On average, cybercrime causes businesses and individuals to lose at least $500 billion each year. That being said, previous estimates of the cybersecurity industry’s valuation used to stand at $2 billion by 2030, but now it has accelerated to $20 billion by the year 2030. That is the current thriving state of the cybersecurity industry due to the increasing number of data security breaches, especially since the pandemic.
We’ve heard about blockchain and bitcoin being used simultaneously for the longest time. Very few understand that blockchain is the technology that powers the existence of bitcoin. Yet, due to the negative connotations, we have ignored blockchain’s potential for most of its existence.
Blockchain security refers to the use of blockchain technology for cybersecurity purposes. Since blockchain technology is inherently built on cryptography, consensus, and decentralization principles, it’s one of the most secure networks on the planet right now. It makes use of a distributed ledger system where the data is structured in small blocks, each consisting of various transactions. The key part is that each block is interconnected, making it extremely hard to tamper with the existing system.
The blockchain network is so tight-knit, it’s hard to tamper or break into it, making it ideal for cybersecurity. This is where the idea of blockchain security was born. Now that we know blockchain security let’s understand its components.
There are four different types of blockchain security, which differ based on whether somebody can participate in the network, and what kind of data they have access to. Based on participation, the network can be Private or Public, and based on access; the network can be Permissioned and Permissionless.
In public blockchain networks, anyone can participate in the transaction, which is usually validated through a network of interconnected computers. There are no restrictions within this network. An excellent example of this is Bitcoin, where miners solve complex problems to “mine money.”
In private blockchain networks, people can only participate when they confirm their membership to that network. It can be commonly found in enterprises or small businesses. When a private network is permissioned, the network validates the transactions through a “selective endorsement” process. Here, they don’t allow you to access/ participate unless you verify your credentials.
In permissionless blockchains, anybody can access and participate in this network. It’s pretty much a no-holds-barred network and poses absolutely no restrictions whatsoever. An excellent example of this is Ethereum (ETH), which uses a Proof-of-Work (PoW) protocol.
In permissioned blockchains, however, you would need a certificate to authenticate your identity, and only then can you access this network. Bitcoin is an excellent example of this type — here, you can participate in the network, but you have to verify your credentials.
Private Messaging — Most social media applications use end-to-end encryption in today’s day and age. But we slowly see a shift towards blockchain simply because of its ability to create a unified API framework. Through this, you have a standard security protocol in place, and any breach that occurs will be immediately apparent.
Secure DNS and DDoS — Distributed Denial of Service (DDoS) attacks occur only when the user cannot access the network they’re a part of. The entire system shuts down as soon as the attack happens. In the case of Domain Name System (DNS), since it's a centralized system, the attackers can pretty much interfere as they wish and implement any command they like. Blockchain security would decentralize these systems and keep them out of their reach for this reason.
Decentralize data storage — A big part of data breaches is that most of our data is stored on a singular server. In the case of a cybersecurity attack, all the information is out there in the open, waiting to be mined. Through blockchain, such systems become decentralized, making it very hard for attackers to find out the specifics of the storage cloud, preventing any attacks.
Protect computer software — The easiest way to gain access to a computer is to ask the user to download a piece of software. We’ve all been there. But, if you implement blockchain security protocols in this case, it verifies the software’s credibility. It records any updates that happen along the way, making it easy to pinpoint the source of the problem.
Destroy Human Safety Adversity — Most of our technology is automated these days. From cars to drones to health monitors, we are also making it risky to human lives. There have been many cases where lives have been lost due to this issue. With blockchain security, you can add an extra protection barrier, preventing any further attacks in these systems.
That being said, we’re sure you want to know whether this data security technology is being used right now. Below, you can find three global organizations that use blockchain security within their systems.
Coinbase — Coinbase is a San Francisco-based company that deals with digital currency. The company runs entirely on digital encryption, where the user’s wallet and personal info are stored on decentralized databases.
Philips — Philips has merged blockchain with artificial intelligence to create a new ecosystem in healthcare. They analyze operational, administrative, and medical data daily using this combination and maintain the integrity of their electronic health records.
Malta — Not an organization but rather an entire country. The Malta Digital Innovation Center (as part of the Malta Government) are already securing their financial technologies using blockchain. They will soon be using it to protect sensitive government documents and public information.
In this article, we’ve discussed how the new age of data security is being ushered in in 2022. Blockchain security seems to be the only way forward in the growing cybersecurity industry, and for good reason. The ability to track and trace the source of any threat is unprecedented in this industry. That is why it will become the go-to security technology in the near future.