USE CASE N°03
Paper-based documents are still used for documenting the existence of physical inventory. In most instances the document is also the certificate representing the value of the inventory. This means the owner of the document is the owner of the inventory. Due to the fact that these documents can be forged, trust needs to be established and reestablished before a trade can be made.
Despite the inefficiencies and dangers involved, paper processes are still at large within international trade. Legal regimes that are slow to change and cultures that value physical documentation, certificates and stamps above database entries are the two main reasons for this.
RIDDLE&CODE technology breaks through the physical/digital divide to strike a balance between the demand for paper-documentation and the advantages that blockchain technology has to offer. This is done by means of combining the following three technologies to form a micro computer:
- A microcontroller – that can run blockchain algorithms
- A crypto-accelerator (WiseKey – VAULT IC)
- Active NFC transponder
Due to advances in miniaturization this cryptocomputer can be embedded into the paper to act as a tag. This combination is always active due to energy harvesting. The energy is harvested from ordinary mobile phones via induction when the phone is used as a reader or a writer. If someone tries to peel it off, the antenna breaks and next time it is initiated the chip will destroy itself. The document then loses its validation and needs to be reused by the proper authorities. For every tag embedded into the paper there is a physical token which 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 unforgeable and connected at the same time with all the possibilities that blockchain has to offer. The end result is an international tradable token of value that can be used to represent anything from metals to commodities 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