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The impact of Blockchain when it comes to data security

Blockchain can be used as a viable alternative to cloud-based and server-based companies

November
28, 2018

3 minutes of reading

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Blockchain as technology has conquered the world. According to the Transparency Market Research, the global blockchain technology market will have a value of 20 billion dollars by the end of 2024. The blockchain hype has reached unprecedented levels in the world and this makes it easy to lose sight of the potential benefits and weaknesses. Considered one of the most disruptive technologies in all sectors, Blockchain certainly has the potential to reduce costs, increase transparency, improve safety and increase efficiency, among others.

The main advantage of using blockchain as a technology is the improvement of the data security it provides. Data is by far one of the most important resources in the world today. Some of the biggest conglomerates in the world like Alphabet, Amazon, Facebook, Apple, Microsoft, etc. They are companies that focus on data. Data protection has become the most important priority for companies all over the world. This is where Blockchain can be used as a viable alternative to cloud-based and server-based companies.

Let's take a look at how the impact of the Blockchain on data security:

Decentralized way to protect data

Since blockchain as a technology is decentralized in nature, it is not based on a central control point. It is a digital ledger of transactions with each computer with a complete copy of the data. The lack of a single authority makes the system fairer and considerably safer. Instead of relying on a central authority to negotiate securely with other users, blockchain uses innovative consent protocols through a network of nodes to validate transactions and record data in an incorruptible way. Because blockchain is a ledger of information, it is extremely important that the information stored is honest and accurate. Because data is saved on multiple computers, they are extremely safe even if one or two computers are not functioning properly.

Encryption and validation

The Blockchain platform ensures that your data is encrypted, which means that data alteration is a difficult task. You can also save a cryptographic signature of a document or file on a Blockchain. This would give users a way to make sure that a file is not timed without the need to save the whole file on Blockchain. Because of its decentralized nature, you can always cross file signatures on all books on all nodes in the network and verify that they have not changed. When you look at a file, you can ensure that it is the same version of the existing document at another time. If someone changes a record, then the signature is rendered invalid. Nobody can deny that the blockchain offers a reliable and independent verification of the data.

Difficult to hack

As the name suggests, blockchain is a chain of digital "blocks" that contain transaction records. Because they are not contained in a central location, blockchains do not have a single point of failure and can not be changed by a single computer. They are decentralized and distributed registers on peer-to-peer networks that are continuously updated and kept in sync. Each block is connected to all blocks before and after it. While hackers can penetrate traditional networks and find all the data in a single repository, extrapolate or corrupt them, the blockchain makes it so difficult to manage.

As technology, which is growing in popularity all over the world, blockchain seems to be the ideal platform for companies to store their data. It is safe, reliable and transparent which makes it even more attractive to companies.

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