How can Blockchain Improve Data Security in 2020?
There is no doubt that Blockchain rapidly rose to become one of the most crucial developments of this era. It is a technology that is being used worldwide by several types of businesses to control and reduce operational expenses.
Various business sectors such as finance, banking, information technology, agriculture, health, and supply chain, etc. use this technology. However, the most important aspect of this technology is its role in securing public and organizational data. Even service providers such as Spectrum customer service (1-855-837-6837) use this technology to secure their servers and customers’ information.
Blockchain and Its Importance in the Business World
To define blockchain in the simplest words, we can say that it really is a chain of blocks. The block being the digital information and the chain being a public database where the information is stored. It became popular as a DLT (distributed ledger technology) that allowed businesses to abolish the maintenance of large quantities of documents. It also helps organizations save money by streamlining their supply chain operations.
Apart from that, blockchain offers transparency in business transactions. It has the capability of generating secure networks of communication for business partners across the globe in real-time. Blockchain is a technology that supports everything from payment networks to supply chains to data-sharing in the healthcare sector to deals made in real estate, and so on.
#1. Better Encryption
Blockchain gained fame for providing the best quality of encryption as everything that happens on its platform is completely encrypted. In that same spirit, blockchain makes it impossible for hackers to tap into any data or change it by any measure. To ensure that your data is secure and unchanged, you can verify the signatures of files on all the nodes across every ledger in a given network. In case anyone manages to change a record in an unverified way, the file signature becomes invalid.
Moreover, you can ensure a certain validation takes place if anyone changes any data file. By incorporating smart contracts, you can make sure all involved ledgers and nodes in a given network validate that the change in data took place via valid means.
#2. Improved Data Storage Security
Blockchain’s data protection attribute sets it apart from other available data protection technologies because it safely protects the community data that is shared. Therefore, any data stored on the blockchain becomes inaccessible to hackers.
Blockchain allows the public data to be decentralized with ease while keeping it safe. This can be done by distributing the data among a network of people. Doing this also facilitates easy management of the said data.
Businesses, however, often save a huge amount of data or a data’s cryptographic signature on the blockchain. What happens, in this case, is that the data gets chopped into smaller portions in the software of a distributed storage allowing the data to be encrypted.
#3. Impervious to Hacking
Hacking a blockchain is next to impossible. When a certain data is stored on a blockchain, first it is decentralized, then encrypted, and finally, it is cross-referenced by the entire network. So, a hacker cannot make changes to data. If he does, the file signature of that data would become invalid which would raise red flags throughout the entire network.
In the case of a transaction, several nodes on the network must confirm the legitimacy of each transaction that takes place. This means, if a hacker wants to take control of a transaction, he/she must hack into multiple nodes at any given time to decrypt the blockchain. This requires major hacking skills that are uncommon in your run of the mill hackers.
Things to Consider
Blockchain is relatively a novice technology. It has a lot of potential for growth and it will expand in the coming years. It is important to understand its existing limitations and problems. Before you start using blockchain, you must find out the role of your network’s size in the protection of your data. I made use of my high-speed Charter Spectrum internet and did some digging about this issue. What it means is that if your data is not properly distributed, you may become an easy target for cybercriminals or hackers.
However, blockchain has the potential to make an enduring contribution in the area of data security in the coming years. this technology is implemented successfully, it may help form a deeper bond between the technology and the data privacy of users.