Notarization on Blockchain Definition
Notarization on blockchain is the process through which an event or document is validated and secured using cryptographic hash functions within a block on a blockchain. This method aims to provide a tamper-proof, verifiable and permanent record of the notarized item.
Notarization on Blockchain Key Points
- Notarization on blockchain is based on the validation and securing of a document or event.
- It capitalizes on the immutable nature of blockchain technology.
- The process uses cryptographic hash functions for equal validation and security purposes.
- The result is a tamper-proof, permanent, and easily verifiable record of the notarized data.
What is Notarization on Blockchain?
Notarization in the traditional sense often involves a third-party authority that confirms the authenticity of a document or transaction. However, in the world of blockchain, notarization takes on a digital form. It is an innovative process that enables the validation and secure storage of important information on the blockchain. By leveraging the cryptographic integrity and immutability of a blockchain’s distributed ledger, a piece of data or event can be notarized on the blockchain, creating a verifiable, secure and permanent record.
Why Notarize on Blockchain?
Notarization on blockchain serves to improve upon the limitations of traditional notarization methods. Traditional methods often require physical presence, can be time-consuming, and suffer from slow processing times. It also has costs associated with the notary public’s time and resources. Blockchain notarization, on the other hand, removes the need for a physical intermediary. It provides a quick, cost-effective, and highly secure alternative. Due to blockchain’s decentralized nature, the notarized items are less susceptible to fraud, alteration, or deletion.
When to Use Notarization on Blockchain?
Given its properties, the blockchain notarization process can be used whenever there is a need for trusted verification of a document or event. This includes legal documents, contracts, property deeds, critical business transactions, and more. It’s especially useful in applications where digital records must be preserved in an immutable, transparent, and public way.
Who Uses Notarization on Blockchain?
Anyone who requires a secure, permanent and verifiable record of their notarized documents or events can use blockchain for notarization. This includes organizations in industries like real estate, legal services, and finance. It’s also relevant for individuals who want to independently verify the authenticity of their personal documents.
How Does Notarization on Blockchain work?
The process involves taking the data or event to be notarized, generating a cryptographic hash of the information, and then storing this hash within a block on the blockchain. This block (and the hash within it) can then be verified at a later date to confirm that the original data has not been tampered with or altered since the time of notarization. Given that blocks on a blockchain are chronologically ordered and resistant to modification, this process offers a high level of confidence in the immutability of the notarized record.
