Blockchain, All I want for Christmas is security

As the holiday season nears, cybercriminals are out to take advantage of the people’s Christmas vacation to attack businesses and various industries. Check out the article below to learn more about the features of blockchain that can help your business network be less susceptible to fraud. Who knows, blockchain just might be part of your Christmas wish-list.

Role in cybersecurity

Governments, universities, power companies and ‘big name’ enterprises all over the world have been victims of elaborate hacks by cyber criminals for the past few decades. In 2018, 75% of CEOs and board members name cybersecurity and technology acquisitions among their top priorities, and blockchain-based solutions are among the commonly considered options. 

Recently, NASA also decided to implement blockchain technology in order to boost cybersecurity, and prevent denial of service and other attacks on air traffic services. The independent space agency is planning to use the same distributed ledger technology that is often associated with bitcoin and other cryptocurrencies.

The clamor for blockchain-based solution is a manifestation of the efficiency of blockchain, as it continuously proves itself as a viable technology when it comes to protecting businesses and other entities from cyber attacks.

Security features

Although blockchain contains loads of efficient security features, consensus and immutability are two of the most important concepts that should be considered.

Consensus refers to the ability of the nodes within a distributed blockchain network to agree on the true state of the network and on the validity of transactions. One thing that needs to be highlighted is the fact that the process of achieving consensus is dependent on the so-called consensus algorithms.

On the other hand, Immutability refers to the ability of blockchains to prevent alteration of transactions that have already undergone the process of confirmation. Although these transactions are often relating to the transfer of cryptocurrencies, they may also refer to the record of other non-monetary forms of digital data.

All in all, consensus and immutability provide the framework for data security in blockchain networks. While consensus algorithms ensure that the rules of the system are being followed and that all parties involved agree on the current state of the network – immutability guarantees the integrity of data and transaction records after each new block of data is confirmed to be valid.

Future developments

According to Forbes, with time the trust factor in the capabilities of blockchain is expected to rise. The real impact of a distributed ledger is still under speculation, but given the spurt of applications already crowding the markets, it is only a matter of time before blockchain penetrates every industry sector. 

As the digital transformation of global businesses continues, blockchain will naturally evolve as the best transactional platform across the globe.