DocuSign, the San Francisco-based company that specializes in electronic signature technology, has announced the integration of the Ethereum blockchain into its signature and transaction service.
The newly integrated technology will enable clients to verify signatures via cryptographic hashing protocol implemented against the original signed document, agreement, or contract. The system works by encrypting documents and assigning them to a hash. Then, you can make a comparison to check if it has been tampered with.
How Docusign Uses Blockchain
DocuSign, which has dominated the e-signature space for years, has touted the move as highly beneficial to customers looking to have agreements exist in a neutral environment outside of the control of any party. Hashing signed documents against the blockchain also offers additional security because the hash acts like a fingerprint. The actual content of the document is kept private.
What’s more, the signing event cannot be undone because of hashing’s one-way attributes, and an event cannot be recreated. The company says the move will help bring it closer to achieving its main objective, which is to have a majority of paper agreements turned into smart contracts.
DocuSign has continued to grow through both expansion and extensive acquisition moves. It’s most recent acquisition is SpringCM, a cloud-document generation, and management company that is based in Chicago. The acquisition was worth an estimated $220 million. That said, DocuSign faces tremendous competition from its rivals – Salesforce, Oracle, and Apttus.
The Ethereum blockchain technology is among the most popular in the world in terms of all-around innovative use. This is because it’s well suited to run programming code for decentralized applications.
Moreover, you can tweak these applications to support a variety of uses other than digital currency. The technology also allows for the addition of steps following certain rules of ownership and viewership of transaction history. Replace transaction with signed document, and you’ve got yourself a solid system for contracts.
By relying on the Ethereum network, DocuSign joins a growing list of companies that have embraced blockchain to simplify technological tasks. They’ve also joined the Enterprise Ethereum Alliance alongside a reputable list of companies that includes Deloitte, Intel, and JP Morgan Chase among over a hundred others.
Feature image courtesy Mergr