Notarization

Introduction

• Notarization in blockchain: Record and verify digital documents or transactions on a blockchain network.

• Purpose: Authenticate and ensure the integrity of the information.

How It Works

• Step 1: Convert item to be notarized into a digital document (if not already).

• Step 2: Create a cryptographic hash of this digital document.

• Step 3: Add the hash to the blockchain.

• Step 4: Authenticate the document at any time by repeating the hashing process and comparing it with the one stored on the blockchain.

Benefits of Blockchain Notarization

• Integrity: Ensures the integrity of the document as even the slightest change in the document would result in a different hash.

• Decentralization: Blockchain's distributed nature ensures multiple copies of the same data, reducing risk of data loss or tampering.

• Transparency: All transactions are transparent and can be tracked back to their origin.

• Cost-effective: Reduces the need for third-party services, thus saving cost.

Notarization in Smart Contracts

• Smart contracts can automate the notarization process on blockchain.

• Typically involves creating a smart contract function that records the hash of a document and timestamp of notarization.

• Can later verify notarization by comparing the stored hash with the hash of the document in question.

Use Cases

• Supply Chain: Authenticating and tracking items through the supply chain.

• Real Estate: Documenting ownership and transfer of properties.

• Intellectual Property: Proving ownership of digital creations like music, art, and literature.

• Certificates: Authenticating educational, professional, or other types of certificates.

Considerations

• Privacy: Public blockchains are transparent, which may not be suitable for sensitive documents.

• Gas Fees: Transaction costs on certain blockchains like Ethereum can be high.

• Storage: While blockchain can store small amounts of data like hashes, storing larger data is often done off-chain.