Japanese firms digitize documents with the use of blockchain

• Seven firms in Japan plan to digitize their files using a blockchain management system.
• The involved firms are looking to initiate the new programme by the close of the present fiscal year.

Japanese news agency, The Nikkei reported today on 26^th October that seven of its country’s firms are planning to venture into a new trade data management system. The programme uses blockchain technology to digitize files and hinder others from accessing stored data.

The platform is built to administer receipts for exporting and importing businesses and administer letters of credit released by banks. The system will also sort out other files administered by insurance and logistics companies. The involved firms are looking to introduce the new platform by the close of the present fiscal year. The National Archives and Records Administrator (NARA), however, states regarding blockchain that it is used to keep information about payments, not storage of data.

Why use blockchain to digitize?

Digital files can become corrupt without a hitch. Although numerous facilities offer safe document management, they are costly and usually need a third party. Blockchain, on the other hand, implants verification into the file itself to prevent it from being altered.

Many businesses are employing blockchain technology to digitize their files and protect data. Included are the healthcare sector and government agencies. Over 40 leading financial companies are trying distributed ledger technology.

Blockchain protects online files with its capacity to produce trustworthy files and provide evidence of intellectual property. It functions in the same manner as Dropbox and Microsoft OneDrive, but it appends a blanket code called block to the procedure. A block is a pattern of distinctive letters and numbers preserved by an encryption known as public key. This encryption allows owners to manage their details without disclosing confidential information.

In 2018, HM Land Registry indicated that blockchain could enhance land registration and help retired people manage money. As a business prevails, its paper documents multiply, which can be a challenge to organise. This is where digitizing paperwork proves beneficial.