How E-Signatures Can Become Ultimate Authentication Method in Web3
Learn how biometric features emerge as a solution to e-signature technology’s security problem.
How E-Signatures Can Become Ultimate Authentication Method in Web3
We are in the midst of an e-signature boom, but many platforms so far have missed the mark when it comes to providing robust security and legal features. John Gruetzner, COO of Syngrafii, says with the emergence of new technology that incorporates the execution of original biometric ink signatures however, this problem may now be a thing of the past.
Many of us are guilty of accepting the terms and conditions of contracts without first reading them. In fact, recent research by Deloitte conducted in the UK showed that in 2020 only 7% of people surveyed stated they would not accept terms and conditions prior to reading them thoroughly. Eighty-one percent of the participants said they sometimes, almost always, or always accepted terms and conditions without reading through them.
For businesses, improving their terms and conditions agreement page is essential. Providing consumers with transparent, plain language terms and conditions can help build trust in a brand, prevent negative user reviews and feedback, and protect businesses from legal action.
For example, in 2012, Instagram faced a barrage of criticism when it changed its terms and conditions. What drew such a negative public response was the social network’s proposals suggesting that posted pictures could be sold to advertisers. Eventually, the social media giant apologized for the confusing language and reverted to its original terms.
Fortunately, solutions to make documents easier to read and sign have been popping up in the market. For example, a legal-tech firm in Austria has developed a tool that uses narrow AI, legal network analysis, and semantic methods when scanning and researching PDF files for references. Once done, it connects cited sources within a document and links it up to multiple databases across Europe.
The Right Balance Between Anonymity and Compliance
This leads us to another matter—with the advancement of Web3, people can easily create digital identities that allow them to take control over personal identification information and define how to represent themselves online.
As a result of digitization, the metaverse is a blockchain-based decentralized platform where digital identities and digital assets coexist. Today, mainstream social media platforms and service providers require that your online identity is linked to your legal name—some even ask you to upload a document such as a passport or a driver’s license, to prove it. However, when it comes to the metaverse, more and more individuals are seeking to maintain a high level of anonymity while still having access to everything it can offer.
So how does one ensure that the people you have been negotiating a deal with in the metaverse are who they say they are? There is an increasing need for clear directives in legislation moving forward. But, more importantly, a decision in the industry by the developers of remote signing platforms, providers of agreements, and consumers to reject proxy signatures that are stored, cut and pasted, or generated as a typed signature with or without a fake cursive.
Certain jurisdictions are already addressing this issue. In Canada, the Ontario Ministry of the Attorney General, for example, recently issued a Notice to the Public and Legal Profession regarding electronic signatures. The notice held few surprises other than stipulating that “a ‘signature’ that is simply a typed name, with or without a font change, will not be accepted, subject to judicial direction.”
Many e-Signature platforms solely provide this method of remote signing, leaving both consumers and firms open to a repudiation of the “signed” agreement. The current password-centric system dominating Web2 is not even in the ballpark of providing a secure and foolproof method of authentication. The industry is still in pursuit of alternatives. But even if we ignore the reality that passwords can be compromised, personnel data hacked, ID documents faked, and 2FA devices stolen, the ultimate problem of proving identity lies in a different dimension.
See More: How to Use Biometrics to Ensure Security: An Interview with Ned Hayes of SureID
Validating the Individual, Not the Signature
The next big thing for the e-Signature industry may be focusing not on the verifying process of the document being signed but that a digital avatar of the person you are dealing with in the metaverse is genuine.
To validate off-chain data related to a digital identity, the parties can fall back on oracles responsible for data appraisal. Once requested, they would assess the legality and authenticity of the data and use their private keys to sign the data.
Here is where digital signature technology may step in. While traditional user identification systems use one or several of these factors separately, e-Signature tech enables combining them in a seamless yet efficient process. And with businesses further integrating digital products, verifying that the digital avatar of the person you are dealing with is genuine will not be an issue.
Private keys consist of data that can be copied, compromised, or stolen, just like any other credentials. A digital signature may add a dynamic component to the authentication procedure and either replace private keys entirely or add an actual signature component into a multi-signature protocol.
With the advancement of virtual reality and augmented reality (AR), as well as various motion caption technologies, there is the potential to turn the very process of signing into an authentication procedure, thus removing the need for remote electronic witnessing.
In fact, Syngrafii’s linked Sign™ with Video Signing Room™ (VSR) technology addresses this issue already. Because every e-Signature executed via the platform can only be used once, and it retains the unique biometric identifiers — like speed, cadence and pressure — that make traditional signatures legally binding affirmations of identity.
Simply put, VSR replicates the biometric protection of a traditional signature. It takes us one step closer to a passwordless future where personal privacy and safety are as important in real life as in virtual reality.
When Physical Reality Is Not the Endpoint
The metaverse, with its creator’s economy, has the potential to shift from entertainment only to other industries securing high importance, especially when it comes to generating added value.
To achieve that, however, policymakers, regulators, and developers will have to join forces to create a decentralized mechanism that would allow users to confirm their identities and remain in control of their personal data and legal consent. This would require a secure and practical solution that makes identity verification and logging into the metaverse seamless and smooth.
The idea of the metaverse is obviously too young to make predictions of how it is going to be regulated. Chances are it will bring new authentication challenges forcing the entire identity confirmation industry to face new challenges and evolve in the most unexpected way.
Do you think biometric features are the solution to e-signature technology’s security problem? Why? Share your thoughts with us on Facebook, Twitter, and LinkedIn.
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