How to Use Blockchain to Secure Your Business
You probably already know that blockchain technology has applications far beyond cryptocurrencies like Bitcoin, Litecoin, and Ethereum. But did you know that it’s also helpful in securing your business? That’s right! This technology can help prevent data breaches while also offering an improved level of security overall. Here’s everything you need to know about using blockchain to secure your business today.
What is blockchain?
Blockchain technology is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. Each node (i.e., a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically. The blockchain has complete information about exchanges between Bitcoin addresses from day one.
The decentralization benefits of blockchain
You don’t have to trust your business counterparties. Thanks to blockchain technology, it is only a matter of time before financial systems become decentralized. Any current system that relies on an intermediary — for example, exchanges or escrow services — could be replaced by peer-to-peer networks that are secured by cryptographic proof instead of trusted intermediaries. That will reduce transaction costs, errors, and fraud dramatically while increasing speed and eliminating many single points of failure. The potential gains in efficiency and security alone are reason enough for any business to consider adopting distributed ledger technologies (DLTs). Companies such as Google, Facebook, and many others have already started exploring blockchain applications in their industries.
Creating private blockchains
One of blockchain’s most promising use cases is in creating secure systems for private data. If you’re a company that deals with sensitive customer data, such as personal information or credit card details, blockchain could help you store and manage that information more securely. The tech behind private blockchains is called permissioned, and works similarly to how companies use intranets today: It allows authorized parties access to certain files and information based on their role within an organization. The key difference between public and private blockchains is access management. With a public blockchain like Bitcoin or Ethereum, anyone can participate if they have a strong enough computer; there are no restrictions on who can make transactions or read files, except those defined by administrators of that network.
Benefits of using a private blockchain
This is something that most people don’t realize when starting their search for how blockchain can benefit them. The main reason for using a private blockchain is that it gives you complete control over what data you store on your chain and who has access to it. If you’re worried about competitors or hackers getting hold of information they shouldn’t have, then a private blockchain is perfect. But because there are fewer nodes on a private chain, it doesn’t always have great resilience.
6 key tips for implementing a successful blockchain project
- Identify and clearly define a use case that fits into your business model; avoid hype.
- Analyze all of blockchain’s functions in detail, look at technology and standards, check if they are evolving, read what other companies do with blockchain, etc.
- Evaluate whether private or public blockchains make more sense for your project
- Study how others approached their blockchain projects
- Get an understanding of who will be participating in your project
- Build a team around you who has experience with development and management
Conclusion
It’s crucial for businesses of all kinds to protect themselves from cybercriminals. Luckily, there are a variety of ways you can utilize blockchain technology, which is an innovative digital ledger that’s basically a list of transactions stored in blockchains across a network of computers to secure your business. The technology has become increasingly popular as it protects against errors and tampering, maintains an unchangeable record, and effectively keeps things private. What’s more, blockchain technology also has applications outside of cryptocurrency; its many benefits can help protect businesses from hackers and data breaches.
This article was first published on the Cyber Hub Intelligence blog
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