What is Timestamp in Blockchain? Blockchain-Based Timestamping Explained

Invented by the pioneer aliased Satoshi Nakamoto in 2008, Blockchain was created as an open-source software platform, which facilitated verifiable and secure transactions without any necessity for a central authority like banks. Timestamp in Blockchain is one of the things that help make it so safe. 

According to the Transparency Market Research, the worldwide revenue for Blockchain technology is estimated at GBP16 billion by 2024. Each network block is like a public financial ledger or register, which, when interlinked, forms a Blockchain.   

Blockchain-based data is recorded on a Blockchain via timestamping to show that it was present at a certain time and date. Since timestamps have unlimited uses in any business environment, read this blog to learn about them in detail.

Table of Contents 

1) Understanding a Timestamp in Blockchain  

2) Benefits of a Timestamp in Blockchain 

3) Applications of Blockchain-based Timestamping

   a) Supply Chain

   b) Insurance

   c) Intellectual Property and Copyright

   d) Legal and Law

   e) Facility Management and Inspection 

4) Conclusion

Understanding a Timestamp in Blockchain 

A Timestamp refers to a small piece of data stored in every block in a Blockchain as a unique serial. This data ascertains the moment the block mining has occurred and undergone validation by the Blockchain network. Interestingly, a timestamp dates back to its initial usage in historical times when people explored ways to track and authenticate documents.   

Timestamps can be understood as writing anything on a Blockchain and then being assigned a time signature containing a particular date corresponding to its parent block. This timestamp containing the data happens to be fixed or immutable, proving its authenticity and transparency.   

A primitive example of the first use of timestamping is the postal stamp, the so-called ‘predecessor’ to a timestamp. Back in the 17th century, people attempted to claim possession of important documents, including scientists who attempted to prove possession and ownership over their innovative findings. The scientists would post letters to themselves, for instance, how a scientist and polymath, Robert Hooke, had an anagram published in the late 1600s to prove his discovery of Hooke’s Law.   

The advent of computers allowed people to witness one of the first actual executions of timestamping. Although these techniques were not secure enough because they required the presence of a centralised infrastructure, and incidents of data manipulation began consequentially due to this lack. One means of resolving this concern was through decentralisation, which Blockchain networks bring into the picture regarding their practical applications.  

Now a timestamp, also known as a ‘temporal parameter’, is based on an immediate adjustment utilising the timestamps’ median, which all existing network nodes have returned. Owing to the reason for its decentralised form, the network nodes are to be kept as well-synchronised as possible. It is also to be noted that the block timestamps are not fixed because they are not necessarily in order.   

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Benefits of a Timestamp in a Blockchain

Blockchain-based Timestamping offers a decentralised and secure means of keeping track of the manufacturing process. It is to be noted that a timestamp does not have any legal value of its own, as the only valuable part of it is its time signature. Any data entered into a Blockchain becomes legally valid the instant it has been uploaded in a particular manner.

Additionally, timestamps are very important for maintenance. This means a company can track the work on the Blockchain network if it owns any equipment. The company that produces said equipment can observe if and how the maintenance work was carried out, presenting substantial evidence of the event occurrences.
 

  

Below is a list of reasons why Blockchain-based timestamping is of benefit:

1) Blockchain Timestamping is, in fact, more secure and trustworthy because it is not possible to remove or change after it has been published to the ledger, making it all the more trustworthy and secure as a result.

2) There is little possibility of meddling by any party because of the decentralised nature of Blockchain.

3) A Blockchain network’s transparency characteristic allows the timestamps to be viewed with transparency as needed.

4) The contrast between traditional and Blockchain-based timestamping illustrates the benefit of timestamping in a Blockchain network. For example, if a company uses a centralised server to track its manufacturing process, the probability of data loss, corruption, or manipulation rises. As a result, this leads to mistrust in the timestamp.  

Blockchain networks keep these potential concerns to a down-low by keeping the data encrypted and completely secure right at the source, such that the data cannot be altered or tampered with. This procedure and practice build trust, a crucial aspect of any business workflow, hence why timestamping is worth adopting.

It must also be noted that in case of documentation, the document itself is invisible on the Blockchain. Additionally, hashing is a one-way process where both the signed and unsigned versions of the document will generate different hash values. Once the hash of signed document is entered into the Blockchain, it keeps the document data hidden from those having access to the Blockchain. Although it only allows them to make a note of the hash value for the sake of verifying the document’s authenticity.
 

Applications of Block-based timestamping

Being proven time and again as the world’s most favourable system of timestamping, Blockchain maintains a storage of transaction records in blocks, that are interlinked in order to form a data chain. Additionally, protocols are utilised to maintain a consensus on the Blockchain network, which means that each individual existing on the network is aware about each event which has ever taken place.

Let us know take you through the real-world applications of timestamping in Blockchain:

Supply Chain

The supply chain contains many important events and consumers are showing more interest in the origin of products and the means by which they are made. Supply chains are known to contain high levels of unreliable and inconsistent information. This results in consumers began to get increasingly concerned as to where their purchase transactions were done. Blockchain-based timestamping can be used in the supply chains for improving accuracy, precision, transparency and accountability.

Insurance

One external element which has always had a major impact on the insurance industry is fraud. Fraudulent opportunists and enterprises with a criminal record happen to cost the insurance industry enormous sums of money. The involvement of Blockchain timestamping can aid in eliminating fraudulent activity by increasing the security of data at the point of origin. An unquestionable record of event claims like property damages or car accidents can also be provided.

Intellectual Property and Copyright

One advantage Blockchain timestamps have are to offer a fixed history that has no room for doubt. Especially regarding copyright and IP, having undeniable proof of when you published your work is very critical in the case of any breaches. Two beneficiaries of this application of timestamps, are creators and artists because they are allowed to mark their work and have a retention of leverage or advantage during deal negotiations, licensing agreements and copyrights. This is where the immutability of timestamps comes of immense importance. 

Legal and Law

The legal and law industry depends on protecting valuable and sensitive data. The legal system can resolve multiple concerns using Blockchain network structures. These structures ensure that the information's origin is secured enough to be tamper-free. This advantage is especially useful for notary certificates and court evidence, an absolute security necessity.

Facility Management and Inspection

Inspections are important to ensure that both accountability and safety are provided when getting involved with complex systems. Facility Managers can make good use of Blockchain-based timestamps to generate a fixed record of an inspection that is being executed in the correct manner. This especially ensures a guarantee of accountability for people in times of crisis.

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Conclusion 

Having gained propulsion over the recent years, Blockchain technology has turned into one of the best means to secure data because it is fully transparent, budget-friendly, incorruptible and scalable. The timestamps in Blockchain are fixed or immutable and resistant to alteration or tampering. These characteristics makes them a great choice for data archiving, and also to resolve some important challenges that a variety of industries encounter daily.

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