Traditional document verification mostly involves an insecure and time-consuming exchange of physical documents due to the presence of many intermediaries. It is vulnerable to fraud and data loss. On the other hand, blockchain-based document verification is highly secure, hassle-free, and cost-effective. In this article, we will explore what makes blockchain-based document verification more effective and robust than the old and obsolete traditional document verification system.
- Centralized vs Decentralized
In a conventional document verification system, one needs to rely on physical entities such as government organizations or banks to verify various documents. These intermediaries, however, can take their sweet time to verify the authenticity of documents. The overall process is time-consuming and costs you a significant amount of money (Sometimes you even have to feed under the tables!)
On the other side is a blockchain-powered document verification system that runs on a decentralized system. The absence of a central authority and multiple intermediaries means that the verification system is distributed across the network. This helps to significantly reduce the time and money required for verifying your documents. Moreover, you don’t have to go from department to department, if you have different types of documents to verify. Blockchain platforms like DocChain.IO support the verification of an array of documents including educational certificates, licenses, insurance papers, recommendation letters, NoCs, ID cards, govt. orders, and many more.
- Trust-based vs Math-based
If only all the world was made of faith and trust and not pixie dust (Sorry James Barrie, the world has changed a lot!). In a traditional word of document verification, you are at the mercy of several entities. As such, trust can be a scarce commodity. The old tools of trust, such as stamps or signatures can be easily forged. With a plethora of technology any John, Jani, or Jnardhan can make a fake document that is hard to detect with the naked eye.
What they can’t do is break a cryptographic algorithm or a protocol. Blockchain-based document verification is highly secure and uses a combination of digital signatures, cryptographic hashes, and consensus mechanisms to store and verify any document. These mechanisms make it difficult for fraudsters to issue fake documents.
- Time-consuming vs Quick
Let’s say you need a home loan. You need to submit various documents, such as income statements, tax returns, and bank statements. Banks usually take weeks to verify your documents with the current process. Let’s not forget the number of bank visits you will need in this entire process! (How many of you in Bangaluru are willing to visit a bank beating the traffic?)
With blockchain-based verification, you don’t have to worry about traffic or any intermediatory involved in the verification process. Blockchain can verify any document in a matter of minutes. Any document added to the blockchain goes through various consensus mechanisms. Anyone with access to the blockchain can verify the authenticity of the documents.
- Costly vs Cost-effective
Document verification can be a costly affair, especially in India where things don’t go smoothly through the usual channels and you more than often have to find a way to bend the system. The systems involved in the verification process also have to incur expenses related to printing, mailing, and handling physical documents. These expenses reflect in the fees charged for verifying the documents.
Blockchain-based document verification does not rely on intermediaries. As mentioned above, various consensus mechanisms take care of verifying the documents. Additionally, the verification process is automated, which further reduces the expenses involved. The process is completely digital and no transport of physical documents is required.
- Limited Accessibility vs Global Accessibility
A major limitation of traditional document verification is accessibility. The process is limited to a specific state, country, or region. As the physical distances between the parties involved in the verification process increase, the time and money also go up accordingly. The expenses and time involved can even be higher in case there are international parties involved. There is also a risk of change in the verification process. A certain document or process in your country may not be recognized or valid in another country.
Blockchain-based document verification does away with all these issues as it can be standardized and accessed anywhere in the world, all you need is a stable internet connection. The process has no geographical limitations, making it more accessible to individuals and organizations.
- Susceptible to Fraud vs Tamper-proof
Traditional document verification involves many intermediaries, which makes it prone to fraud. Old ways of authentication, such as signatures and stamps, can be easily faked. This can lead to financial losses and even loss of identity. Fraudsters are finding innovative ways to bypass the usual checkpoints that detect counterfeit documents.
In such scenarios, blockchain-based document verification is the only robust solution. Blockchain platforms rely on cryptographic hashes and digital signatures to verify documents. The entire process is tamper-proof and ensures the authenticity and integrity of documents. Anyone without access to the platform cannot alter the documents. Any changes made in a document are visible to the parties involved.
- Paper-based vs Digital
Traditional document verification is all kagazi – paper-based and can be easily stolen, damaged, or lost. This can lead to huge financial losses or additional costs. The theft or destruction of documents can compromise the authenticity and integrity of documents.
Blockchain-based storage and verification of documents are entirely digital and easily accessible to those with valid access to the blockchain network. The decentralized nature of blockchain-based verification platforms makes it nearly impossible to destroy or alter the content of documents. It is the most secure and reliable process of document verification and can be leveraged to store critical or sensitive documents.
- Single Point of Failure vs Resilient
In traditional document verification, all it takes is a hacked server or downtime to cause significant delays in the verification process. This single-point failure can be costly or even compromise documents.
What makes blockchain-based verification a revolution is its resilience to data loss or corruption. The decentralized and distributed platform replicates and stores documents across multiple nodes. The absence of a central server or physical documents completely takes away the risk of a single point-failure, unlike traditional document verification. With the rise in cases of cyberattacks, blockchain-based document verification is the only secure way to store and verify critical or sensitive documents.
- Limited Transparency vs High Transparency
Traditional document verification is not known for its transparency due to the involvement of multiple intermediaries and processes. There is no easy way to track the verification process. It’s like giving a school exam and eagerly waiting for the result! You get no clear idea of the status of verification. In many cases, the process is biased or prone to errors. This can be time-consuming and frustrating at times.
Blockchain-based verification is transparent at every stage as all the transactions are recorded and can be accessed by anyone with proper credentials. The verification process is visible, fair, and unbiased. DocChain.IO, a blockchain-powered document verification, is known for its trust infrastructure in storing and verifying various critical or sensitive documents.
- Limited Security vs High Security
Traditional document verification is highly susceptible to identity theft, data breaches, and hacking. Blockchain-based verification is highly secure as it uses cryptography and distributed consensus mechanisms. It protects your information from cyberattacks or data breaches. It is virtually impossible for fraudsters to modify or manipulate the data on a blockchain platform without being detected.
Conclusion
The above-mentioned differences between traditional document verification and blockchain-based document verification make it clear that the latter is the future of document verification. Blockchain-based document verification is better in each and every aspect of the process including security, transparency, accessibility, trust, and time.
With robust blockchain-based document verification platforms, such as DocChain.IO, you can be assured about the authenticity of various kinds of documents. You can easily track the verification process and ensure that your sensitive data does not fall into the wrong hands.