Blockchain technology rose to prominence in the past years
Contactless payments took their reign as the global pandemic hit, and the world was sent to lockdown. With the massive increase in online transactions, blockchain technology rose to prominence in 2020 and 2021. It is used in financial transactions, land ownership registries, healthcare, agriculture, and more.
Blockchain transforms businesses by increasing the speed and efficiency of commerce and trade. The data which is once inserted into the blockchain cannot be corrupted. This element of blockchain builds trust among business partners.
Blockchain also plays a huge role in cybersecurity in mitigating vulnerabilities and strengthening data integrity. It reduces the risks of DDoS attacks as the data stored is distributed across several nodes by decentralizing the Domain name system (DNS). Hence, there is no single vulnerable point for cybercriminals to attack.
Let us take a look at some of the benefits of blockchain.
Data which is recorded and stored in blocks is irreversible and time-stamped; that is, the information that has been documented cannot be altered. Hence, business networks can easily record and target their assets without fearing data getting altered by an external entity. The immutable nature of data thus strengthens its integrity of data.
A decentralized system
A blockchain is a decentralized system where records are not validated by a third party and are entirely based on peer-to-peer networking, therefore increasing the efficiency and speed of data verification. Despite the anonymity, trust is mutual. Healthcare facilities, for example, should be able to check the list of medicines transported without the help of a third party, in order to prevent data corruption by cybercriminals. This will help reduce fraudulent practices.
Each recorded data is in the form of blocks connected using cryptography which means every transaction is verified after solving a complex mathematical algorithm. In simple terms, every record is end-to-end encrypted. Since the data is replicated and distributed across the network, every user has access to a copy of the recorded information. Therefore, no unauthorized activities will occur as the data is not stored inside a server but across the user’s computers.
Track the origins instantly
It is easy to trace a product’s origin using blockchain technology. For example, in supply chain businesses, the party can analyze the product’s authenticity and ensure if the product is the same as what they have ordered. This also helps you quickly solve issues related to a particular product by confirming the history of product dealings registered in the blockchain.
Smart contracts are automated functions programmed according to one’s personal needs. Through smart contracts, individuals can control who has access to the data in the blockchain. The user can determine the conditions they want from the blockchain, and developers will program those. The program will be executed only when these conditions are met.
To conclude, blockchain is poised to revolutionize the digital world with its advanced capabilities. Blockchain uses distributed ledger technology which helps in safeguarding the data by adhering to the CIA triad. As technology advances, it’s essential to analyze the risks linked to blockchain technology. Organizations must therefore stay abreast with the development of blockchain and its functions to stay ahead of any cyber threats.