The magnitude of damage that can be caused by data breaches cannot be underestimated. If you take a look at the list of some of the largest data breaches, like Adobe, Adult Friend Finder, Canva, Dubsmash, eBay, Equifax, Heartland Payment Systems, LinkedIn, Marriott International, My Fitness Pal, MySpace, Yahoo, Zynga etc. What all these businesses have in common is that we rely on each of them on an everyday basis. It affected 4.9 million people, have unfortunately become an all too often occurrence. It’s just the latest example of yet another highly visible company leaking the data of millions of its users through a third-party security vulnerability. Data breaches caused by third parties cost large companies millions of dollars. They also erode consumer trust by exposing their data to identity theft and countless acts of credit card fraud.
Blockchain:
The much-hyped distributed ledger technology (DLT) has the potential to eliminate huge amounts of record-keeping, save money, streamline supply chains and disrupt IT in ways not seen since the internet arrived. It is the culmination of decades of research and breakthroughs in cryptography and security, and it offers a totally different approach to storing information and performing functions, which makes it especially suitable for environments with high security requirements and mutually unknown actors. This can rebuild the trust by showing consumers exactly who has access and what personal information is shared. When access to data is dictated by a set of smart contracts that are guaranteed to execute, the margin for human errors or compromise is significantly reduced.
Why Blockchains are safe?
our personal identifiable information (PII) lies in the nature of the technology itself. It is a central or mutual database meaning that it is “hard to exploit as a natural monopoly”, Blockchain seeks to create an impenetrable system that ensures all the data that skips through its systems are protected under the best technology. The information stored on a blockchain is also immutable due to the multifarious node network design of blockchains as well as the cryptology governing it.
How Blockchain works?
A blockchain is an ever-growing list of records called blocks which are linked using cryptography. Cryptography is a process which encrypts and secures data communication to prevent third-parties from reading private messages. Blockchain technology is most commonly used by cryptocurrencies. This technology has been adapted by Satoshi Nakamoto to create and implement the cryptocurrency called Bitcoin. Blockchain is a distributed ledger available to everyone. Once the data has been recorded in a place, it will not be changed. It works just like a digital notary with timestamps to avoid tampering of information.
How does it assist in preventing data breaches?
Decentralized: Blockchain’s inherently decentralized nature makes it the perfect technology for cyber security. The ledger technology has virtually endless uses in everything from medical and financial data sharing to anti-money laundering monitoring and encrypted messaging platforms. Every one of these nodes effectively acts as a complete ledger of all transactions, therefore, we call it “Distributed Ledger Technology” (DLT). Blockchain has a system where there is no central unit, it replicates all information, transactions and confidential data simultaneously to all verified participants within the network. This fosters trust, as all shareholders are set on equal footing. Essentially, everyone has access to different levels of information. There isn’t a single person on the network that has the clearance level to handle the dissemination of data. This means there is no central entry point for hackers to gain autonomous access to the network.
Immutability: The ability for a blockchain ledger to remain a permanent, indelible, and unalterable history of transactions is a definitive feature that blockchain evangelists highlight as a key benefit. Immutability has the potential to transform the auditing process into a quick, efficient, and cost-effective procedure, and bring more trust and integrity to the data. Blockchain’s immutability means the attacker can no longer hide their tracks or tamper with access logs to erase records of their unwarranted access.
Managing Access points: Blockchain technology is seeking to secure networks on a massive scale, which essentially means creating a tamper-free system that can handle granting and revoking access based on an un-obscured, fair decision-making process. Operational cryptographic membership cards, and a cutting edge decentralized ledger framework, this system operates on a management strategy that is airtight. The crypto-cards are based on the assumption that businesses have varying access levels, and each player within the network is equipped with only the relevant clearance level.
Digital Signature: A digital signature is a mathematical scheme for presenting the authenticity of digital messages or documents. A valid digital signature gives a recipient reason to believe that the message was created by a claimed sender, that the sender cannot deny having sent the message, and that the message was not altered in transit. Blockchain adds the greatest value in the “proof-of-work” concept – transactions cannot be edited or removed, which greatly secures transactions and signature technologies.
With a wide variety of applications, the blockchain used to establish secure networks. For secure data exchanges, blockchain development services securely are the best to challenge the traditional approaches. Adoption of Blockchain technology can improve the relationship between technology and users privacy. Lastly, data breaches are a global concern, with billions of dollars in lost revenue in the 21st century alone, perhaps Blockchain can be the start of a new era in the fight against cyber-crime.
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