Blockchain: it was the buzzword of 2017, and it will probably be again in 2018, too.
According to the financial services company Deloitte, over 26,000 blockchain projects have been started using blockchain technology. As popular cryptocurrencies like Bitcoin and Ethereum grow, attention is being given to how this technology can be used in other ways.
The reason for this is simple. Much like how the internet revolutionized access to information and communication, blockchain is aiming to revolutionize it again.
You only have to look at Equifax to see how fragile data security is in the modern world. So where do we go from here?
Can organizations and businesses ever be trusted to look after sensitive data again? Blockchain technology aims to prove that yes, they can.
Let's learn about some of the ways blockchain could be useful in helping make the data your company holds safe in the 21st century.
Blockchain Technology Offers Data Security and Integrity
If you're in the business of handling data, security is more important than it's ever been.
We've already mentioned Equifax. There are dozens of other examples like it. If you're handling sensitive, personal data and you end up losing it to unauthorized access, you're in trouble.
But blockchain technology offers to change that, by altering the way that organizations hold their data.
Think of Bitcoin. How does it work?
It holds all of the 'data' on a decentralized network, shared across thousands of different computers around the globe. That's everything, from completed transactions to the individual Bitcoin wallet balances.
And when changes are made, they have to be done in a way that the network rules allow. For Bitcoin, 'miners' solve complex problems as a method to confirm transactions. No one can just give themselves a million Bitcoin with a few lines of code.
Each transaction is approved, in 'blocks,' so that the rules are maintained, and the integrity of the data is intact.
If you handle sensitive data, like health or school records, a tamper-proof system like that is appealing. Your data is then kept accurate and secure, regardless of any attempt to cause damage.
This isn't something that's only going to be available in the future, either. Blockchain technology solutions that provide this kind of security are available today.
Private Blockchains Provide Privacy for Business and Government
Think about your own organization. Do you hold your data on one server, with maybe one backup? Wouldn't it be better to hold it over several hundred, or thousand?
But if you were holding sensitive data, would you want to hold it the way Bitcoin is held? Open, for everyone to view, with data being transferred at each user's whim?
This is where the Bitcoin analogy falls apart. Bitcoin is a public blockchain where anyone can make changes (within the rules of the network) and anyone can have a 'copy' of the contents. Where a private blockchain differs is exactly as its name suggests, by being private.
That means no open access.
No data that just anyone can view, add to or edit within the rules of the network. Only those granted permission to join the network can do that.
The Estonian government was one of the first governments to see the potential of blockchain and to actively begin to utilize it like this. Their use of the specially designed KSI blockchain means that they can hold sensitive data securely and privately.
For a government, this is perfect. Opening up, for example, criminal data records would not be appropriate, but that doesn't mean the technology can't be used on a more private system, as KSI proves.
This is, of course, variable depending on the blockchain technology in use, and its purpose. But the principles of any private network remain the same -- securing the data, but not centralizing it.
The benefits of a public blockchain remain, but with the added luxury of privacy and through privacy, additional security.
Security That Doesn't Rely on Passwords
Considering that the top five commonly used passwords in 2017 contained 123456, 'password' and 'qwerty,' the human element to security doesn't seem to be getting any better.
It's often people who make networks insecure, by using insecure passwords, not taking basic security precautions and leaving themselves open to data theft.
So what can blockchain technology offer to make security methods stronger in the 21st century?
By ending the reliance on passwords.
Blockchain can offer something that's more secure and less fallible, and less prone to human error. Solutions like Remme, a blockchain data solution that eliminates the use of passwords completely, shows how the use of blockchain is revolutionizing the way data is handled and secured.
Hypr, another blockchain security solution, secures the actual security data itself, encrypting passwords and biometric data onto a blockchain network. From here, the blockchain can then be integrated into an existing business solution, like a payment app.
Such a solution protects both the data your organization might hold and the security solution themselves.
No more hacked password databases or leaked data.
Of course, implementing your own blockchain solution requires having the right strategy in place.
Blockchain Is Revolutionizing Cybersecurity
Governments, banks, and businesses are all implementing their own versions of blockchain technology.
The benefits have become apparent.
But it's security that remains one of blockchain's most apparent benefits. Private, decentralized blockchain networks give organizations security in a way that existing solutions simply can't.
By spreading your data over a network of hundreds of different computers or servers, sensitive data no longer needs to be at a significant risk of loss. You can also be sure of the integrity of the data, as only authorized changes can be made.
And technological revolutions like Remme and Hypr are also doing away with the need to use security methods that rely solely on a human element, securing data in ways that help prevent mass breaches like Equifax's in the future.
No longer will password123 be able to break down your security.
Get in touch with us if you want to find out more about how we can develop a blockchain system that's useful for your organization.