Proof of everything: Can blockchain be the ultimate authenticator?

• Author:
• Author name

  Quantumrun Foresight
• December 9, 2022

Insight summary

Proof of everything implies the presence of widespread surveillance and distinctive social norms for establishing trust and authentication online. Over the coming decades, proofs may become a more prevalent form of authentication as people spend more of their lives in a digital environment. The long-term implications of this development could include blockchain-stored resumes and advanced biometric security technologies.

Proof of everything context

In the context of blockchain technology, a blockchain ledger “block” digitally stores and manages data. If one peer trades with another, the block will preserve the transaction’s time, date, and amount. The block also stores information about which users were involved in the transaction. For example, if two peers trade, their information will be recorded in that block.

The amount of data revealed about each user depends on the privacy measures in that particular blockchain network. Most often, digital signatures are used instead of actual names. The block stores information to ensure that each transaction is unique from the others. The network can identify the transaction through cryptographic algorithms producing a “hash” value.

The block is informed of the transaction when it occurs, and all transactions are verified for security purposes, similar to an e-commerce platform and bank verifications during an online purchase. However, there is no centralized entity that oversees it all. Instead, a consensus method is used among network members to verify transactions.

The verification process is complete once the transaction is stored in the block. The last step generates a unique hash value for the block. This hash value is then used to verify and check against other blocks on the chain to ensure its legitimacy. 

The same process that validates the authenticity of the transaction through a consensus mechanism can translate to different proofs that the transaction is valid or the data is legitimate. These proofs can be just about anything: proof of access, attendance, degree, and ownership, to name a few.

Disruptive impact

The use of the proofs are nearly limitless. Proofs create a secure, transparent, and tamper-proof record of transactions; blockchain could upend traditional systems for verifying everything from ownership and identity to payments and security. For instance, enterprises can integrate payment solutions company Hydrogen’s platform into third-party tools and financial systems to add blockchain components.

Hydrogen can assist companies with digital identification, crypto payment options, and tokenization. And since 2018, MedicalChain, a blockchain-based platform, incorporates proofs to protect patients’ identities and data by ensuring that the physician or healthcare worker has the right to access them. MedicalChain also has a MyClinic site that permits patients to pay for virtual doctor appointments using MedTokens (cryptocurrency). 

In contrast, in 2021, several cryptocurrencies and non-fungible token (NFT) communities started providing NFT badges referred to as PoAPs (Proof of Attendance Protocol) to connect with their members and provide them with a variety of perks. These digital assets were given to attendees of an event as proof of their participation. The POAPs also act as collectibles because each one has a unique design. 

Implications of proof of everything

Wider implications of proof of everything may include: 

• Biometric technology allowing individuals to use elements of their bodies as verification for transactions and access to files and physical locations.
• A continued reduction in intermediary services as proof of everything technologies commoditize and automate most verification processes.
• Conditional cash transfer (CCT) programs (CCTs aim to reduce poverty by making welfare programs dependent upon the recipients’ actions) using blockchain to establish recipient identities and to verify the nature of a recipient’s purchases. However, this may receive backlash when used for government aid and welfare.
• Resumes being hosted in blockchain networks to certify the information on them, such as credentials and skillsets.
• The Metaverse heavily utilizing PoAP badges to promote exclusive events, such as private concerts and art auctions.
• Increased hacking attempts from cybercriminals to sell proofs.

Questions to consider

• How might the use of proofs be considered invasive? 
• What are the other benefits of transferring authentication methods to blockchain?