How can Blockchain Help for Fraud Prevention?

Blockchain Prevents Fraud Prevention

Blockchain has most popularly been used to authenticate different types of cryptocurrency. But, as many of you already know, the possible scope of the application of Blockchain is a lot broader than that.

Numerous industries have already begun to use Blockchain or are energetically looking into it. For example, cloud storage, anti-counterfeiting, art and ownership, governance, Internet of things, and digital identity. Whether protecting private data or digital identity; Blockchain has started playing its role.

When protecting digital identities, commerce and finance industries have a specifically robust use case for Blockchain. The sovereign and decentralized nature of Blockchain addresses issues such as data inaccessibility, data insecurity, and identity data fraud. 

Blockchain Technology Secures Digital Assets

The decentralized nature of Blockchain is assistive in securing digital assets. It gives the user authority and power to create their own SSI (not stored on a centralized database). Since there is such a level of sovereignty, being a user, you can manage manifold identities. Although, this relies on what online activities you want to perform. Both types of public and private blockchains permit diverse information sharing so that users can perform a diversity of transactions with public and private entities. Hence, more autonomy for the user and a better secure way to manage all digital assets.

Data is Secure with Blockchain  

Blockchain is a decentralized technology operating as a distributed ledger, and it is shared across multiple devices across the world. All the data that gets recorded to a specific ledger is stored in a distributed way. Hence, it eliminates the single point of failure. Not to miss that most of the cybercriminals presently tend to target the central data repository. With Blockchain, breaking into an individual block to steal any recorded information is virtually impossible. Altering or in any other way hampering with a thread of data entered to any blockchain-ledger is even less probable.

Moreover, data blockchain has allowed a new kind of storage for any virtual assets. These assets can be like healthcare records, legal documents, payment, or identity information. When these data points get collected and entered into the ledger, there is no way anyone can copy or duplicate that information without the explicit permission of the owner, granted technologically. The point is safely exchanging these cryptographically protected records, however, is easy. The sensitive information never changes hands. The two users will exchange their keys for accessing as well as reviewing the specific information. And any of the parties can revoke such access at any time.

Prevention of Digital Fraud Using Blockchain

The concept of Blockchain is getting applied to different industries, and ad tech is one of them. You can apply Blockchain here in a way that provides a more transparent and effective way of running online marketplaces. Advertisers can use a distributed system and a decentralized ledger to evaluate every ad and impression easily. Hence, they would not get betrayed. Advertisers can even use Blockchain-based secure QR  codes that carry a unique hash value.  Hence, if anyone uses the QR reader to check the ad, the system evaluates the hash value given into the QR code and compares it with the hash value on the Blockchain. Hence, it displays the correct ad linked to the hash value. It helps to upkeep the authenticity of the ad right from the beginning. It is not just limited to the ad industry but anything from education certificates data to IT data and more.  If anybody tries to change authentic data input, the hash will not match the initially generated hash. Hence, it guards you against false tampering with your data. 

The revolution is already going on with companies bringing forth front-line inventions and publishers, media buyers, and advertisers using marketplaces that Blockchain fuels. It allows them to use encryption for the utmost possible security. Organizations and professionals today recognize Blockchain as the much-required component that provides the maximum level of transparency, which has intensely been missing in the digital advertising space.

The Bottom Line

When talking about fraud prevention, the future of most industries is going to depend on Blockchain. So, please don’t get overwhelmed and talk to us. We are right here at Proofeasy if you need help defining a role, specialist insight to help shape your blockchain-related ideas or expert assistance regarding blockchain solutions like secure QR codes.