Blockchain's potential in cybersecurity

Enterprise Security Magazine | Saturday, January 14, 2023

The promise of blockchain as one of the safest ways to conduct digital transactions has made it an attractive proposition for many sectors, including financial services.

Fremont, CA: Blockchain: What is it?

 There are millions of users worldwide participating in a blockchain, which is a distributed network. Blockchain data is encrypted and accessible to each user. Each member is responsible for ensuring that the data added to the blockchain is accurate. It is a digital, distributed, and decentralized public ledger that records transactions and tracks assets in a business network. 

For cybersecurity and risk management, why is Blockchain security promising?

 The cybersecurity industry benefits from blockchain's unique features that create an impenetrable barrier between hackers and the system. Since blockchain is inherently decentralized, cryptographic, and consensus-based, data cannot be manipulated. Furthermore, it ensures the integrity and transparency of data. 

The three main tenets of blockchain security are:

Decentralization

Individuals do not own blockchains.

Transparency with pseudonymity

 Anyone with access to the blockchain system can see all blockchain transactions and corresponding values. A blockchain has a unique alphanumeric address for every node or user. The transactions are carried out between blockchain addresses in a totally transparent manner while maintaining a high level of privacy.

Immutability 

 In the database, transactions are linked to previous transactions, so they cannot be altered once they are added. 

In terms of cybersecurity, these three laws make blockchain a potential solution for building secure, impenetrable systems. In cybersecurity, blockchain eliminates the risk of a single point of failure, which is the most compelling argument.  

Blockchain use cases for cybersecurity

The promise of blockchain as one of the safest ways to conduct digital transactions has made it an attractive proposition for many sectors, including financial services. Organizations can leverage their integrity assurance to build cybersecurity solutions for a wide range of applications and technologies. To boost cybersecurity, here are some blockchain use cases: 

In order to break into systems, hackers are increasingly using edge devices such as thermostats and routers. Cybercriminals can gain access through central administration or edge devices due to the rapid adoption of smart devices and home automation. 

By decentralizing the administration of IoT systems and end-user devices, blockchain can help secure the Internet of Things and end-user devices. This means the device can make security decisions on its own without relying on a central admin or authority. These advantages are among the main reasons the technology is being widely used in financial institutions, such as banks. For example, end-user security is a particularly difficult issue in banks. Cyber attackers often gain access to network infrastructure through simple logins, centralized IT infrastructure, and weak passwords. By using blockchains, multi-party authentication via blockchain-based SSL certificates can be performed without passwords for users and devices. Due to the distributed and decentralized nature of the network, attacks are virtually impossible.

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