Blockchain technology: Can it be the solution to enhance data security?
Today, we live in a digital world, meaning most of the information is stored online. Even though technology has brought a lot of advantages, it has also added a critical downside, as the data stored online can come into the hands of cybercriminals. There weren’t a few cases when the centralized platform had become a victim of data breaches, revealing customers’ personal information and affecting the reputation of companies worldwide. However, there is a technology that could solve all these issues, which is represented by blockchain.
Blockchain is popular as the underlying technology for important cryptocurrencies, including Bitcoin, and it is the one that made the crypto king so different from the traditional alternatives. Even though people have learned the best way to buy Bitcoin, some haven’t heard all of the advantages blockchain technology can bring to a company’s operations. Blockchain can improve security online, which is why it can be the best ally for organizations worldwide. So, let’s figure out how blockchain can improve cybersecurity. But first, let’s explain the term blockchain technology better.
What exactly is blockchain technology?
Blockchain is a distributed digital ledger with excellent attributes that enable open and safe data storage. Blockchain is a decentralized technology, meaning it doesn’t represent a centralized database controlled by an entity or government. However, as intermediaries do not control the platform, there needed to be a process to validate the authenticity of all transactions. This operation differs from one cryptocurrency to another, but let’s take the example of Bitcoin, the largest cryptocurrency by market cap. Bitcoin validates all its transactions with the help of a process called mining, where miners are the ones who add new blocks to the platform. Blockchain is an immutable platform, meaning that data can no longer be removed or modified once stored on the network.
How can blockchain revolutionize cybersecurity?
Improving authentication and data integrity
As we spend most of our time online, it is essential to ensure that data remains safe, as all the cyber threats will affect a company’s reputation and pose significant risks. However, blockchain can help all those companies that want to enhance data security, as it offers solutions that will revolutionize traditional measures. Data integrity implies that data will stay consistent, accurate, and unchanged, which can be maintained with the help of blockchain because of its immutable and decentralized characteristics. This happens because once data is recorded on the blockchain, no one can change the information, thanks to the consensus mechanism of the platform and the cryptographic hash functions.
Authentication is also improved with the help of blockchain, where the process of verifying users’ identities is greatly enhanced. In a blockchain, users receive access with the help of a public and a private key, where the public one is shared with all the network participants, while in the private one, only the user has access to it. Blockchain has taken security to the next level, as authentication is not only based on the password and username system but also has better protection features to guard anyone against unauthorized access and identity theft.
Because of all its positive attributes, blockchain can be used in many industries, including finance, healthcare, government sectors, and supply chain management. It offers reliable authentication processes, unaltered and trustworthy records, and secure data exchanges.
Reducing the risk of unauthorized access and data breaches
One of the worst scenarios a company can go through is becoming the victim of a data breach, which will have significant consequences, such as reputational damage, financial losses, and lower customer trust. Blockchain can reduce all these risks, as it is more decentralized and resistant to hackers. On blockchains, data is distributed across various nodes, and for a cybercriminal to be able to compromise the entire system, it would need to have access to the majority of the network’s nodes, which is improbable.
Centralized databases can also experience unauthorized access, but in blockchain, access is permitted with the help of smart contracts, which enable only authorized entities to access specific resources.
Blockchain improves security in the supply chain
The supply chain is an important industry everywhere around the world, as it is the one that moves goods across borders. However, because most companies use a centralized platform for the supply chain, their operations are vulnerable to many security risks, including tampering, counterfeiting, or offering unauthorized access. All of these can cost a company, as customers want transparency when they buy something. Blockchain can also be the best ally in this matter, as all information is stored on the blockchain, and all users can verify the transactions from there. In this way, customers and organizations will be able to track the integrity and authenticity of all the goods, so they will know that they will not deal with unauthorized modifications or counterfeit products.
Plus, blockchain can also let companies monitor goods in real time with the help of IoT devices that have sensors that can transmit important data, such as humidity, temperature, and location. In this way, organizations will be able to know the conditions of all products and take the needed measures in case something is not working properly.
Wrapping up
Because the world we live in has become more digitized than ever, we have to look for solutions to prevent risks that can occur in the online environment. Blockchain is a technology that can hugely enhance data protection and revolutionize cybersecurity practices, as it has all the good characteristics that will help organizations improve data security, including immutability and cryptographic hashes.