While most of us have read about cryptocurrencies like Bitcoin,
Blockchain, and the technology that makes Bitcoin work is essential to records management because it has broad implications for making IP secure and authentic with more significant cost savings and streamlined processes.
In the document management world, paper document verification includes seals, signatures, and watermarks. Digital records do not simplify authentication because they can be modified and copied without knowledge. Are the documents real? Were they modified? What about fraud?
Today some products provide verified document management but can be prohibitive due to cost and sometimes the involvement of a separate party.
Blockchain is a digital mechanism that allows people who don't know each other to engage in trusted transactions with confidence in the integrity of the assets being exchanged.
Blockchain accomplishes this by placing an authentication mechanism into the document asset and using a closed-loop tracking system to prevent modification, deletion, etc. Many document management systems will synchronize documents so that when someone updates a copy, all other users will receive a new version.
Blockchain works similarly, except it will add a layer of code called a block to the process. The block is just a series of unique letters and numbers protected by public key encryption. Public key encryption is necessary because it allows the owner of documents to control the document without giving up personal information like a name, number, SS #, etc.
When a new document is added, everyone in the network gets a certified copy containing the embedded block. When and if a document changes, a new block is added to the record, synced to the network. The block serves to audit and keep track of the version of the document.
ADVANTAGES OF BLOCKCHAIN
- Anonymity - Engaging in exchange without revealing identity
- Decentralized registry - Creation of a blockchain without registration to a central sources
- Custom Security Blockchains - limit what a person can do in the chain.
- Multiple assets types - Documents, Images,
How Blockchain Helps with Records Management
Cost savings - Because a blockchain does not require an intermediary making, the processes cost less and reduce transaction time. There is also no need for oversight as Blockchain policies themselves.
Efficiency - Transaction cycle time is reduced. Sometimes transactions can take days. This can be reduced to minutes or even seconds.
Security - Limits who can participate in a transaction.
Flexibility – blockchain can govern any digital asset, including email, word/excel documents, videos, and other document types.
In summary, Blockchain can bring tremendous value to Records Management.