Today an electronic document is much more than traditional proof of identity.

A modern eID is a complex, sophisticated and reasonably expensive product that eventually can help governments to increase security both at the state and international levels, as well as propel economic and social development of their countries.

What are the capabilities of a modern electronic document today?

• • Unmistakable on-site verification of identity documents, even with the help of a mobile phone.

• • Fast and accurate verification of the document holder’s rights to legally cross the border.

• • A tool for reliable remote user authentication on eGoverment, e-commerce and bank portals.

• • A tool for instant access to services in remote regions (e.g. education, social services, medicine, grants and subsidies).

• • A tool to record the history of movements and actions of the document holder (the subject of a unified tracking system).

• • A tool to protect personal data. Carefully selected, reliable technologies for document production reduce the risk of identity and personal data theft.

• • A universal tool that combines the functionalities of identification and payments (multi-functional ID cards).

One of directions of Goznak’s activity is developing Track&Trace systems for security printed products presented using the example of excise stamps. Security features including paper with security thread or holographic foil with the four-digit verification code applied with the help of demetalization method, are used in the solution developed. Besides, the excise stamp is personalized with a 2D barcode containing a unique identification number. Verification is carried out with the help of an application installed in a mobile phone. The application reads the barcode and displays a corresponding verification code; the user can compare it to the verification code on the thread or foil. The contents of the report include a description of the machine vision module applied for forming a database as well as an interaction algorithm of the Track&Trace system elements. The report describes rules of forming the verification code, peculiarities of the image reading optical system configuration and major abilities of the administration module interacting with the central database in sufficient detail.

New technologies pose a challenge to the classic instruments of currency circulation and the very essence of banknotes and other security documents as identifiers of ownership. These technologies come from the digital world and invade application areas of banknotes with such ease that only misunderstanding of the novelty by the general public and no legal control often become the only obstacle. Moreover, the changes also affect all kinds of numbered forms, including those with watermarks – “watermarks on digits” appear instead of them.

In order to keep one’s positions in the classic market of securities and security documents, one should re-orient to using new technologies, so that he could master them earlier than still immature startups that can turn into strong competitors to the classical “printing machines” any minute.

The new “watermarks on digits” technologies meet the customers’ demand – economic efficiency, security and usability – better. In fact, we are becoming witnesses to the appearance of “digital cash”.

Moreover, the “digital cash” is authenticated easily and without human input; that cuts the costs and makes its counterfeiting impossible. At the same time, the new “watermarks on digits” technology enables the commercial structures to support the circulation of “digital cash” and receive profit from their cost-efficient flow.

Aronicle Company has developed a technology of “digital cash” circulation also applicable for digital accounting of contracts, registered letters with return receipts, bills, shares, mortgage certificates, double warehousing receipts, students’ diplomas, passports, birth certificates and other legally significant documents. That served an ideal trigger in the advanced technologies of digital accounting and interactions not only for the state, but for business and even ordinary citizens too.

The “watermarks on digits” technology allows to protect the users’ important data more reliably than a classic paper form with watermarks, decrease the costs for their storing, transportation and accounting.

1. The advantages of blockchain, or “what can be done basing on blockchain and cannot be done in any other way”.

a. What is trust and decentralization?
b. Honesty of the company producing security features is provided with mathematics. The customers can be 100% sure that the security system producers will not make an extra couple of hundred legal security marks (objects).
c. Incontrovertibility of the proof of authenticity (a consequence of trust) – authentication provides a 100% reliable result in case of both success and failure.
d. Authentication simplicity – no equipment is required, just a telephone or a computer is enough.
e. Simplicity and cheapness of creating digital authentication tokens. The price may be decreased considerably using hashing, for example, Merkle tree.

2. Existing security technologies basing on blockchain

a. Security based on an opportunity of creating a unique digital token controlled by the private key owner only and easily checked at the same time.
b. An opportunity of irrefutable event fixation in the course of time. Impossibility of altering documents ex post facto.
c. An opportunity of transfer of possession of the token from one owner to another. The previous owner loses the access reliably!

3. Possible applications and usage examples

a. emcdpo.info – anti-counterfeiting product security based on blockchain
b. emcdpa – electronic notarization. Site letsnotar
c. emctts