Alior Bank in Poland Uses Ethereum’s Blockchain To Authenticate Documents
- Polish Alior bank becomes the first financial institution to use the Ethereum blockchain
- The intention is to confirm the authenticity of documents issued by the bank
- The Polish-based bank Alior Bank is currently using the Ethereum blockchain in order to authenticate clients’ documents. This is according to a report released by Forbes on June 17. The report explains that when a client at the bank receives a document, it is possible to check whether it is authentic with a link to the Ethereum (ETH) blockchain.
Polish Banks Uses Ethereum Blockchain
With this new system, users can easily verify that the documents received were in fact issued and that the wording is the same used as in the paper document.
Piotr Adamczyk, the blockchain technology lead at Alior, commented:
“We know exactly in which block of Ethereum the document with a given hash is published. If we know the block number, we also know the timestamp.”
He has also mentioned that the document was published some time ago and that it has not been changed during that time. As he explained, if the blockchain is identical to the hash calculated from the document it is possible to prove it hasn’t been replaced on their servers.
Alior developed the blockchain solution due to changing regulations in the country. The Office of Competition and Consumer Protection ruled in 2017 that websites are not a durable medium to issue customer documents. The main issue is related to the fact that these websites are not durable.
Apparently, this is the first bank that is using a public rather than a private blockchain for customer service. The Blockchain strategy lead at the bank said that they want people to verify that they have done everything right and that they don’t conceal anything.
There are different banks around the world that are also using blockchain technology, including JP Morgan Chase or Santander Group. In South Korea, for example, financial institutions are increasingly using distributed ledger technology (DLT) in order to improve their services.