The Future of Blockchain in Data Security
From my previous blog post, I talked about the history of Blockchain and how it works. In this blog post, we will dig deeper into how Blockchain can be used in data security. Here is a quick recap of what a block chain is:
https://www.youtube.com/watch?v=6WG7D47tGb0
As we all know, digital technology has become an essential part of our lives, from social media to online shopping to online banking and so on. It plays a crucial role in our daily activities. The more we rely on these new technologies, the more our data becomes vulnerable to cyber-perpetrator.
Data Security
First of all, what is Data Security exactly? To answer this question, Data Security is a practice of protecting your digital information from unauthorized access, corruption, or theft throughout its lifecycle. So how are data being protected? Data can be secured using various hardware, software technologies. Data Security is an essential part of running a business successfully as it guarantees people that the data is being collected, processed, and transferred securely. Data security should be thorough for everyone, whether you are an individual or a business, because everyone is a target.
The Problem: The Future of Cyber-attacks and Malwares
Cyber-attacks like ransomware and other forms of data breaches have become an everyday challenge for businesses, especially those who operate on digital network platforms. A successful cyber-attack could cause any companies their downfall.
Cybersecurity firms and ventures have predicted that businesses will fall victim to ransomware attacks every 11 seconds. It is estimated that the cost of ransomware to businesses will top $20 Billion in 2021, and the global damages related to cybercrime will reach $6 Trillion. [1] The introduction of the 5G network that offers ten times faster download speeds will inevitably create more cyber-perpetrators opportunities. The shorter the network speed, the bigger chance of more devices being hacked. According to Gartner, there will be an increase in the number of things connected to the internet, from 14 billion to 25 billion. These new technologies have patchy security features that attract attackers. [2]
The solution: The Future of Blockchain as Data Security
Blockchain has evolved to become one of the most certain forms of transacting in the digital world. IT is emerging as a very viable technology to increase cybersecurity. Blockchain has been credited for its information integrity assurance, and if used correctly, many sectors can benefit from it to improve their cybersecurity. Below are some test cases of future beneficial use of Blockchain that can be implemented in the real world to strengthen cybersecurity.
- IoT (Internet of Things) Security — Devices such as the smart thermostat and even security cameras are vulnerable to hackers. They often gain access to systems by exploiting weaknesses in edge devices. These new IoT devices do not ensure in-depth security. So how can Blockchain be used? According to Joseph Pindar, co-founder of Trusted IoT Alliance, Blockchain can give those IoT devices enough “smart” to make security decisions without relying on a central authority. Incorporating Blockchain in these new technology devices can be used to protect the system. With its decentralized storage solution, hackers will not have a single point of entry, and even if the attackers get in, they cannot access these data because it’s everywhere.
- DNS Security — DNS or Domain Name System is very centralized, making it a perfect target to attackers. One of the things these attackers can do is to create a DDoS attack on your network. The DDoS attack is a distributed denial-of-service attack that slows down or can completely shut down your system, which happens when users of a target source, such as a server, website, or any network resource, are denied access or service to the target source. Applying a blockchain-based system can strengthen DNS because guess what? It is decentralized. No single point of entry to exploit. Domain information can be stored immutably in a distributed ledger.
- Private messaging — With more and more people joining social media, the number of social media platforms increases. More social media applications being developed and being launched. The amount of metadata being gathered during these interactions are enormous. Most of these new social media platforms lack data security with a weak password. Facebook and Twitter, for example, in the recent past, numerous attacks have been executed in these two platforms resulted in a lot of data breaches. Millions of accounts have been breached, and user information landed in the wrong hands. Using Blockchain, and if implemented correctly in these messaging systems, can prevent future attacks. Blockchain can create a standard security protocol securing user data as an option to end-to-end encryption.
- Decentralizing storage — Most businesses’ most significant concerns are data security as most of them use centralized storage. It’s like storing all your assets in one room. Hackers can easily find a backdoor to exploit to enter this room and take everything. Using Blockchain, sensitive data and information in your business may be protected by ensuring a decentralized form of data storage.
In addition to these four test cases, there more ways blockchain can be implemented for data security, such as data transmission, protecting computer software, and so on. To learn more, google it! Just kidding, here is the link.
Top Businesses That Uses Blockchain for Data Security
Blockchain’s evolution has been compared to the early rising of the internet, getting the attention of many industries like Healthcare, Public Sectors, Energy, and especially Finance as it was predicted that Blockchain would be the beating heart of finance. According to Gartner, Blockchain is at the peak of its hype cycle, and it has become a priority of industry leaders to understand how it can transform their business models. Here are some of the businesses in a different industry that started using blockchain technology.
Banks and Finance
HSBC shifted from their paper-based records to go fully digital and decentralized platform. According to HSBC, they are investing in and developing Blockchain because it helps them improve their efficiency, transparency, and security across established networks. [3]
Visa is one of the companies that use Blockchain that did come a long way in the niche. They Introduced Blockchain as their new platform that deals with their B2B payment services. [4]
Supply Chain
Walmart has been a big fan of Blockchain. They use IBM’s supply chain technology Hyperledger Fabric to back up their supply chain process.
Unilever is also one of the companies that use Blockchain to manage its tea industry and to track all of its transactions in the supply chain.
There are many more companies out there that use Blockchain technology, and in no time, more and more are going to implement this technology.
Here are the top 50 companies that use Blockchain.
Conclusion
Blockchain has a lot to offer regarding data security with its three pillars of Decentralization, Transparency, and Immutability. The ability of Blockchain to decentralized is its key into many business doors. Having Blockchain as data security eliminates the single target point that can be compromised. Access Control, network traffic, and even data are no longer in one location, and it will be hard to penetrate by cyber-perpetrators. Blockchain has the potential to provide you with more security and less vulnerability.
References
[1]L. F. Freedman, “dataprivancyandsecurityinsider.com,” 13 February 2020. [Online]. Available: https://www.dataprivacyandsecurityinsider.com/2020/02/ransomware-attacks-predicted-to-occur-every-11-seconds-in-2021-with-a-cost-of-20-billion/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DataPrivacyAndSecurityInsider+%28Data+Privacy+%2B+Se. [Accessed 7 April 2021].
[2]“Gartner,” 18 November 2018. [Online]. Available: https://www.gartner.com/en/newsroom/press-releases/2018-11-07-gartner-identifies-top-10-strategic-iot-technologies-and-trends. [Accessed 7 April 2021].
[3]HSBC.com, “hsbc.com,” [Online]. Available: https://www.hsbc.com/news-and-media/hsbc-news/harnessing-the-benefits-of-blockchain. [Accessed 8 April 2021].
[4]“visa.com,” [Online]. Available: https://usa.visa.com/solutions/crypto.html. [Accessed 8 April 2021].
[5]G. Iredale, “101blockchains.com,” 26 December 2020. [Online]. Available: https://101blockchains.com/companies-using-blockchain-technology/. [Accessed 8 April 2021].
[6]A. Arnold, “Forbes.com,” 30 January 2019. [Online]. Available: https://www.forbes.com/sites/andrewarnold/2019/01/30/4-promising-use-cases-of-blockchain-in-cybersecurity/?sh=2bdbeef43ac3. [Accessed 9 April 2021].
