USE CASE N°03
Despite the obvious drawbacks of the paper-based documentation including vulnerability to forgery and loss, they are still extensively used in international trade.
In international trade, the document is endowed with the functions of certifying the existence as well as ownership of the inventory. Therefore, the trust in the integrity of the document is crucial in facilitation of trade between two unrelated parties.
Superiority of the robust and reliable digital solutions as an alternative to substitute paper-based documentation is undisputed. However some legal regimes are resistant to change and some cultures still value physical documentation, certificates and stamps above database entries.
RIDDLE&CODE offers a hybrid solution which combines the preference towards paper-based documents and the step towards digital solutions with superior reliability offered by blockchain.
RIDDLE&CODE technology bridges the physical/digital divide and strikes a balance between the prevalence of paper-documentation and the advantages that the blockchain technology has to offer. This is done by embedding blockchain-connected encrypted microcomputer - a tag - to the physical documents.
Three technologies form such a microcomputer:
- A microcontroller – that can run blockchain algorithms
- A crypto-accelerator (WiseKey – VAULT IC)
- Active NFC transponder
Advances in miniaturization allow such tags to be embedded into the paper. The tag certifies the validity of the document. Any attempt to tamper with the tag results in its antenna breaking off and self-destruction of the tag upon re-initiation. The document then loses its validation and will need to be re-issued by the proper authorities. The data related to this document remains stored on the blockchain.
The tag remains inactive when document is being transported/stored, but is activated using energy harvesting by any NFC device. The activation of the tag requires an NFC device and an app for the decryption of the content.
For every tag embedded into the paper, there is a physical token that represents the ownership of the paper. This token is carried by the owner. Each document is only valid if the paper’s provenance, authenticity and legitimate ownership can be validated through the blockchain. This makes the physical paper unique and immune to falsification and connected at the same time with all the possibilities that a blockchain has to offer. The end result is an international tradeable token of value, that can be used to represent anything from metals to commodities and which secures the provenance and ownership of the document.
- Guarantees security and trust in international trade
- Enhances physical paper with blockchain technology
- Possible creation of new financial models such as tokenized inventory funding