Itâ€™s quite easy to overlook the potential benefits and disadvantages of any new technology when the hype reaches a fever pitch in the way it has with blockchain. According to Transparency Market Research, the global blockchain market will be worth US$ 20 billion within the next five years.
It can play a crucial role when it comes to reducing costs, especially for financial institutions. Therefore, the blockchainâ€™s business value-add will go up to US$ 176 billion by the end of 2025. Besides, blockchain provides some substantial advantages to the business world, so it is considered a game-changer for numerous industries.
It could be decisive in terms of data security, but itâ€™s not a cure for all corporate ills. In case you are embracing it, you should understand the pros and cons of blockchain in detail.
You need to have a clear and effective strategy before adopting new technology, no matter how much positive vibes it creates.
Let us take a closer look at how blockchain could create a beneficial impact on data security.
Provides Encryption and Validation
Thereâ€™s no doubt blockchain offers next-level encryption since everything that takes place on it is encrypted. Likewise, it is impossible to alter the data, which resides on the blockchain. You can verify file signatures on all the nodes across all the ledgers in the network that they have not changed to be on the safe side. If anyone does the trick by changing the record, the signature becomes invalid.
Apart from this, you can take huge benefits from smart contracts by using them within the blockchain to ensure that specific validation occurs when particular conditions are fulfilled every time. If someone changes the data, all the ledgers on all the nodes in the network confirm that the change is done successfully.
Offers Secure Data Storage
What makes blockchain stand out from the rest is its data protection feature that secures the shared community’s data. As a result, no one can snoop or look into any sensitive data stored on the blockchain whatsoever.
Interestingly, the data available on the blockchain is distributed throughout a network of people, making it easy to manage the data. Above all, public services can use this technology to keep public data safe and decentralized without any hassle.
As far as the business models go, they can save a cryptographic signature of a data or a vast form of data on the blockchain. This way, users can protect their crucial data to a certain extent. Blockchain breaks down enormous data into small chunks in a distributed storage software, which means the data is encrypted and secure.
Harder to Hack
Next to impossible, it is impossible to attack or hack blockchain because the data is decentralized, encrypted, and cross-checked by the whole network. Once the information is stored on the ledger, hackers cannot alter the data without invalidating the signature.
The multiple nodes on the network have to confirm every legitimate transaction. Hence, hackers will need to hack most of the nodes at a time to decrypt blockchain successfully. This activity would require unbelievable expertise and time, not in the grasp of contemporary cyber goons.
Bearing in mind that hackers attack usersâ€™ devices 2200+ times every day, using blockchain technology must secure usersâ€™ data from privacy invasion, data breaches, and other privacy issues.
New Opportunities for Banking Sector
Banks can adopt blockchain technology to reduce the chances of financial fraud by improving their customersâ€™ financial data security. Through blockchain, it becomes easy to share, view, and store digital information securely. Furthermore, it uses cryptography encryption to protect every transaction. By doing so, banks can enhance their existing security and transparency levels to new heights.
If we talk about the possible application of blockchain technology in the banking sector, the Bank of New York Mellon is already using the blockchain idea to increase the productivity of its 360BDS platform used to create backup records of treasury bond settlements.
Limitations to Keep in Mind
Blockchain is still a nascent technology that will expand over time. It is imperative to keep an eye on its potential problems and limitations. Before implementing blockchain, you should understand the importance of network size. If your data is not well distributed, it can turn out to be a honeypot for hackers and other cybercriminals.
However, blockchain has all the right attributes to make a long-lasting contribution to data security in the coming years. The prevalent use cases of blockchain are worth studying even if it is not a panacea.
For instance, New Zealand has a population of around 5 million people, but the country is progressing regarding Blockchain application in the right direction. A company by the name of Centrality primarily works as a Blockchain venture studio.
The company assists innovators that help them create a decentralized peer-to-peer apps marketplace. Centrality offers different resources to startups, small businesses, and developers to create customer-eccentric decentralized apps in its ecosystem.
This way, small businesses and startups do not have to build such apps from scratch. Interestingly, Centrality has built a portfolio that includes 20+ apps, and the story does not end here as the list keeps growing rapidly.
Considering the use of Blockchain technology in improving data security, the significance of a good VPN for New Zealand has become a need of the hour. This is because a new cyber-attack called privacy “Poisoning” can adversely influence Blockchain technology’s performance.
The attack loads users’ private data such as personal information, including names, addresses, and credit card details on Blockchain illegally. This situation can put the network in conflict with local laws to a certain degree.
Hence, organizations need to use VPN services to secure their Blockchain network’s next level. These online privacy tools help them encrypt users’ data. Companies can protect their users’ data from different sorts of privacy issues like hacking, phishing, malware, and viruses significantly.
Blockchain is not a temporary solution when it comes to data security. The concept is highly relevant and has a considerable potential to influence other industries regardless of their nature and dynamics. The successful implementation of blockchain may harness the relationship between technology and usersâ€™ data privacy.