A host of emerging cybersecurity threats constantly threaten the digital security landscape. Ever-more sophisticated cyberattacks involving phishing, malware, cryptocurrency, artificial intelligence (AI), and machine learning (ML) have individuals, corporations, and governments on constant high alert.
Even worse, the information security industry suffers from a severe shortage of cybersecurity experts. This, alongside evolving threats, can lead to the “cybercrime epidemic,” where public faith in cherished ideals such as personal privacy, capitalism, and democracy can be shaken.
The good news is that several cybersecurity technologies are now stepping up. Among the prominent ones is “blockchain technology”. While it’s not the latest innovation, it’s perpetually evolving and improving.
Immutable Data
One of the definitive features of blockchain technology is its immutability. This means any information stored remains permanent, memorable, and unchanged. In other words, it can’t be altered, overwritten, or erased for any reason and will always stay the same. This has several benefits, including:
- Data security: Since data cannot be modified, removed, or transferred, blockchain technology can protect data integrity. This will help individuals and businesses ensure the security and accuracy of data, particularly sensitive information.
- Efficient auditing: Data recorded permanently also helps track and audit transactions more accurately and quickly. The more it’s fixed, the fewer works auditors must monitor. This often leads to increased transparency and reduced fraudulent activities.
- Dispute prevention: Blockchain technology’s immutability can also prevent disputes or disagreements due to constant file alterations. These commonly happen in real estate transactions and insurance claims.
What industries can benefit from immutability?
Virtually all industries. In online casinos, for example, blockchain’s immutability ensures that the results from playing online roulette, blackjack, craps or any other games are recorded on an immutable ledger, where it’s out of reach of an administrative body. For players, this guarantees them transparency and fairness.
Similarly, permanent records on an immutable ledger can prevent data loss and downtime in hospitals. If medical records are tampered with, patients could be in a life-threatening situation. This is why health information privacy or patient confidentiality in the medical field is crucial to avoid unauthorised changes.
Blockchain’s tamper-resistant nature also offers transparency in ownership. Take digital art, for instance. Traditionally, digital files can be duplicated and shared easily, so many digital artists struggled with copyright and authenticity verification. However, if an artwork is in blockchain, its unchanged, permanent record can be considered its digital certificate of authenticity, which can help artists verify their ownership.
Decentralisation
In blockchain, decentralisation is the transfer of an activity or organisation’s control, decision-making, or authority to a distributed network rather than a centralised entity, which can be an individual or group that has concentrated authority and decision-making power. Its goal is to achieve a “trustless” environment, which is not a disadvantage.
A trustless environment means nobody needs to be aware or have faith in anyone else because it’s unnecessary. In a decentralised blockchain network, everyone involved has an exact copy of all information in a distributed ledger. Additionally, should their ledger be altered or corrupted in any way, most network members will reject it.
Another advantage of decentralisation is improved data reconciliation. A decentralised data store enables entities to access a real-time, shared data view. This prevents data loss or incorrect data in the workstream, which often happens when data is passed downstream and then resurfaces after organisations exchange data with their partners and stored in each party’s data silos.
Decentralisation can also decrease weak points in systems that may be too dependent on specific factors. These points of weakness could result in systemic failures, including bottlenecks, periodic outages, inefficient service due to resource exhaustion, insufficient incentives for good service, or corruption.
These decentralisation’s perks benefit most businesses, especially those with supply chain management. Like in digital artwork, blockchain enables accurate tracking of a product’s origin and verification of its authenticity. This reduces counterfeits and discrepancies and ensures product safety against contamination, damage and theft.
Smart Contracts
Smart contracts are self-executing contracts in a blockchain transaction. Put simply, they’re digital contracts that can automate the execution of an agreement once predetermined terms and conditions are met. This reduces intermediary involvement, preventing time loss and eliminating the risk of manipulation by third parties.
Since they’re on a blockchain, smart contracts are also irreversible and trackable. They’re also hard to hack for two reasons. First, they’re encrypted. Second, each blockchain transaction record is connected to preceding and subsequent records on a distributed ledger. This means hacking them would require changing the entire chain to alter a single record, which can be laborious and almost impossible.
Final Thoughts
Blockchain is improving digital security with its immutability, decentralisation, and smart contracts. This post, however, isn’t comprehensive. There are more ways this technology can secure and even refine digital transactions. For more in-depth information, read more or consider seeking professional guidance.