There are various forms of tools available for blockchain networks today. Each instrument brings its own unique advantages and trade-offs that can be leveraged for specific use cases.
Proof of Existence (PoE) is an intriguing proposition that is employed by several platforms for its benefits in verifying the ownership and authenticity of computer files. As a leading blockchain and cryptocurrency development company, we at Sara Technologies offer PoE integration for your file storage integrity and provenance needs.
What is Proof of Existence?
Proof of Existence is a decentralized public notary and digital computer file authentication system that verifies the existence of specific computer files at specific times via timestamped transactions in the Bitcoin blockchain. It is an excellent tool for digitally signing agreements, proving data ownership without revealing the data, document timestamping, and checking for document integrity.
We leverage Bitcoin’s decentralized computing power to allow our customers to verify the existence of a document or file at a particular tiProof of Existence (Poex.io) is the original blockchain notary service that exists as a core and web app. me.
Initially developed by Manuel Araoz and Esteban Ordano in 2013, PoE is used by HeroNode, DragonChain, and Poex.pp. It is simple to use and only requires that a user input the document file or the hash of the file into a field that verifies its timestamp, ownership, and integrity without revealing the content of the file.
Importantly, documents using PoE are not stored in a database or the Bitcoin blockchain development. Only the cryptographic digest (hash) of the file is stored, which allows for transparent and authentic verification of the document without revealing who checked its existence or the contents of the data. Decentralized proof of integrity and existence mitigates manipulation from any third parties or centralized control, providing a reliable tool for analyzing document validity.
Proof of Existence is exceedingly useful for copyrighted material, patents, others in intellectual property and applications law.
At its core, PoE certifies documents by embedding the file’s SHA-256 hash digest into the Bitcoin blockchain. A Bitcoin block every 10 minutes provides a robust and consistent backbone for timestamping the document. Data can be inserted into the Bitcoin blockchain as provably unspendable by utilizing the Bitcoin scripting opcode. Once Bitcoin’s blockchain confirms the transaction generated for the document, it is trustlessly and immutably stored on the blockchain.
Integrating with PoE requires incorporating a simple API or using Poex.io’s intuitive file explorer that functions similarly to a standard block explorer. Cyber Security services expert Robert Graham elucidates an example of the advantage of the PoE model well:
“…let’s say that you have a great idea for a patent, but it’s not quite ready. Well, write it up into a file, then add the file’s signature to the blockchain. Years from now, if somebody beats you to the patent filing, you can prove that you had the idea ahead of time.”
DragonChain implements PoE as a checkpointing mechanism for operations, transactions, block verification, arbitrary strings, and risk mitigation. The risk mitigation case is compelling. For instance, a $1 million transaction’s risk of being manipulated by a PoW attacker could be calculated by using the PoE checkpoint as a reference for calculating the total amount of hash power that would be required to alter the transaction. Basically, an organization could calculate the total hash power expanded since a particular PoE checkpoint. A business could then accurately evaluate the risk before moving ahead with transactions of larger sizes.
PoE can also be used to track digital assets between the public and private sides. Assets transferred from a layer two bidirectional payment channel like the Lightning Network — which is private — could be checkpointed and referenced for when they are settled on-chain, providing an accurate timeline of the transfer of a digital asset between the public and private components of the Bitcoin blockchain.
Sara Technologies & PoE
We value PoE’s ability to provide practical metrics and checkpoint validation of integrity and ownership of documents. PoE is a clever use of Bitcoin’s immutable blockchain that represents a step towards decentralizing public notary systems and enabling transparent risk management assessment.
Applications of PoE will continue to evolve and pride ourselves in being at the forefront of innovation in this field. We can integrate various PoE solutions explicitly tailored to your business needs.
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