From manufacturers to suppliers to retailers and financial institutions, each entity needs a way of validating its business partners’ identity, authorization and certificate authority. You can check What to know before investing in crypto to begin bitcoin trading with the right tools, trading strategies, and guidance from experienced traders. But when goods are shipped worldwide, it can be challenging to figure out who is responsible for who.
Blockchain solutions have been developed that make this process vastly more accessible. Much of the complexity around shipping and distributing goods worldwide can be abstracted. By checking which entity is responsible for each shipment on the blockchain, there is a considerable decrease in the risk that people will ship the wrong or lose the right one. The idea is to use this technology at several places during the life cycle of a product.
The success of any system that uses blockchain solutions depends on each organization having access to a public ledger which lists all transactions made in the system. When there is a dispute, it is easy to check the transaction details on the blockchain to see if the user made the proper transaction with the correct entity.
But it is only valid when everyone has access to the ledger. The technology will be useless if each organization has its own private version of it on its own server, so no one can verify where an unauthorized product comes from or who bought it. Blockchains hold great potential for making authentication more efficient and trustworthy in commerce, finance and government. Let’s discuss the pros of blockchain solutions for authentication and authorization.
Blockchain authorization and authentication in voting:
In a recent election held in Estonia, where companies used the blockchain for authentication and authorization, each person was given an identifier, and their vote was recorded on the ledger. The next time they voted, they were asked to confirm their identity with a fingerprint and face scan. If they had already voted, the vote got added to the ledger. It meant that people could check where their votes went by checking whether they had already voted or not. Still, it also meant that no one could impersonate another person’s identity because each person’s identity is private and encrypted in the blockchain system.
Blockchain solutions for businesses:
A viable blockchain solution for business will improve every element of this process. For example, the same technology that assures the legitimacy of transactions through a public and encrypted ledger can also be used to ensure the authenticity of the merchandise.
Suppliers could use the blockchain to verify that a legitimate supplier has created each item or that it is not coming from one that has been proven to have misappropriated goods. The same system will reduce inventory fraud and eliminate counterfeit items from entering commerce.
When it comes to shipping and moving goods, the blockchain can be used by companies to ensure that every step of the journey is monitored and verified. For example, whenever a container is opened, and a new bill of lading is issued, all parties can authenticate and authorize the transaction on the blockchain.
It will reduce theft, provide security against unauthorized access to data and eliminate paperwork by automating transactions. Blockchain solutions have already started being implemented in businesses across all sectors.
Blockchain authentication in verifying records:
The transparency of a blockchain ledger and its ability to be used as an authentication tool are substantial benefits in verifying records. Without the technology, it would not be possible to ensure that each party has access to the same blockchain ledger.
For example, suppose a company wanted to prove that it had sold a particular investment product. In that case, blockchain solutions could digitally sign the certificate and create a document that was then stored on a public ledger. The user can trace this document back to its source, and any changes made to it can be traced in subsequent transactions, making this system far more secure than traditional means of issuing certificates or verifying documents like identity cards.
Blockchain authentication for financial exchange:
The idea of using a blockchain for authentication is not a new one. The technology has already been used during various cryptocurrency transactions, especially in high-value financial exchanges between financial institutions and private individuals who do not know each other.
The user could use a smart contract on the blockchain to set up an escrow account that contains funds until the transaction is complete. The system could also reduce fraudulent activity by ensuring an authorized person or organization issued it and that it has not been tampered with.
Blockchain authentication in government affairs:
The government can now track who has received what and when. As a result, it will reduce the amount of fraud, waste and unnecessary expenses associated with the current process of issuing and verifying documents used by governments worldwide.
Government organizations will be able to keep track of all issues related to food, medicine and other essential supplies they need to distribute to citizens more securely via a blockchain-based system that increases transparency, accountability and trust in government.