Given the current market conditions, cybercrime is the biggest threat to almost every industry and business. According to Cyber Observer, cybercrime is projected to hit $6 trillion by the end of 2021 and nearly 70% of business leaders feel their cybersecurity risks are increasing. The current protocol cannot keep up with the relentless attacks from hackers.
To combat these risks, blockchain technology is a potentially powerful solution. Blockchain is a distributed ledger technology that creates trust in untrusted networks. It is highly distributed, but the data is transparent and can only be encrypted by the members (or nodes) of the ecosystem that can create, view, and pass information. Therefore, blockchain provides a high level of data integrity and robust security protocol with the capabilities to avoid any foul play by hackers.
NASA used blockchain infrastructure to enable their aircrafts privacy and anonymity with a secure, private, and efficient method for communication with air traffic services and operational support. This showcased blockchain's emergence as a practical solution against cyber attacks.
Picture credit: Unsplash
The following are the most commendable qualities of blockchain to strengthen cybersecurity:
Designed for Decentralized Data Storage
Today, data is the biggest asset to any organization. Businesses collect a tremendous amount of sensitive data from their customers, but unfortunately, companies store all their data in a centralized location. This is very lucrative for hackers and cybercriminals because it is the single point of entry for bad actors to target to gain access to an organization's data.
Blockchain is designed so that there is no single storage location and no central authority. All the data is stored as a block in a chain in an encrypted format. If a hacker tries to modify the data, the whole system will analyze each block of data and find the one that is different from the rest of the blocks and exclude it from the chain. This will stop malicious data from being stored in the system.
Blockchain provides a way to grant limited access to third parties with a cryptographic key. This key can be revoked by the organization at any time to reduce the risk of breaching. Hackers who enter through a third party will be cut off when the key is revoked from the third party.
The other advantages of storing data in a decentralized system are:
- Impossible to breach data
- Decreased chance of data outage
- Significant reduction in storage cost
- Censorship and monitoring
Prevents Data Theft and Fraud
Blockchain repositories are stored in multiple nodes. To destroy or corrupt the data, the hacker needs more than 51% of the computation power of the entire global network, which is impossible. Hence, the hacker needs to take down the entire network as multiple nodes share the same copy of data. The bigger the network and usage, the more impossible it becomes to take down the network.
Moreover, Bitcoin also operates on blockchain technology. Its network is stored on a huge network across the globe and shares the same copy. When a user makes a transaction, all the nodes rush to validate and certify the transaction. Therefore, tampering with the data blocks is nearly impossible. This complex structure provided by blockchain technology is unimpeachable and a secure method to store and share information online.
Helps Prevent Denial-of-Service Attacks (DoS)
Denial-of-Service Attacks (DoS) is a simple, yet, efficient way to take down a website. The hacker continuously sends junk requests to the website until the site can no longer serve the requests and crashes. This attack is possible because the Domain Name System (DNS) service is centralized. The DNS is like a phone book; it maps a website name to a readable IP address. Implementing blockchain technology for storing domain names and IP addresses in an encrypted format will fully decentralize the DNS. Blockchain-powered smart contracts can be used to mitigate DoS attacks.
Secure Your Data With Blockchain
With the help of distributed ledger protocols, it is impossible to infiltrate a network or website whose data storage, network traffic, and access control do not reside at a single location. Therefore, blockchain is one of the most efficient and robust solutions to mitigate cyber threats.
How Nisum Can Help
At Nisum, we help our clients stay ahead of the technology curve with our digital transformation process by gathering expertise in new and effective applications that use blockchain-enabled capabilities, such as distributed ledger, distributed database, and decentralized file storage.
As the COVID-19 pandemic persists and businesses continue to adjust to the new normal, companies need to prioritize protecting and securing data from threats. Nisum has over 20 years of experience in handling cybersecurity threats. We are adept at keeping systems safe and can work on creating a defensive web infrastructure by deploying the right security protocols to help your business keep its most important systems and information safe from cybercrime.
The journey to implementing blockchain technology is not an easy one, but it is mission-critical. Get started by signing up for our workshop, Blockchain Theory and Practice, designed to give you the skills to discuss blockchain intelligently and identify possible real-world applications.
If you aren't ready for a hands-on workshop, download our free guide, “5 Questions to Ask Before Starting Your Blockchain Journey.”