing" for recognizing, career skills, learning and so on. It can help both students and organisations. g) Comes at an affordable cost: Using blockchain is not expensive. With the help of the blockchain-powered platform, you can issue digital certificates for numerous services with ease. You may need no extra software or hardware and be done with an internet connection. So in nutshell, the unique features of blockchain technology make issuing digital certificates easy and tamper-proof. Blockchain technology simplifies and facilities the entire process of issuance of digital certificates. It also helps in the easy transfer of these certificates leading to the expansion of contents and information. We hope in the next few years, more and more organisations will come forward in embracing digital certificates issuance on the blockchain. A blockchain document security system can help you to secure sensitive credentials with ease.

How Can Blockchain Technology Play an Important Role in Banking & Finance?

Posted on October 25, 2021

The importance of blockchain in the banking sector has been growing like never before. Blockchain is changing the way people make payments, and increasing number of financial institutions are investing in blockchain technology for many reasons.

Blockchain it is a technology that endorses trust between trading partners. Blockchain allows to transfer of currency and offers confidence that the transaction is completed securely and successfully. It is a decentralized, distributed, and public ledger that companies use to record transactions across different computers inside a network. Because of the design and properties of blockchain, it is transparent, secure, and nearly impossible to change. Blockchain impacts most of the core workflows in banking, such as keeping records, cybersecurity to currency, debt and even equity management.

Blockchain allows open, inclusive, and secure business networks, along with shared operating models, reduced costs, efficient processes, and new products and services in finance sector. It allows digital securities to get issued within shorter periods, at lower unit costs, with superior levels of customization. Hence, it expands the market for investors, reducing costs for issuers and decreasing counterparty danger.

Quick Benefits of Blockchain for Financial Industry

Benefits of blockchain technology banking finance emerge from the following properties:

Distribution

Many copies of the ledger stay across the network. Each time a person adds a new transaction and block, everybody inside the network gets a copy. There is no single entity that can control the ledger. However, the system is designed to offer everyone the same data.

Immutability

A blockchain offers a correct, chronological history of transactions. Since each person inside the network has a copy, it’s approximately impossible to change or erase transactions or add data that has not been verified. To do such a thing successfully will need a coordinated attack on hundreds or thousands of computers simultaneously, which is nearly impossible.

So, these properties of blockchain have clear benefits for the finance industry. Here are some straightforward ways businesses and banks are harnessing the power of blockchain:

Money Transfers

Transferring money to any country presents many difficulties and challenges for consumers and financial institutions. People send billions of bucks internationally each year, and the procedure is generally expensive, arduous, and mistake-prone.

Blockchain can bring a change. Many leading banks have adopted international payments with blockchain, which saves a lot of time and money. Consumers and users can also use blockchain money transfers to complete their electronic transfers with mobile devices. It avoids the cumbersome procedure of visiting a money transfer facility, standing in queues, and paying fees for any transaction.

KYC Fraud Recognition

KYC process has a vast timeline because of the number of players involved in the procedure of KYC verification. The method includes independent request reviews from third-party vendors and also from other banking institutions. It can end up in duplication of user account data.

Blockchain in banking alters the slow process. A blockchain system permits the authorized users to easily access the same data system rather than every bank and their party vendor upholding siloed customer data portals. It accelerates verifications.

Low-Cost, Direct Payments

Most of the funds move through financial institutions, like banks or credit card processing centers. Each of these steps adds a layer of complication, along with fees that can prove costly. Here, the benefits of blockchain-based transfers for merchants can be like:

Fewer fees: once customers pay with a credit card, merchants pay processing charges that cut into profit. Blockchain payments decrease or remove fees by rationalizing the transfer process.
Eliminated inadequatefunds: Consumers at times pay for services and goods with a bad cheque. It causes a loss and extra fees for merchants and the possibility of a legal annoyance to recover. Blockchain-based payments have the potential to give merchants the confidence of knowing that the transaction is good in a couple of minutes.

Smart Contracts

Contrary to conventional contracts, smart contracts do not include any paperwork or third-party confirmations. The contract is computer-coded, and one can ensure compliance using blockchain. Smart contracts confirm autonomously upon completion of the contract terms.

With smart contract blockchain, the main pieces of the contract are visible, permanent and undisputed. Here, financial institutions can also use secure QR codes that have a unique hash value. The QR code hash value is linked to the hash value of the QR code on the blockchain network. If the hash value does not match, it cannot be accessed. Hence, smart contracts are swift and futureproof.

The Bottom Line

To capitalize on the potential of finance blockchain technology, banks and financial institutions should build infrastructure to form up a global network. If you want to know more about blockchain solutions for your financial business, we at ProofEasy can help you get started.

Tags: blockchain technology