As per the recent reports released by Transparency Market Research, it has been estimated that blockchain technology across the globe is estimated to be valued at $20 billion by the end of 2024. If you take a look at blockchain technology, it has taken the world by storm suddenly. Today, individuals do not trust another individual with their private data, so they search for a tamperproof and secure platform. Blockchains helps one to create this platform. However, in context to the above, one should not overlook the potential pros and cons due to its hype across the world.
Blockchain is considered to be one of the primary disruptive technologies across multiple industries. It has the tremendous potential to cut down on costs, boost transparency, improve security and increase functionality among users.
When blockchain is deployed as a technology, it has the ability to enhance data security. Data is a crucial asset globally today, and some of the world-famous conglomerates like Amazon, Facebook, Microsoft, Apple, etc., are companies that are data centric in nature. Securing data is one of the most significant priorities for businesses across the globe. They can use Blockchain technology to be a potent alternative to server and cloud-based organizations.
Given below is an insight into the impact of blockchain when it comes to the security of data-
- Encryption and validation – The blockchain platform ensures your data is completely encrypted. This means any modification in the data is a tough task. You can easily save any cryptographic signature of a document or any file on the blockchain with success. This gives your users assurance that the file is not tampered with. You can save the whole file on the blockchain without stress. Due to its decentralized nature, you can also cross-check the signatures on the file across all the ledgers on the network nodes to verify they have not been changed at all.
When you look at the file, you can guarantee it is the same version of any document that existed at another time. In case someone changes ant record, the signature becomes invalid. Blockchain ensures independent and reliable verification of the data for documents.
- A decentralized way to secure data – Blockchain technology does not depend upon a single source of control. It is a digital ledger containing transactions that every computer has a copy of. Since there is no single point of control, the system is fair and considered to be even more secure. There is no dependence on any central authority for securely transacting with the other users of the system.
Experts from esteemed companies in database management and administration RemoteDBA.com say that blockchain optimizes consensus protocols that are innovative via a network of many nodes to validate all the transactions and record the data in such a way that it is incorruptible. The data and information stored must be accurate as blockchain is a ledger that contains data. Since the information is stored on many computers, it is predominantly secured even if a single or more computers malfunctions.
- Prevents hacking – The term Blockchain means “digital blocks in a chain,” and these blocks are the places where the records or the data of transactions are stored. They are all decentralized and distributed ledgers from peer-to-peer networks that remain updated regularly and kept in sync with one another. Since they are not stored in one place, the blockchain does not have one point of failure. Hence, it cannot be changed even from one computer.
Every block is connected to all the blocks prevailing before and after it. Hackers have the ability to break into conventional networks and get all the information they want in one repository where they can corrupt or even exfiltrate it; blockchain, on the other hand, makes it difficult for them to hack.
Blockchain as a technology is growing popular across the globe, and it seems to be the perfect platform for organizations to store huge sets of information. Blockchain is not only reliable, but it is secure as well as transparent. This is the reason why it is greater in appeal to modern organizations today.
Regarding the above, you should be aware that there are two kinds of blockchains- public and private. Both of them are different, and they can come in variations when it comes to the levels of security they offer.
Difference between private and public blockchains
Public blockchains deploy computers that are connected to the Internet publicly for validating the transactions. They are bundled into blocks and later added to the ledger. Any computer that is connected to the Internet can join them.
Private blockchains only permit known businesses to join. They together form a private business members-only network. However, the blockchain is only secure as its infrastructure. If there are loopholes here, it will be easy for hackers to break through and create havoc in the system.
Private blockchains and salient points to keep in mind
When it comes to establishing a private blockchain, you should decide on its ideal platform for deployment. Even though blockchain technology has several inherent traits that give you security, if there is vulnerability in your system, it will be manipulated by people that have malicious intent. When you are creating a private blockchain, you must ensure that it has an infrastructure equipped with integral security that should-
- Stop anyone, even the regular users and other authorized administrators, from accessing any sensitive data.
- Deny any illicit attempts to transform data or any applications in the network
- Safeguard encryption keys deploying the highest security grade standards so that they cannot be misappropriated
With the above capabilities, the private blockchain network will have the extra protection that it requires to stop attacks from inside the business. Therefore, when it comes to deploying blockchain technology for data security, businesses should always keep the above factors in mind. All its records are protected by cryptography, and this is why it gives you an added layer of security with success.
