Blocking out the Bad Guys: How the Blockchain is Helping Companies Achieve a Higher Level of Cyber Security
Rising Number of Cyber-Attacks
Digital organizations are incredibly convenient, but they also come with a major downside—the high risk of compromised security. And while it would seem like this issue would be on the decline as the world has become so accustomed to digital organizations and businesses, we see quite the contrary happening. In fact, Check Point reported one out of every 61 organizations is impacted by ransomware each week, while there was a 50 percent increase in the number of attacks on corporate networks last year versus 2020. These attacks don’t just come at the cost of compromised security—there are also immense adverse financial impacts. ComptTIA reported that the cost of cybercrime rose 10 percent in the past year with an average data breach cost of 4.24 million dollars. And there seems to be no end in sight to these trends, according to Embroker, which stated that IoT cyber-attacks are slated to double in number by 2025. So, it seems like doomsday is here to stay for digital businesses. But the blockchain says that may not be the case if it can help it. But how? Read below to find out more.
How Does the Blockchain Fight Cybercrimes?
The main attraction of blockchains and security is that data is chunked into blocks with each block holding a transaction or transactions; these blocks are connected to the ones preceding it, making it incredibly difficult to alter the transaction data because this would change the whole chain of blocked transactions. Blockchains also demonstrate non repudiation, meaning “someone cannot duplicate the authenticity of their signature on a file or the authorship a transaction that they originated.” The decentralized storage of data in blockchains decreases potential exposure vulnerability compared to centralized storage.
Use Cases for Blockchain Security
- Coinbase, a platform where users can buy and sell digital currency, runs on encryption only, storing passwords in a database and ensuring all employees receive a thorough background check.
- BurstIQ is blockchain-based and assists with storing and sharing patient data between departments and institutions.
- Obsidian stores chat and messaging information via the blockchain without the use of email or other authentication. Metadata is randomly distributed throughout a ledger and is thus not easily compromised through centralization.
What Other Innovations are Out There?
Sollensys is just one company posing as the cybercrime police. In a recent white paper, Sollensys stated that they are “developing quantum-resistant (postquantum) cryptographic tools” to 1) fight speed increases in function inversion that threaten ledger authenticity and 2) oppose Shor’s algorithm which enables breaking RSA encryption. They are also identifying blockchain weaknesses that quantum computers can expose and attempting to find ways to address these weak spots.
With no end in sight to the rising number of cyber-attacks and the benefits blockchains offer in terms of security, companies may consider adopting blockchain use for various cases to protect data integrity and prevent compromise. The industry is sure to see continued adoption and variability in use cases for blockchains to combat cyber-attacks, but how many use cases and how fast these will be adopted are difficult to predict.
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