As the volume of data being generated every day increases, the need for managing and protecting them rises. We cannot deny the importance of data as the right information extracted from the data is what businesses help in the decision-making process. Security is the main concern for all organizations especially financial service firms. Research by Deloitte (Source)says 75% of CEOs and board members consider cybersecurity and technology acquisitions among their top priorities. Blockchain is one of the most trending technologies that protects businesses from an increasing rate of cyber-attacks. Today, almost every Blockchain Development Company is providing a wide range of robust blockchain-enabled solutions to ensure data integrity.
This post aims to give a quick overview of how blockchain technology can enhance cybersecurity across industries and ensure that no data is damaged, stolen or lost.
What Is Blockchain And How It Works?
Though Blockchain was initially developed to store or send the first cryptocurrency called Bitcoin, this technology has gained attention across several industries enabling businesses to increase cybersecurity. Known as the distributed network with millions of users worldwide, Blockchain enables every user to add data to the network while securing all data through cryptocurrency. Every data added can be verified by all the members of the network using three keys system (private, public, and the receiver’s key). This helps members to check the data’s veracity and confirm the authenticity of the member who is making the change.
In Blockchain, a piece of data after verification forms the block that is added to the chain by the users using their respective keys and the computing system. Once the block is added, the data inside it stays forever, which means data cannot be removed/modified. To update any data in the block, the data owner needs to add a new block on top of the previous block. Even a slight change that makes the new block different from the old one will impact the whole network. Any member in the blockchain network can always look at previous versions of the block to identify any alterations thereby, preventing data loss/damage or corruption.
Top Use Cases of Blockchain That Boosts Cybersecurity
Many organizations are using blockchain-based solutions to protect their data from hackers and prevent fraud cases. Here are some of the most promising use cases that define how Blockchain technology can boosts cybersecurity-
· Use Decentralized Storage
One of the best things about Blockchain technology is that it has been designed without the need for central authority or storage location. Every member is responsible for verifying the data stored/shared ensuring that no false data is added, or no change is done to the existing ones. With the decentralized nature of storage used in blockchain technology, hackers no longer have a single-entry point, nor they can access the entire data repositories, even if they get in.
· Prevent Data Theft & Fraud
Even if the hacker tries to destroy your blockchain, he/she needs to destroy data stored in every single computer in the global network. Destroying data in millions of computers is nearly impossible and unless all the blocks are destroyed, all the other undamaged nodes in the network will continue to run keeping a record of all verified data. Bigger your blockchain network is, lower is the risk of getting attacked by hackers.
· No More DDoS Attacks
We know that DNS is centralized, which means hackers can create havoc by breaking the connection between the IP address and website name. Using blockchain will fully decentralize DNS, which will distribute the content to multiple nodes, making it difficult for hackers to attack. The idea of making the entire worldwide web decentralized is to remove all third parties from managing web servers, databases, and IT systems. Only the authorized people will be able to change the domain names, which will prevent the chance of DDoS attacks.
· Promote IoT Security
In IoT network, we deal with multiple devices such as routers, switches, security cameras, doorbells, etc. that exchanges data to one another. Blockchain can make IoT devices smart by enabling them to make security decisions without the need for a central authority. This will not only protect all the data exchanges between IoT devices but also enable real-time secure data transmissions & timely communication between devices.
Though we are aware that innovative uses for blockchain technology can help in boosting cybersecurity, it is impossible to prevent cybercrime completely. Technology alone can never be the solution for combatting cybercrime on its own, which is why human expertise is needed to detect & analyze suspicious activities. To overcome the cybercrime challenges in your organization, ensure that you are making the use of the right technology along with experts that use effective tools. This is how Blockchain can help in improving the security of your business data. Go for Cyber Security Audit Services offered by leading software development companies to identify real-time risks and prevent security breaches in your organization.