NFT billing puts an end to phantom billing

view | yuki is the first company in Europe to make invoice processing more secure with blockchain technology. Blockchain technology is incorporated into Yuki’s accounting platform that automatically verifies the authenticity of receipts and invoices. This is the first step in completely secure automation of bill processing and payment and the end of the ghost bill. An important condition for NFT billing to be successful is wide adoption of the protocol by the business community and government.

Everyone agrees that computerized accounting has many advantages. But until now, automation also meant a security and privacy downside. Recognition software works well and quickly in most cases, but not flawlessly. The possibility of ghost invoices going unnoticed increases with a high degree of automation. Organizations that receive many invoices and have largely automated their invoice processing appear to be particularly sensitive to this type of fraud. And so even the most automated and innovative accounting systems do not always escape time-consuming human controls.

open protocol

With Yuki, fully automated accounting is within reach and with the introduction of NFT invoicing there is now a solution to the risks involved as well. Yuki has developed an open protocol, which is free and freely available to anyone who wants to use and apply it.

We would like to explain: NFT billing is an open protocol that uses blockchain technology. This technology ensures that invoice flows are immutable As a sender and receiver, you can view the invoice anytime, anywhere, but the content is impossible to adjust. This means that as a recipient you always have the certainty that both the invoice and the original sender cannot be adjusted in the meantime. In the short term, there will also be the possibility that as a recipient you can also verify who the original sender is. So you know that an invoice on behalf of vendor X actually comes from vendor X. This also eliminates the dependency on a third party.

Data Ownership

In practice, NFT invoicing works as follows: the provider uploads his invoice to the customer through a transaction that is part of an online block, a kind of folder containing encrypted data. Only the sender and the recipient have the unique and indecipherable code that gives access to the billing data of the transaction. Once closed and submitted, a block can never be edited again. When the supplier sends the invoice to the customer’s email address, a link to the block and the key to decrypt the invoice details are automatically sent.

Jeroen van Haasteren, Product Manager at Yuki: ‘The protocol based on blockchain technology offers three important advantages. First: because the invoice is placed on the blockchain, the recipient knows for sure that it has not been adjusted. Second, it will soon be possible for the sender to sign the invoice so that the recipient knows for sure who the sender is. It cannot be used for fraud. And the third advantage: because only the sender and recipient have the key that gives access to the invoice, this counts as ownership of the data. If you delete or forget the key, the data is also legally deleted or forgotten. So you decide what happens to your data.

Less control needed afterwards

Since it still works, the creator of a phantom bill can relatively easily figure out the address on your bill and send you a fake bill that is indistinguishable from the real thing. In many cases, the system will stop such an invoice, but unfortunately not always. The same scammer cannot secretly adjust the invoice and sign it without the signing key thanks to the blockchain. This makes automation much more secure. After approval once, the system knows that it can trust subsequent invoices with that signature. That is, if it has not been modified according to the blockchain. The system can then securely validate the invoice automatically and then checks are required much less frequently.

Decentralized storage

The encryption of the invoice is not a specific property of the blockchain, but rather a security extra that is added to it. Blockchain and encryption together make a strong duo. Therefore, the security key cannot be decrypted or stolen through hacking. Also, a block is stored decentrally on any cloud server that participates in the blockchain. The owner of the server where a block is stored does not have the encryption key. The person also does not know who owns it and who else has access. Blockchain combined with encryption is virtually airtight and super secure. These properties make blockchain very unattractive to criminals in practice.

Therefore, it is impossible for a criminal to modify a block. One option would be to steal a bill, but first you need to find a transaction that contains a bill. A mega bet that costs seas of time. If it still works, the criminal must also decrypt the transaction. If that is successful, which is almost a 0% chance, then the criminal has spent a great deal of time and energy stealing an invoice that they are not sure if there is a dime to be made from it. This is anything but lucrative for a cyber criminal.

the new standard

NFT billing is an open protocol with open documentation. Anyone who wants can use it. The potential is huge and there is good hope that the validation protocol will become a new standard. For example, the protocol can solve the problem of physical receipts. Now they usually cause errors when scanning and recognizing. How good would it be if each receipt was automatically uploaded to the blockchain immediately after payment and became the property of the buyer? A user can then digitally download the receipt with a QR code and upload it to the accounting system, for example.

The condition for NFT billing to be successful is for the protocol to be widely adopted by the business community and government. That this happens depends, among other things, on political and strategic factors. If you look at it purely substantively, there’s really no reason why NFT billing shouldn’t take the world by storm. There is worldwide interest in addressing online security issues. This protocol will make the online world a little more secure.

Source: https://www.yuki.nl/nl/nft-invoicing-maken-een-einde-aan-de-spookfactuur?


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