Cybersecurity has become the most crucial aspect of our daily life now that the world has transformed into a digital space. As the trend of remote work has increased considerably, organizations and individuals are spending large sums on saving themselves from hackers and cyberattacks. Even then, attackers can still exploit traditional and inadequate security measures and hack into the systems. Now is the time to opt for a new cybersecurity approach; Blockchain technology. In this article, we will walk you through the benefits of using Blockchain and its Distributed Ledger Technology (DLT) for cybersecurity and how you can enhance online security.
What are Blockchain and DLT?
DLT is the technological protocol that uses a networked database and allows us to access, share, validate, conduct transactions and update records. The data is stored in electronic ledgers that are decentralized. Blockchains are created using Distributed Ledger Technology. It organizes data into blocks which are chained together. DLT and Blockchain allow the recording of interactions and transfer of data without any centrally controlling authority or intermediary. This is the major difference between a bank and crypto exchange. Banks are centralized, while crypto and Blockchain have a decentralized approach to data. This data stored on it can be anything from money, securities, sensitive information or personal data. One important thing to remember is that all blockchains are distributed ledgers, but all distributed ledgers are not blockchains.
DLT and Blockchain have potential use cases in several industries and enterprises, including cybersecurity.
How Blockchain Provides Solutions to Increase Online Security:
Before we look at the ways, Blockchain can help enhance security; it is important to know how the growth of the internet has fueled cybercrime. As the internet has grown tremendously, remote work has taken over, and businesses have gone digital, a new digital realm has been created all over the world. New technologies such as AI, machine learning, crypto and NFTs have opened up many innovative ways to generate income and provide services to consumers.
However, the innovations have also led to increased cyberattacks. Hackers and malicious actors continuously seek ways to exploit these technologies through the internet and steal data, funds or other personal information.
The good news is that Blockchain and its distributed ledger technology provide solutions to cybersecurity issues. Here are some ways Blockchain is disrupting cybersecurity:
Prevention from Theft and Fraud:
At present, phone numbers and email addresses are used to secure online transactions, but can we really trust the security of the sites where we enter our data? Hundreds of security breaches have happened because the security measures of conventional systems are highly vulnerable to attacks, and even encrypted sites can easily be hacked.
Blockchain, however, can change the security settings of these traditional systems. When employed correctly on the system, Blockchain will help secure and verify data through advanced cryptography. As a result, unauthorized changes, hacks, and fraud can be stopped altogether. Internet users will be able to store, retrieve and use data in a secure way anywhere, anytime. And if a data breach still occurs, the transparent nature of Blockchain can help identify and resolve the loose link. Such an approach would not only improve cybersecurity by making it incredibly difficult for hackers to compromise records produced on the Blockchain, but also, the data can be kept on millions of computer networks throughout the world without the fear of loss. Blockchain also eliminates the need for third-party middlemen, making it far more efficient than older cybersecurity methods.
Distributed Ledger and Collaborative Consensus Algorithm:
The primary benefit of Blockchain is the usage of a distributed ledger. Distributed ledger technology reduces the risks associated with centrally stored data. It allows the creation of a dispersed public key infrastructure where transactions are recorded across different nodes. This makes it extremely complex for hackers to enter the network, steal, compromise or tamper with data.
The involvement of intermediaries is another flaw of the conventional financial systems that Blockchain eliminates through its collaborative consensus algorithm. Without the requirement for a centralized authority, Blockchain keeps monitoring the network for malicious activities, cyberattacks, vulnerabilities, and thefts. A single set of security measures can be deceived, but not the collaborative consensus algorithm. This improves authentication while also securing the processes of data transmission and record keeping.
One of the easiest attack routes for hackers is a weak password. Attackers are always ready to apply their tactics and hook users into giving their passwords and credentials. Sometimes, passwords are too easy to guess. Even after applying encryption, such as two-factor authentication, cyberattacks still happen. Here, Blockchain can help by enabling authentication without passwords, for example, by creating a distributed public key infrastructure built on top of Blockchain to offer password-free access to systems for both devices and humans. Instead of a password, it supplies each device with a blockchain-based SSL certificate that hackers cannot forge.
Undoubtedly, Blockchain has the potential to revolutionize many industries, including ecommerce, healthcare and even cybersecurity. The technology has proven its power in addressing security vulnerabilities by removing the human aspect, often regarded as the weakest link in security systems. Blockchain technology improves cybersecurity by offering end-to-end privacy and user encryption via a distributed ledger and verified protocols. That will undoubtedly assist us in protecting ourselves and enhancing our online security.