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.

Besides Bitcoin, what are other solutions You can apply Blockchain for?

Posted on September 7, 2021

It was the eminent application cryptocurrency Bitcoin, which got launched in 2009, that effectively uses Blockchain. Hence, mostly, Blockchain has been associated with Bitcoin. However, today, Blockchain is not just limited to bit coins; it is getting mainstream. But what really is Blockchain? Blockchain is a shared, unchangeable ledger that facilitates the procedure of recording transactions as well as tracking assets in any business network. Here, an asset may be tangible like a house, vehicle, land, cash) or even intangible like patents, intellectual property, copyrights, and branding. Practically, you can track and trace anything of worth on a blockchain network.

Blockchain technology is a distributed ledger technology (DLT), a type of digital system for recording transactions and associated data in different places at the same time. Each computer in a blockchain network upkeep a copy of the ledger to avert any failure. Moreover, all the copies get updated and validated instantaneously. In simple words, Blockchain has been a record-keeping technology developed to make it impossible to hack the system or forge the information stored on it.

In blockchain technology, all the network participants enjoy access to the distributed ledger and the immutable record of transactions. With such a shared ledger, transactions get recorded just once, removing the replication of effort that has been characteristic of conventional business networks. Moreover, not a single participant can alter or tamper with a transaction once it is recorded to the shared ledger. If there is any mistake in any transaction record, in that case, a fresh transaction is added to reverse the mistake, and both the transactions then get visible.

Smart Contracts

Smart contracts are possibly one of the most effective tools that are linked to Blockchain. These can allow the transfer of everything from bitcoin and fiat currency to even goods transported across the world.

Smart contracts are fundamentally automated agreements between the contract creator and that of the recipient. Once written in code, this agreement is scorched into the Blockchain, making it immutable and irreversible. Smart contracts have headed to the network’s collection of decentralized applications (DApps) and different use cases.

An advantage of blockchain networks is the automation of tasks that conventionally needed a third-party intermediary. For example, a bank need not approve any fund transfer from a client to any freelancer, as the procedure can arise automatically. Thanks to the concept of the smart contract. All that is needed is for two parties to settle on a single concept.

Identity Management

Most digital transactions demand that individuals disclose specific personal information before they can proceed to access services. For instance, before any financial transaction may get carried out on platforms like PayPal, Amazon Pay, etc. users have to input their login specifications like personal and financial details. Each time a user discloses his information, it is stored on different internet databases and hence, it rises security risks.

With blockchain, many businesses are creating a platform that guards individuals’ identities against any theft. After all, the technology can even help companies build robust blockchains that manage the problems of authentication and reconciliation faced in diverse industries. Hence, Blockchain has the potential to develop an identity management system that gives complete control to users. It also allows users to decide the data they desire to share across diverse transactional mediums while guarding their identity against theft.

Data Integrity

Data integrity means the trustworthiness of data. It includes the maintenance of, and the guarantee of the rightness and consistency of, data over its whole life-cycle. Nearly all companies must maintain data integrity and comply with proper government rules and regulations regarding it. However, every year, many businesses lose more than millions of pennies because of data integrity and data security issues.

Blockchain could be the solution to improve data integrity and integrity information to the utmost standards. By design, blockchains are integrally resistant to any modification of information. Blockchain ledgers are immutable, which means that in case information addition or any transaction has been made, it cannot get edited or deleted.

Moreover, blockchains are not just a data structure but a promptness mechanism for the data structure, so evidence of the history of data is conveniently re-portable and updated to the second. Companies encountering audit, regulatory compliance requirements, or even legal challenges may use blockchain technology and Blockchain-based QR codes to enhance data integrity and save millions.

The Bottom Line

Thus, blockchain is a future-proof way to expand your business! If your organization is also looking forward to applying Blockchain for different solutions, talk to us at Proofeasy today.

Tags: blockchain technology