Proof of Existence

notary public stamping  document

The Block Chain can be used to prove that a document existed at a certain date. The way that it is done is that a hash of a document gets stored at an address on the Block Chain. The hash and date is now stored on the Block Chain for all of eternity. A document could then be verified to have existed on the Block Chain at a future date. This would be good for copyright, wills, deeds, and similar. This would be similar to getting a document notarized. It will have a signature stating that the document existed at a certain date. Courts and other legal entities only accept notarized documents from a certified notary. It would be much easier and cheaper to get a document notarized on the Block Chain. It could then be sent over the internet without creating a printed out copy. That would be excellent for the environment since using electricity and computers is more efficient than paper. Think about how much effort is done to bring paper documents across the country. You could argue that an e-mail is also proof of existence. However, an e-mail is harder to verify and make publicly available. It is certainly not as secure of a method as using the Block Chain. E-mails can be erased from existence fairly easily. A transaction on the Block Chain will never be erased.

How would using the Block Chain for this affect the price of a bitcoin? I would argue that the more valuable the Block Chain is, the more secure it would become. And, the more secure that it would become, then everything that the Block Chain is used for that is useful would become more valuable. Miners secure the network and receive bitcoin as a reward. If bitcoins are not valuable, miners will not secure the network. The more valuable bitcoins and the Bitcoin network is, then the higher the price of a bitcoin.

Any parties that have an interest in the Block Chain or bitcoins or any technology that utilizes Bitoin will have vested much and would support the system – they would not let it fail. If they have to buy up all the bitcoins to increase demand and raise the price, then they will attempt to do that in order to secure the digital proofs. The internet is very secure for sending encrypted and non-encrypted data from two points on the network. The Block Chain is built into the internet and it is not going anywhere anytime soon. It allows for encrypted data to be sent over an un-encrypted network.

Bitcoin is a public ledger to verify certain transactions at certain dates. The implications of this are huge. This proof of existence will be important for information that will be online. When an individual or entity creates some digital content, they want proof that it is there’s. If someone can have an immutable proof of existence that the whole world can verify, that is huge! Using the Block Chain for this very task is extremely convenient!  I don’t think Bitcoin or Block Chain will ever go away – it will exist as a historical artifact even after we stop using it. By the time it is obsolete, the human race will have at least inhabited several galaxies. Even then, it may still be useful. It may be one of the longest running and widely used currency, but we can’t say for certainty just yet. We will have to wait and find out. I would recommend buying a few bitcoins just in case if Bitcoin and the Block Chain take off.