Using Blockchain for Cybersecurity
Cybercrimes are major issues globally, and they are increasing day by day. Hostile nation-states, organized criminals, and individual hackers are exploiting these vulnerabilities constantly. With blockchain gaining prominence, is there any benefit in using blockchain technology for cybersecurity?
Here, we explain the role of blockchain cybersecurity in improving information security.
On this page:
What is Blockchain Technology?
In the last couple of years, blockchain and Bitcoin technology have been the hot digital trends. Bitcoin is an online currency, and it can be transferred and received by anyone using a computer without human intervention. It’s the fastest transfer method, and no government corruption can take place.
All the transactions are made through blockchain technology. It allows everyone to monitor their transactions, and nobody can speak a lie or fraud.
No personal information is attached to the blockchain, but organizations can still track your transaction using your wallet address. This process of tracking is similar to used by traditional banks but more efficient.
Related: Understanding Blockchain Technology
Role of Blockchain Technology in Cybersecurity
You can’t only use this technology for simple payments, but it is also helpful for various processes and systems. It means it can improve the cybersecurity of different fields. By using blockchain technology, you can enjoy other advantages, such as:
- It uses the most advanced encryption for data security
- You can store it on a peer-to-peer basis in different locations
- Verified Blockchains are permanent records, and they include an embedded audit trail.
Cybersecurity using Blockchain
Blockchain improves cybersecurity, but one thing should be clear: to process transactions, a person must unencrypt the data. When the data is unencrypted, it is vulnerable to hacking. That’s why the cryptocurrency losses already exceeded US$1 billion.
For example, when a user purchases cryptocurrency, the only way to trade or sell it is to hand over the exchange’s private and public encryption key. By doing this, the owner completely loses control over encryption.
On the other hand, when blockchain technology is in place, no one can access the key until the owner allows access to an authorized person to review the data. In this case, the security of key pairs is more controllable.
Furthermore, you can verify legitimate records when identical blockchain copies are maintained in different data storage systems. Moreover, these keys are secured by other encryption key pairs. So, an additional layer of security is added by using blockchain in cybersecurity.
Advantages of Using Blockchain in Cybersecurity
Since the use of blockchain technology, lots of developments and improvements have been observed in Cybersecurity. Let’s check how blockchain is revolutionizing Cybersecurity.
- Decentralized Data Storage – As the name indicates, you can store Blockchains anywhere on the global cloud storage network. An encrypted blockchain is only 8 MB in file size and can be stored and transmitted in different copies in any computer or data storage system in the world.
- Provides Security for IoT – The Internet of Things (IoT) is a network of billions of linked devices. The best way is to incorporate blockchain in Cybersecurity is to use it during the processing of IoT data. For example, the facial recognition algorithm allows authorized users in the database for an intelligent door lock auto storage. More importantly, all this will be done automatically by the device itself. It means the data will be readily available within a centralized computer server.
- Improved Security for DNS – Domain Name Servers keep the website records and can be easily hacked. Unauthorized persons can easily redirect website URLs. Blockchain technology can help secure these DNS records.
- Improved Security for Private Messages – It has applications for improving the security of instant messages. It is an alternative to end-to-end encryption. Blockchain allows the possibility of secure intra-messaging exchange between different systems by using an API framework.
The usefulness of blockchain technology isn’t only limited to cryptocurrencies. Programmers are also using this technology in protocols to benefit industrial sectors.
- Chat Security – Every business uses different communication channels, such as telephone, email, and chat rooms. Chat rooms are easy to use; that’s why they have become an essential aspect of communication. The drawback of chat rooms is that they can be easily hacked and accessed. Blockchain decentralized systems can make chats more protected and secure.
- No Need for Authorization Process – Blockchain technology helps businesses to authorize their users and devices. It removes human intervention, and the risks of cyber-attacks are drastically decreased. When users use passwords, they are weak and allow hackers to target their accounts. On the other hand, a decentralized system removes the need for passwords and improves security.
- Payment Traceability – Blockchain technology allows users to track transactions. Organizations will have a record of every transaction because everything is signed digitally and time-stamped. It improves the security because you’ll have a map of who’s touched the transaction. Moreover, it significantly reduces identity theft and fraud. So, blockchain technology can help gain the user’s trust.
Does Blockchain help improve Cybersecurity?
Blockchain technology has become popular for its use in Bitcoin transactions. It has lots of other applications.
It doesn’t only keep the record of transactions, but it’s an open ledger, and it’s not the property of anyone. Moreover, it can help record all types of sensitive information. Therefore, it’s ideal for Cybersecurity applications.
We have covered the advantages of blockchain technology to make people aware of its usefulness. Blockchain Cybersecurity is a significant improvement in the IT world. Moreover, it has improved data security and user’s trust.