Data Validation

Data validation is the process of checking that data is accurate, complete, consistent and in the expected format before it is stored, processed or passed to another system. Typical checks include confirming that required fields are filled in, that numbers fall within allowed ranges, that dates are real and that codes match a known list. In payments, systems validate account numbers, IBAN check digits and message formats before money is sent, as in account validation and payment message validation, which reduces failed and misdirected payments. Compliance teams rely on validated customer data for screening and reporting. In blockchains, nodes validate every transaction and block against the protocol's rules, and blockchain oracles must validate outside data, such as prices, before smart contracts use it. Also see Reconciliation.