As our lives are evolving continuously into the digital space, the question of ours and our data's safety, there becomes more than pressing.
How protected is the personal information of users online?
How are businesses managing the data of their clients?
These questions continue to spark conversations among common users and security experts.
One of the solutions for improving Internet data safety may be the connection between blockchain and cybersecurity.
While the technology was first introduced by cryptocurrencies, its usage in other fields has expanded rapidly. Here we'll explore in detail what is the connection between the two fields and whether it is possible that blockchain can solve prominent cybersecurity issues.
If you want to learn how the potential digital future may unfold, you may be able to find some insight about that here.
Blockchain and Cybersecurity: Individually Explained
To understand the topic better, let's look at blockchain and cybersecurity individually and find out what each of them is.
Starting with the latter since it's more commonly known, cybersecurity, also popular as computer security, is the protection of computer systems and networks from malicious attacks. This type of protection is required to prevent unauthorized information disclosure, data theft, or damage to hardware or software systems.
Protecting information is essential for individual users but even more for companies that deal with any kind of clients' data. There, a potential breach could result in large-scale damage.
As mentioned already, blockchain was first introduced by cryptocurrencies. Back in 2009 an anonymous person or group presented a new kind of money to the world – Bitcoin. The most revolutionising aspect of this event, though, was the technology that the crypto presented. A new type of distributed ledger on which the responsibility of overlooking the processes is dispersed across computers worldwide.The term “decentralized” is often used to describe blockchain since there's no single figure with bigger rights than the rest. Typically on a blockchain, there are many users that follow closely the events, all equal.
As time passed and the popularity of the technology increased, its use cases also multiplied. Today many traditional sectors implement blockchain into their systems as a secure and transparent way to store information. The reason for this is that information on this type of network can't be easily altered – if you try to do it, you'd distort the whole chain of blocks. In simple words, if you try to edit one block with information, you'll affect the rest of the information on the whole chain.
That's why enterprise blockchain has been gaining considerable popularity. Long gone are the days when company's data was stored in inconvenient paperwork or dispersed digital records. This type of blockchain provides businesses with the ability to easily access their information on an innovative network. Enterprise blockchain allows procedures like supply tracking, settlements of international transactions or exchange of information within the company and between partners to happen considerably easier than before.
How Do Blockchain and Cybersecurity Connect?
After explaining blockchain and cybersecurity individually, let's explore how the two can connect.
By default, most networks on the Internet are centralized. That means that the data is stored in one place and there are few IP addresses. While this may be convenient for the owners of the networks, it creates many opportunities for malicious attacks to easily breach and potentially steal said data.
It's not hard to understand how blockchain and cybersecurity can work in this case.
As mentioned, public blockchains store network information across a large number of computers. This depends on the type of blockchain, it can be done with computers across the globe or with the machines in a company. The important thing is that information is distributed, and if a copy gets damaged or somehow corrupted, there's always an accessible backup.
That’s why companies like INDUSTRIA offer a perfect solution for businesses around the world. Building an enterprise blockchain, INDUSTRIA allows different firms to store their information in a more secure and transparent way. Utilizing the open-source blockchain platform Corda, companies can benefit from seamless storage of P2P transactions. The company offers services that can enhance blockchain and cybersecurity connections for any firm. They provide consulting and advisory, rapid prototype development, as well as blockchain and DLT development. Clients from many industries can benefit from such services to increase the security of their data and modernize their processes.
Another solution that the mutual connection between blockchain and cybersecurity may solve is done through the consensus algorithm.
Naturally, when the information is distributed into many computers, this means that the number of people monitoring it increases. In that way, a malicious attack or some kind of anomaly may be detected in very early stages and stopped before it's caused damage. This secures data and record management as it upgrades the trust level between parties in the network.
With enterprise blockchains like the ones Corda offers, there's a mechanism called “uniqueness consensus”. It's initiated through a notary that oversees double-spending has not occurred and approves the transactions. This way, the blockchain is overseen by a “qualified professional” that can say “yes” to the right procedures.
What Are the Use Cases of Blockchain in Cybersecurity?
There are several practical ways in which blockchain can improve cybersecurity. After having explored the link between the two, we'll look in more detail at how the innovative technology can benefit online safety and in which ways it can be used.
1. Blockchain Facilitates Traceability and Transparency
Blockchain transactions are anonymous – you only see the address of the person buying or selling an asset.
The records on this type of network are available for everyone to see forever. This depends on the type of blockchain, whether it's public or private. Public blockchains offer transaction data freely online, everyone can see, for example, the wallet addresses of who purchased or sold bitcoins and how much.
Private or enterprise blockchains, on the other hand, are used within companies, but they also allow different participants in the organization to access the data.
Such examples are the enterprise blockchains that offer full data visibility to administrators. The rest of the employees have role-based accounts. This means that depending on their rights within the network, they can access various levels of information. That way, transparency is ensured while regaining control and safety of the data on the blockchain.
2. Blockchain Increases Network Availability and Attack Resilience
When we discuss the connection between blockchain and cybersecurity, we must note that the distributed ledger helps lower downtime and assists with malicious attack protection.
On one side, when a blockchain distributes information across many computers, it reduces data exposure. In that way, it helps to redirect users when a centralized database experiences downtime or is under a malicious attack.
The other thing that should be mentioned is that blockchain technology enhances the protection of Denial-of-service attacks, commonly known as DDoS. This is achieved through decentralizing domain name systems, or DNS.
3. Authentication of Software and Individuals Is Made Easier Through Blockchain
When it comes to blockchain and cybersecurity, one of the most important collaborations between the two is authenticating software updates. Every computer user knows this – if you don't update your system and applications frequently enough, you're more prone to attacks or system failures.
This is even more true for companies.
Through blockchain, they can follow and verify updates that are real and mark malicious threats that pretend to be ones. This also applies to individuals, as with blockchain, their information can be easily monitored, and businesses can confirm or deny if a person is presenting their real data, or not.
4. Ownership Can Be Proven Easily Through Blockchain Technology
One of the biggest concerns of Internet users today is the safety of their personal data.
Once you put something online, whether it's your photo or a drawing you did, everyone can claim ownership, and proving them wrong may not be possible in all cases. Here blockchain and cybersecurity can be united again to benefit users.
Once the ownership of a certain document or file is recorded on the blockchain, everyone can see who the actual owner is, and other users can't easily claim a piece as their own. This can be facilitated through non-fungible tokens, NFTs, that record the data of the creator of a certain file on the blockchain, and with every following action, this data remains unedited.
Blockchain and Cybersecurity: What Lies Ahead?
After discussing it in more detail, it seems more than obvious that blockchain and cybersecurity can work together to ensure Internet users' safety, right?
Blockchain can solve several issues that contemporary cybersecurity experiences. The decentralized nature of the network can be beneficial for companies, as it can disperse information and lower the risk of an attack that can permanently damage it.
Incorporating the technology into businesses' record and transaction operations can modernize them and enhance the overall security they offer to their clients.
INDUSTRIA offers services related to enterprise blockchain that can considerably improve the services of companies. Not only the future of cybersecurity lies in blockchain, but that of storing information, initiating transactions and tracking different data. All that's left is to witness this progress and see in what way will the connection between this distributed ledger and other technologies continue to develop and make life easier for users.
INDUSTRIA is a global technology consulting, development, and ventures company with expertise in the field of enterprise blockchain, confidential computing, process automation, and digital experience. As one of the official partners of R3, we are implementing cutting-edge blockchain technologies and reshaping the fintech world. At INDUSTRIA, we are focused on providing permissioned blockchain solutions, such as Central Bank Digital Currencies, Electronic Bill of Lading, and Smart Contracts. Our solutions apply to a wide range of industries and use cases to empower and modernise society.
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