Whenever a new technology appears on the horizon, it is surrounded by hype. This hype can work in its favor or against it depending on whether the technology can meet your expectations or not. Additionally, it can also divert public attention from the strengths and weaknesses of that technology.
Same thing happened with Blockchain. When it first launched, there was a lot of hoopla surrounding it. As the dust started to settle, businesses started to realize the true benefits of Blockchain. Initially, it was restricted to financial institution but as time progressed, we saw its applications in a wide range of industries.
According to Transparency Market Research, blockchain technology market will reach $20 billion by 2024. One area where its use is fairly limited is data security. It can prove to be a game changer for businesses that want to keep their data safe. In order to get the best out of it, businesses should first understand the technology and analyze how it can help their business.
Instead of jumping on the hype train, every business should be able to justify their adoption to blockchain and come up with a strategy for implementation. Just because your competitors are using blockchain does not mean your business should too.
In this article, you will learn four reasons why blockchain is the best solution for keeping your data safe.
Unlike data stored at a single location on cheap dedicated servers, blockchain technology takes a decentralized approach. It breaks down everything into smaller, more manageable chunks and distributes it throughout the computers on your network. It is essentially a digital ledger of transaction with no centralized control. With every computer maintaining its own copy, you don’t have to worry about data loss, even if some of the nodes on the network go down.
By reducing your dependence on middlemen such as third-party vendors and service providers, it ties you to a decentralized ledger. This means that you don’t have to trust any third-party vendors to process a transaction, which is a good thing from a security standpoint as well.
Encryption and Validation
With everything encrypted, you don’t have to worry about your data being stolen during transit. This gives businesses the peace of mind that their data has not been altered. Thanks to its decentralized nature, checking file signatures across all ledgers on all nodes is easy. Businesses can even validate and verify data through blockchain and ensure that it has not been changed. As soon as a record is tempered with, the file signature becomes invalid.
This alleviates the risk of network eavesdropping, man in the middle attacks and phishing attacks. If you have data stored in the cloud, you can also use blockchain to ensure that it remains unchanged by using the same technique. The reliability of the whole data verification process makes blockchain a great option for businesses that are conscious about data security.
Difficult to Hack
With hackers staying one step ahead of cyber security professionals, they can find a loophole in even the most secure systems and exploit it to fulfill their malicious designs. Blockchain makes their job more difficult. The distributed nature of the data and the use of encryption makes your data hacker-proof. The ability to verify and validate your data makes it almost impossible for hackers to change or delete the record without coming under the radar as file signature gets invalid.
With every transaction being confirmed by multiple nodes on the network, hackers will have to hack all the nodes at the same time to hack blockchain which is not the easiest thing to do for even the most experienced hackers. To achieve such a daunting task, hackers will need all the computing power in the world and a lot of time, which they don’t have. This is great news for those who are using blockchain to keep their data secure, as they will experience fewer attacks from cybercriminals if any.
Public and Private
Just like VPN, which lets you browse the web anonymously, public blockchain technology shot to fame by offering similar features. It made headlines when it was first launched. For those who want to enjoy the benefits of decentralized without going public, there is also an option for private blockchain. It restricts access to specific users and offers you a much more secure environment. In order to access private blockchain, you will have to authenticate your identity before you can get privileges, which are only specific for certain transactions.
Will you use blockchain technology for data security? If yes, then which reason compelled you to use blockchain technology for data security? If no, why? Feel free to share it with us in the comments section below.