How the Blockchain is Improving Data Security
There has been a lot of talk around the new technology known as blockchain, and the potential benefits that it offers the data security world. The current projections for the global blockchain technology market are that its value will be around $20 billion by 2025. A massive reason for this significant growth potential is the technology’s ability to reduce costs for financial institutions.
What we find fascinating about this emerging technology is the transformative potential it holds in the data security space.
The blockchain is nearly impossible to hack, which is drastically different than the more traditional networks that many are used to. A reason for the hackerproof nature of the blockchain is the data is decentralized and encrypted. On top of that, the data is cross-checked by the entire network. This means that once a record is documented on the ledger, it is nearly impossible to change or remove without someone noticing.
Transactions that are legitimate are confirmed by multiple nodes that exist on the network. The beauty of this is that you would need to go far beyond the current ability of cybercriminals and add supercomputing power in order to hack most of the nodes at the same time… which is nearly impossible for today’s nefarious hackers.
As mentioned above, the blockchain is decentralized. This means that it splits the data into small pieces, which are then distributed across the entire network of computers. The difference being that traditional methods upload data to a server or contain it in a single location.
With the blockchain, every computer (node), possesses a comprehensive copy of the ledger, so no data will be lost if a few nodes happen to go down.
Validation & Encryption
Everything that happens on the blockchain, stays on the blockchain. This is because the blockchain is encrypted, making it easy to prove that data has not been changed in any fashion. Due to the distributed nature of this technology, it is possible to verify across all ledgers that nothing has been changed. If something is changed, the signature is marked as invalid.
As with any new technology, there are obviously still concerns and considerations when exploring the blockchain. It requires significant network bandwidth demands, and a potentially large network communication overhead. However, blockchain holds the potential to transform the world of data security.