{"id":710,"date":"2021-02-12T08:00:34","date_gmt":"2021-02-12T08:00:34","guid":{"rendered":"https:\/\/riftofheroes.info\/programming\/right-cliq-staging\/?p=710"},"modified":"2026-05-19T06:35:40","modified_gmt":"2026-05-19T06:35:40","slug":"document-safety-using-blockchain","status":"publish","type":"post","link":"https:\/\/riftofheroes.info\/programming\/right-cliq-staging\/document-safety-using-blockchain\/","title":{"rendered":"Rethinking Document Safety Using Blockchain and QR Technology"},"content":{"rendered":"
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Most of the modern processes we work with are highly dependent on data input. While autofill can help us perform searches across Google, documents in physical & digital form are a common medium to transmit information for several businesses and government agencies. Hence, understanding document safety is equal to understanding a significant disease at the molecular level.
\nThe biggest problem with document frauds is that they are often uncovered in retrospect. Businesses and law enforcement authorities often know about a possible document fraud after the fraud has been executed. This creates a scathing need for a better understanding of document frauds and how Blockchain paired with QR Technology can help in their prevention.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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The Growing Concerns for Document Safety<\/h3>\n<\/div>\n
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Document fraud has become a prevailing concern across the globe. As more businesses, government bodies, and individuals get affected by it, exploring the landscape of document fraud has become a necessity.<\/p>\n<\/div>\n

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Document Fraud Statistics<\/h3>\n<\/div>\n
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The data given here goes to show that a large set of individuals, businesses, and government bodies have been witnessing document fraud for the past few years now:
\n1. According to an identity fraud study conducted by a research firm, over\u00a014 million<\/a>\u00a0people in the USA faced identity fraud.
\n2. The victims ended up paying over $1.7 billion in expenses they had to bear, attributable to the frauds.
\n3. Card fraud accounted for nearly $14 billion in 2018.<\/p>\n<\/div>\n

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Cataloguing Document Fraud<\/h3>\n<\/div>\n
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Interpol<\/a>\u00a0has published an inventory of document fraud categories. This can be used as a starting point to map the entire set of risks the businesses face:<\/p>\n

1.\u00a0Counterfeits:<\/b>\u00a0These are the unauthorized copies of an original document. They might be used for a wide range of purposes \u2013 showing creditworthiness or for identity fraud.<\/p>\n

2.\u00a0Forgeries:<\/b>\u00a0Such documents are edited copies of original documents. Suppliers and customers might use them against a business for favourable deals. Employees may use such documents to siphon funds.<\/p>\n

3.\u00a0Pseudo Documents:<\/b>\u00a0These are documents that may or may not have genuine data. However, since a trustworthy intermediary does not authenticate them, a business cannot completely rely on them.<\/p>\n

4.\u00a0Fraudulently Obtained Documents:<\/b>\u00a0Such documents can carry authentic, sensitive, and principal data. However, they are obtained from an unauthorized source, and hence deals based on them might be deemed null & void in the court of law.<\/p>\n

5.\u00a0Documents Used by an Impostor:<\/b>\u00a0These are genuine documents that do not belong to an individual or an entity that claims to own them.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Case in Point: Deploying Blockchain for Document Safety at Scale<\/h3>\n<\/div>\n
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Blockchain has the potential to serve as a central solution to deal with document fraud. Several supply chains still rely on physical documentation for the transit of goods.<\/p>\n

Each touchpoint that requires a document can be susceptible to fraud. Hence, it is worthwhile to examine the recent developments in deploying Blockchain to prevent document fraud at scale:<\/p>\n<\/div>\n

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IBM Deploys a Blockchain System for Contractor Management<\/h4>\n<\/div>\n
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IBM recently announced that it had created an internal system that uses its\u00a0Blockchain technology<\/a>\u00a0for end-to-end vendor invoice management. This is one of the critical areas impacted by document fraud.<\/p>\n<\/div>\n

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Problem Statement :\u00a0<\/b>The general modus operandi among enterprise customers includes an internal Purchase Team and an external Procurement Contract Services Provider. Then there are the vendors and suppliers further downstream. This creates a large set of challenges in contractor management, as reconciliation and timely payments become a major issue.<\/p>\n

Hyperledger Fabric :\u00a0<\/b>The IBM Blockchain network uses its technology to integrate timesheets and payments systems across a traceable distributed ledger. The firm has used\u00a0Hyperledger Fabric<\/a>, a project created to provide plug-&-play consensus and membership services on Blockchain.<\/p>\n

Possible Additions :\u00a0<\/b>The firm also stated that it plans to add smart contracts to transform its payment systems into rule-based payments systems for streamlining all external invoice closures.<\/p>\n

Results<\/h5>\n

<\/b>IBM has internally implemented this entire project for its management purposes, not in a client use-case. However, it still shows a lot of promise in terms of the possible benefits:<\/p>\n

1.\u00a0Eliminated Invoice Blocking:\u00a0<\/b>The firm can now quickly and efficiently vet invoices and release payments. This reduces the possibility of increased account payables and gives the firm a clearer picture of its liquidity.<\/p>\n

2.\u00a0More Robust Compliance:\u00a0<\/b>IBM now has to spend lesser time on manual due diligence of each incoming invoice, irrespective of how many external agents and contractors are involved. All of this happens without losing track of compliance standards the firm already has in place.<\/p>\n

3.\u00a0Quicker Vendor Onboarding:\u00a0<\/b>With a standardized process, the technology giant can create scalable, standardized practices to help vendors get accustomed to its operations quickly.<\/p>\n

4.\u00a0Reduced Cost Per Invoice:\u00a0<\/b>Since the resources required to vet in an invoice, the quantum of invoice discrepancies, and increased visibility of outward payments come up as convergent benefits, the firm can expect its cost per invoice to dramatically go down.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Using Blockchain and QR Codes for Document Safety at Scale<\/h3>\n<\/div>\n
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While the IBM solution is great for its internal purposes, the small, medium, and large-scale enterprises still need a ready to deploy and easy to integrate the solution. VeriDoc Global’s Blockchain-powered platforms are providing the exact set of functionalities required to solve supply chain issues:<\/p>\n<\/div>\n

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While the IBM solution is great for its internal purposes, the small, medium, and large-scale enterprises still need a ready to deploy and easy to integrate the solution. VeriDoc Global’s Blockchain-powered platforms are providing the exact set of functionalities required to solve supply chain issues:<\/p>\n<\/div>\n

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A. VeriDoc Global Verification System: Proof of Concept<\/h3>\n<\/div>\n
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VeriDoc has created a global verification system backed by Blockchain for document safety. So far, firms that work with several vendors and contractors had to work with limited visibility in the downstream. This created counterparty risks and reduced accountability for the enterprise customers to test.<\/p>\n

VeriDoc has solved that issue by adding QR Codes and Blockchain. The manufacturer can produce a good and generate a unique hash value using VeriDoc. This hash value is embedded along with a QR Code available on the package.<\/p>\n

Each time the goods change hands in the supply chain, a traceable trail is created in the Blockchain ledgers. This way, everyone in the supply chain can now see the \u2018digital handshake\u2019 between suppliers, vendors, and contractors, providing greater visibility and document safety.<\/p>\n

The hash values are unique, and make sure the ledgers have not tampered with. The QR Codes make it easy for anyone and everyone in the supply chain to stay updated with the most recent information added to the Blockchain ledgers.<\/p>\n<\/div>\n

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B. Benefits of Using QR Codes and Blockchain in Supply Chains<\/h3>\n<\/div>\n
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The biggest benefit of using the technology is that it eliminates the need to use documents that are easily susceptible to tampering and pose risks to data integrity. Besides that, QR Codes and Blockchain have opened up a large set of benefits:<\/p>\n

1. It increased downstream visibility to trace quality issues.<\/p>\n

2. Easier for suppliers to provide credit to upstream customers.<\/p>\n

3. Simplified trade financing allows expedited movement of goods.<\/p>\n

4. Key vendors can examine the resilience of the supply chain easily.<\/p>\n

5. Everyone is on the same page, creating end-to-end transparency.<\/p>\n

6. The \u2018digital handshake\u2019 creates a trace of vital information. Any proprietary information can still be masked without losing trace ofthe active movement of goods.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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In Conclusion<\/h3>\n<\/div>\n
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While document safety remains a concern globally, costing billions of dollars to both retail and enterprise customers, solutions like VeriDoc are simplifying the entire supply chain management process.<\/p>\n

With added transparency, each touchpoint becomes a checkpoint of credibility and transparency, allowing larger consumers in the supply chain to easily conduct due-diligence, evaluate accountability, and mitigate counterparty risk.<\/p>\n

To know more about how VeriDoc has actively eliminated the room in supply chains for most of the document fraud variants as catalogued by Interpol,\u00a0click here.<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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