Trusting that your documents are safe using blockchain technology

Safeguard Your Valuable Documents Using Blockchain Technology

Blockchain adds a layer of security

Storing and verifying documents on the cloud is always faced with some level of scrutiny by institutions, and it’s no surprise why. In a world riddled with identify theft, fraud, and firewall attacks the pressure to keep financial information, legal documents, and contracts safe is insurmountable.

To combat the increased threat risk and to provide a secure alternative, blockchain technology is often leveraged to add an extra layer of security.

ProofEasy uses a unique hash value to verify whether a document is true and correct. Hash values can be compared to the DNA or fingerprint of a file, whereby no two hash values are the same.

The original document is processed through a cryptographic algorithm and a hash value is produced which identifies the original document. If the document is modified in any way, the value of the hash will also change significantly.

Using a cryptographic algorithm means that customers are not required to store the original document on the blockchain and their information remains private.

What is Blockchain technology?

Blockchain technology can actually be described by breaking block and chain down and describing how each part works. Each “block” in the chain is a digital piece of information that are comprised of transaction information, such as time, dollar amount etc. The next piece of information that is stored in the blocks includes the participants in the transaction, acts as a digital signature using unique identifiers.

The final piece of information stored is a unique code called a “hash”, this adds the final layer of security that ultimately identifies the block from every other block.

As the user continues to add more pieces of data to the original block, another link in the chain is added to track the unique number of transactions. The links within the chain are what continue to increase the complexity in which the data is stored, which essentially insulates the data that is being stored with layers of encryption and security.

blockchain technology

What makes Blockchain so secure?

Information is stored in blocks and each of the blocks is connected with other blocks containing data before and after it. Given the complexity of how the data is stored, it would make hacking near impossible since the hacker would have to break through each block to reach the data that they want to tamper with. The mechanism in which data is stored within the blockchain is what safeguards all data-points and linear protective measures.

Further, the records inside of a blockchain are secured through cryptography. This means each network participant has its own private key and these act as a personal signature. If the record is altered in any way the signature becomes invalid and the network is notified of this tampering. ProofEasy works this way, everyone on the document chain is notified of any alterations to the documents that are loaded and shared on the network.

Can blockchain be trusted for legal or financial documents?

The short answer to the question is yes! There have already been some significant changes to both the financial and legal industry as a result of blockchain technology. The introduction of “smart contracts” which basically allow people to transact and exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

The shift towards moving to paperless environments requires institutions and firms to look at advancements in technology to make this possible while keeping information secure. Blockchain technology has been adopted by a multitude of industries to keep up with the demands of doing business in a secure way.

Benefits to your business leveraging patented blockchain technology:

We have covered a brief overview of what blockchain is and the security features of the technology. Now, we uncover the top five benefits there are to leveraging the technology:

1. Blockchain technology allows for verification without requiring third-parties.

2. The data structure in a blockchain cannot be altered or deleted.

3. All the transactions and data are attached to the block after the process of maximum trust verification. There is a consensus of all the ledger participants on what is to be recorded in the block.

4. The transactions are recorded chronologically so all blocks in the blockchain are time-stamped.

5. The origin of any ledger can be tracked along the chain