Meaning
Audit processes allow a recipient to confirm the authenticity and validity of a digital record without contacting the original issuer. The process of unhosted verification relies on cryptographic signatures that can be checked against a public key. This allows founders to prove the validity of a contract or an equity grant even if the issuing platform is offline.
The property holds as long as the verifier has access to the public key and the signed data.
Verification Autonomy
Independence from a central authority is the primary goal of this procedure. Using unhosted verification, an auditor can confirm a record at any time without seeking permission from the company. This reduces the administrative burden on the founders during due diligence.
Computational Integrity
Mathematical checks performed locally provide a high level of assurance. The mechanism of unhosted verification involves running a signature check on a user’s own machine. This prevents the issuer from revoking a record or changing its contents after it has been delivered.
It ensures that the proof remains in the hands of the person who needs it. This decentralization of proof is necessary for long-term records that must survive the life of the company. The cost of this independence is the need for standardized data formats that all verification software can read.
Persistence Factor
Reliability of the proof over decades depends on the storage of the public keys. The persistence factor of the record is maintained when the verification material is stored alongside the document.