Jack Moran
Fri, 26 Mar 2021 14:00:45 +0000
Issue 44

Security In Blockchain: The Future of Digital Credentials

Blockchain credentials are an increased level of security against falsified and reproduced certificates or badges. Using decentralized blockchain technology, digital credential records are written to an ��always-on, distributed database�� that is cryptographically secured. This ensures the record of achievement is virtually impossible to fake, modify, or remove, but is always available for verification or viewing.

What is a blockchain?

In simplest terms, a blockchain is a type of database that stores transactional information. Similar to the way a spreadsheet can be managed by a group of people from a central location, blockchain records are stored across a wide-spread network of computers, individually known as nodes.

Unlike a spreadsheet, once a transaction has been recorded to a blockchain it cannot be amended or deleted. This prevents spoofed data from being recorded or implemented by simultaneously cross comparing the information across all the other nodes. If the match fails, the node that tried to submit this information is then blocked from the network.

Additionally, the decentralized nature of blockchain technology means records are fully transparent. Anyone can view the transactions that have been recorded to a blockchain using a blockchain explorer or via a personal node. Digital credentials written to the blockchain have their information encrypted, preventing visibility and extraction of data without prior consent from the owner. This ensures that while the recorded transaction is always visible and can be easily verified, there is no risk to recipient information.

How is blockchain technology secure?

Security for blockchain comes from the method of storage used and from which the technology takes its name. Transactional information is collected in groups, known as blocks. Once a block has reached the limit of information it can hold, it is ��chained�� to the block that precedes it. New transactional information is then written to an empty block and once full, this block is ��chained�� to the most recent block.

The ��chain�� in blockchain security is the unique ��fingerprint ID�� the block is given, known as a hash. The hash ID is a string of characters generated using the contents of the block and the hash ID of the preceding block. Any attempted removal or modification of a block breaks the unique ��fingerprint relationship�� between the block hash IDs and would be disallowed.

Think of it like the queue in a supermarket where each shopper is given a nickname that is based on the contents of their basket and the name of the shopper in front of them. Someone with the same name but different basket contents could try to take your place in the queue but the ��nickname relationship�� would be broken and result in them being ejected.

How does blockchain technology benefit higher education?

There are many aspects of higher education that blockchain technology can benefit, including:

Student records

Finance management

Certificates and rewards

Data storage

Learning models

Research publication

But the two major reasons for blockchain adoption in higher education spaces are security and verification.

Security

Credential fraud is a huge problem and can go undetected without proper checks. Analysis carried out by ADP across 2.6 Million background checks found that:

23% of candidates had falsified a credential or license

43% of resumes contained incorrect or embellished education history

Not only was the rate of fraud high but these were self-submitted background checks – the candidates knew they would be audited but still attempted to falsify their credentials.

Although it may seem harmless for someone to fib their way into a low risk job role, it causes a number of issues for businesses. Funding is required for unexpected training or covering employee turnover, training takes longer, and internal processes are delayed. For high responsibility job roles like a medical surgeon, the potential for harm caused by someone falsifying their credentials is considerably higher.

This type of fraud can damage the relationship between education providers and hiring organizations, as well as harm the reputation of the credential issuer. For example, if a new hire arrives claiming they have passed McGraw Hills�� classes in Excel but can��t use a pivot table – this reflects poorly on the quality of education provided.

Blockchain recorded digital credentials solve the issue of faked credentials by cryptographically sealing records as they are created. This means that when a student earns a badge or certificate, the record is written to the blockchain where it cannot be amended, removed, or spoofed.

Verification

Currently, employers or recruiters need to contact the issuer of a credential to check if the award is correct and up to date. Verification is handled by the records office of the applicant’s college or university but occasionally this is managed by a third party company. Not only is the process time-consuming but if verification goes through a third-party this usually carries a fee. Further issues occur if the issuer closes or records are lost or inaccessible, making the credential near impossible to truly verify.

Digital credentials that are written to the blockchain are verifiable within a few clicks online and verification is accessible around the clock. Even if recipients have chosen to print a copy of their credential, the online version will always show up-to-date and correct details. This provides an extra layer of security for printed credentials that may have been altered using design software. This also solves the problem of credentials becoming unverifiable when a provider shuts down. One example is MacMurray College which closed in 2020 and provided little contact or direction for verifying past credentials. Had the degrees been issued as digital credentials and recorded to the blockchain, they would still be active, retrievable, and verifiable.

In Summary

Learning models have gone unchanged for hundreds of years, but the introduction of blockchain technology will improve the way education is accessed, represented, and verified in the near future. Educational institutions that fail to embrace blockchain technology will restrict the opportunities students have when seeking employment and risk losing a competitive advantage.

Blockchain technology is already available and in use across a wide variety of industries. Any organization or institution providing access to education should take advantage of the rapidly developing technology to ensure the best outcomes for their students. By utilizing the available technology now, the pain points of traditional technologies can be solved almost immediately and the process of scalability greatly simplified.