Blockchain Technology in Document Management

by | Dec 14, 2021 | Digitization, Financial Services

Blockchain Technology in Document Management

Everyday hundreds of thousands of documents are handled and processed by Company’s around the world. Some have adapted to the times and process these documents digitally, however, some still rely on a completely manual paper-based document management system.

Managing such document flows is one of the major headaches for enterprises and any inefficiencies lead to massive disorganizations that not only bear the risk of data security but also act as time sinks, eating heavily into operational efficiencies.

Many organisations across the globe have now turned to digitisation to solve the problems around manual document processes. Companies are now incorporating document management solutions that allow them to automate a large part of their work processes. These platforms range from the recognition of the documents itself, to the clarification and processing and management all while guaranteeing the integrity and security of the data.

The innovative solution that is blockchain

One of the key realisations in the world of modern technology has been the need for ensuring a secure, efficient document-management framework – as it is becoming increasing crucial in mitigating the significant inefficiency of paper-based documentation.

Today, blockchain has gained heavy recognition and an increasing number of companies are experimenting and implementing the distributed ledger technology and similar systems. Blockchain is perhaps the most significant technology to date for the management and storage of documents and other records. It can present a revolutionary platform to the financial sector, educational institutes, and government bodies through which they ensure the safety and security of sensitive data.

Blockchain, in its most basic form, is a digital mechanism that enables people who don’t know each other to engage in trusted transactions with full confidence in the integrity of the assets being exchanged. This allows for securing and authenticating intellectual property at lower cost and higher efficiency.

Here are a few ways in which blockchain can be implemented for better document management:

1- Storage: Safer and secure data protection and storage guaranteeing that documents cannot be tampered with.
2- Sharing: By using blockchain technology in the document management system, businesses can eliminate the risk of data corruption or unauthorized access while still guaranteeing safety and reliability standards in the exchange or sharing of documents.
3- Tracking: Blockchain allows for the tracking and certification of any action performed by users within the system, like the creation, alteration, signature, delivery, and receipt of documents.
4- Scanning: Blockchain technology allows businesses to certify the reliability of any paper document during the scanning process. It can also generate a physical sticker/QR code to certify compliance with the digitized version of the document registered on the blockchain.
5- E-signatures: Businesses can integrate document signature features into their documents thereby allowing for a simple method to share and sign any documents which are also considered legally verifiable.

Chainlink for Smart Contracts

Smart contracts are digital contracts that are stored on a blockchain and are automatically executed when predetermined terms and conditions are met.

Through a decentralized oracle network, Chainlink allows blockchains to securely interact with external data feeds and payment methods, providing critical off-chain information needed by complex smart contracts to become the main form of digital agreements. Chainlink turns your smart contracts into hybrid smart contracts, giving them access to real-world data and services while maintaining the security and through blockchain technology.

Blockchain Technology

 In a nutshell!

It can be clearly understood that any business undergoing digital transformation can significantly benefit by implementing a document management system. It not only saves time, but is cost effective, and significantly increases operational efficiencies as information and documents are made available in real time.