Someday will come an expose of fraud within legitimate schools. Cheating students and corrupt professors, administrators, IT personnel... Why wouldn't there be with the stakes so high?
While in general I think that blockchain as a technology is overhyped, it really could serve as a means to combat this sort of thing, e.g., http://www.axiomhighered.com/blog/blockchain-affect-college-transcript/
It is definitely overhyped - and I've read of another technology that may well overtake Blockchain in the not-so-distant future - and no, I have no shares to sell. Blockchain or other verification technologies may well serve to reduce forgery - fake diplomas of good schools. What it won't do is stop the profusion of degrees from bad schools - substandard, mills, Axact-type "schools" etc. There is nothing to stop the worst degree mills on earth from getting on Blockchain and advertising it. "Our degrees are Blockchain certified. That means they're genuine. (Yes, it does - genuinely issued by a very bad school - not a forgery.) And it means they're every bit as good as we say they are. (No it dangety well doesn't mean that - not one bit)." For substandard and milled degrees - Blockchain and similar-purpose technology could be the new, "improved" Apostille.
Well, that depends on how that particular blockchain system is put together. It doesn't have to be "anything goes", and you're right about why it shouldn't be. But even what we're discussing already solves half the problem, and there already higher education groups figuring out now how to do this right, I met some of them at Saylor's conference a few months ago.
Yes - it will solve the problem of fake degrees purporting to be from legit institutions. Neither Blockchain nor anything else I can think of will eliminate the really "bad" schools. I'd bet more than half of them operate from nuke-proof bunkers, as it is! Interesting trend - WES is going to issue Blockchain badges to its clients with verified international degrees. I like it! https://news.coinsquare.com/blockchain/world-education-services-blockchain-verify-education-credentials/