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Blockchain Secures Document Authenticity With Smartrac's dLoc Solution

The company plans to release its new NFC-based paper documentation and certificate verification and authentication solution with Factom's blockchain technology to ensure that documents and related data are secure against fraud.
By Claire Swedberg

While encrypted strings can be reversed back to their original decrypted form if an interrogator has the correct key, Deyoung says, that is not possible with a hash value. Hashing works in one direction only, and cannot be altered by another reader. The dLoc solution, he notes, uses both a hashing function (for the document data) and encryption (for sending the hash to the cloud).

Users can verify the authenticity and integrity of the chips and their data with a quick offline check (with the reader not linked to the Smart Cosmos software or public blockchain database), or more thoroughly access detailed information online. "Also," Deyoung states, "we're able to secure all of the components—from the tag to the readers to the documents—onto the cloud, which prevents bad actors from introducing cloned components into the issuing system."

By using the hash value and Factor's blockchain software, Deyoung explains, the system creates a permanent, immutable record that can never be altered, copied or destroyed.

"We've partnered with Factom in the U.S. to assist with bringing the technology to market," Deyoung says, "and to gain access into areas that we [Smartrac] have historically not been involved [with]." This includes the banking and health-care sectors.

One typical use case is in the financial sector. If a bank were to issue a loan document and then wanted access for in-house personnel to easily track that document's contents, a dLoc tag would be attached to it and authorized users could read the tag via an NFC reader, enabling them to access the related data, provided that they had the proper key. In the case of vehicle registration, on the other hand, a car may change ownership multiple times and a potential buyer may want to view the ownership chain. With the dLoc tag attached to the document, an individual could use the blockchain with a password to identify who owned a particular vehicle and when. "Furthermore," Deyoung says, "the user can separate public data from private data so that only other users can see what they need to see for authentication."

Smartrac unveiled the solution last month at the TRUSTECH show in Cannes, and this month at Singapore's High Security Printers Conference. "The feedback has been tremendous," Deyoung reports. "It's a pivot from our standard product line," he says, adding that Smartrac plans to take the next month or so to educate its sales and support staff before rolling out the dLoc solution in January.

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