Never heard of blockchain? It’s one of the newest and most exciting developments in technology, and it’s slowly making its way into businesses. Blockchain is a secure electronic method of transaction, also known as a ledger.

All types of business data – from details of transactions and shipments to customer information – can be held as blockchain data. The way it is stored, with all changes traceable and logged, makes it highly secure. Currently, blockchain is mainly used in accounting but has the potential to transform all kinds of businesses, particularly when it comes to exchanging documents such as contracts.

According to Transparency Market Research, the global blockchain technology market is expected to reach $ 20 billion by 2024 and it’s not hard to see why when it offers some important security benefits:

It uses a secure network

One of the many benefits of blockchain is its security – blockchain is based around a network where everyone involved in the transaction has a copy of the ‘chain’ and new blocks added are always stored in a linear and chronological way. It is also decentralised – so it does not rely on one point of control. Since the data is stored on multiple computers, it is extremely secure even if one or two computers in the network fail.

It offers encryption and validation

Blockchain ensures your data is encrypted which means that changing data is difficult. File or document signatures will mark records as invalid if they have been compromised. Everyone in a blockchain network has to validate a transaction – ensuring greater transparency and protection from fraud. This is a game-changer for businesses protecting important records.

It’s near impossible to hack

Even though hackers are becoming more sophisticated in their methods, blockchain is a proven way of combatting the threat. As each block in a chain is connected to all the blocks before and after it, a cybercriminal would have to go back and alter every block in the chain. Networks are also continually updated and kept in sync – this would make it difficult to hack an entire network without a massive amount of computing power.

It can be private

You can create private blockchains that restrict assets to specific users. You still get the benefits of the decentralised location – where all computers involved have access, but anyone accessing a private blockchain must authenticate their identity. Access can also be restricted to specific transactions.

It can protect IoT devices

Devices that use the Internet of Things, such as security cameras, doorbells or switches, are vulnerable to cyberattacks. Blockchain can be used to protect these devices from attack – protecting the data exchanges between devices. It can be used to attain near real-time data transmissions and ensure communication between devices, located thousands of miles apart.

It can protect your website

The DNS or Domain Name System is distributed on domain name servers that all communicate with each other around the world. It’s essentially a contact list of IP addresses that match with domain names (websites). Cyber criminals can break into the connection between the website name and IP address and render websites unusable. If your domain information is stored in a blockchain system, it makes it much more difficult for people to exploit that information.

The crucial factor in blockchain as a cybersecurity method is decentralisation. When access, network traffic and data itself are no longer held in one location, it becomes much more difficult for cybercriminals to attack. Many businesses, such as major accounting firms are already using blockchain to streamline business processes, so it is only a matter of time before it is used for its security benefits.

For more information about blockchain or the data protection services we offer, contact us.