Meaning
Cryptographic commitments placed on a widely accessible and immutable ledger ensure that a record cannot be changed. The process of public anchoring involves publishing the hash of a private document to a public blockchain or a distributed log. This creates a verifiable timestamp that proves the document existed in its current form on that date.
The boundary of this technique is the permanence of the public ledger used for the anchor.
Timestamp Proof
Proof of existence is the primary benefit of linking a private record to a public one. Through public anchoring, founders can demonstrate the exact moment a patent was conceived or a contract was signed. This prevents allegations of backdating records during a legal dispute.
Irreversibility Logic
Fixed records on a public chain provide a level of security that internal databases cannot match. Once public anchoring is complete, the record is considered irreversible because the cost of altering the public ledger is prohibitive. This creates a permanent reference point for the company history.
If an internal server is compromised or data is lost, the public anchor remains as an immutable proof of the original state. This mechanism allows a company to maintain private files while still benefiting from the security of a public network. It provides a way to verify the integrity of the record without revealing its contents.
Access Cost
Dependency on external networks introduces a small recurring fee for every anchor. The frequency of public anchoring is often limited by the transaction costs of the chosen ledger.