With rising cases of identity theft and personal information mining, it is more important than ever to find a tamper-proof, secure platform to share and store personal data. Blockchain technology is paving the way for the creation of such a database. Learn more about the crucial ways it is enhancing data security for institutions and individuals around the globe.
Advantages of the Blockchain for Data Security
In an increasingly digital world, data has become one of the most valuable assets. Protecting it is a critical priority for anyone who uses or depends on it, from massive conglomerates to private individuals. Below are some of the most significant ways the blockchain is changing the face of data security:
- It creates a system of trust.
The transparent and decentralised database created by the blockchain ensures total trust among all the participants of the network. For instance, it can grant equal access to all parties involved in a supply chain.
Since the system is decentralised, no single entity has a monopoly over transactional information. Consensus is required from all parties before any change can be made to the data. Not only does the technology ensure data security, but it also enhances network efficiency and collaboration.
- It enhances resiliency.
Since traditional security and data storage are centralised, they tend to have a single point of failure, such as a central server. This makes the stored data vulnerable to brute-force hacking attacks and malware. It may also lead to data theft or corruption, which can be devastating not only for businesses but also for private owners of the data.
In contrast, blockchain technology companies can design highly resilient storage systems that are impervious to hacking and other external attacks. Within the blockchain, all nodes store the same data, which practically eliminates the risk of data loss. This makes blockchain-based storage ideal for storing sensitive information, such as customer identities and financial transactions.
- It protects data through validation and encryption.
All data on a blockchain platform are heavily encrypted, making them almost impossible to modify without the right permissions. The technology also provides several ways of data validation.
For instance, individuals can save a cryptographic signature for a file on the blockchain.
This will immediately prove that the document is untampered without users having to re-save the entire file. The blockchain’s decentralised nature also allows the cross-checking of file signatures across every node on the network. Modifying the data in any way renders the signature invalid, further reinforcing the reliability of the signature.
Blockchain technology makes it possible to independently verify data beyond any other system available today.
- It can be public or private.
The blockchain also enhances the versatility of data security. While public, anonymous blockchains dominated recent cryptocurrency news, it is important to note the availability of private blockchains. They allow organisations to restrict access to users within their network.
All the advantages of blockchain technology still apply to private blockchains, but all users are required to authenticate their identity to access the data. In addition, these networks can also limit what a user can do to the data. For instance, some users can be granted editing privileges, while others are only allowed to view the data.
Blockchain: Transforming the Landscape of Data Security
While blockchain technology is still at its early stages, its potential to revolutionise data security is undeniable. Combined with major leaps in the space, such as the upcoming Bitcoin halving predicted to break its 20,000 per coin All-Time High, it is safe to say that the technology is here to stay.
Thinking of investing in the blockchain? There is no better time than now to start building your wealth based on this world-changing technology.