In today’s busy digital era, secure storage and handling of data have never been more vital. With constantly sophisticated cyber attacks and data intrusions, organizations and individuals alike are looking for novel ways of securing sensitive information. One such upcoming technology making waves in data security is blockchain. Though best known for use with energizing virtual currencies like Bitcoin, uses of blockchain are much more widespread than virtual currency. Blockchain is indeed becoming an omnipresent solution for data security storage and data security sharing.
So how is blockchain assisting in secure data storage, and why do businesses need to use it? Let’s see how blockchain assists in secure data storage and how it’s revolutionizing the game when it comes to data protection.
What is Blockchain?
Blockchain is a decentralized, distributed technology for a ledger that is utilized to record transactions on multiple computers in a way such that the alteration of the history of information becomes impossible without the network’s consensus. Decentralization and cryptography make it resistant to fraud and tampering and thus the best at the moment for secure data storage.
Blockchain technology has the ability to store information in “blocks,” which are addressed sequentially in the form of a chain. A block will have a date stamp, transaction details and the hash pointer of the preceding block, thereby making tampering with any particular block impossible. It will make adding a block to a chain permanent storage, which cannot be altered. Its best feature makes data unadulterated and unaltered, the best of any data retention solution.
Blockchain for Data Security
One of the strongest reasons why companies are embracing blockchain as a form of data protection is the way blockchain offers an unbreachable and tamper-proof method of information storage and processing. There is just one authority that holds sway at the center of databases whose duty is to protect and preserve data whole and thus can be hacked. The criminal will merely incinerate the database but steal or manipulate millions of confidential records.
Blockchain, however, exists on a network of non-centralized computers (nodes) and every node has a copy of the entire blockchain. This in effect gives the guarantee of no single point of failure because everything is duplicated. If a hacker breaks into one of the nodes, the information cannot be tampered with or changed because the other nodes will possess the original copy of the right information.
Apart from that, application of encryption techniques such as hashing and digital signatures within blockchain blocks data tampering. Modifying data or even any transaction within the blockchain requires a network consensus, which once again prohibits data manipulation by unauthorized users. That is what security through use of blockchain provides, and thus it is most suitable for application in fields such as finance, health, and supply chain management where data integrity matters the most.
Secure Information Sharing using Blockchain
The second important benefit of blockchain technology is the ability to secure sharing of data among parties. In such business sectors where various organizations need to share confidential data, like healthcare data or banking data, security of data along with confidentiality is a matter of great concern. Traditional information sharing would be susceptible to being dependent on intermediaries or centralized databases, which could be hacked by data attacks.
Blockchain does away with middlemen because it is an open system where data can be transferred between two parties directly and securely. Data transferred via blockchain is encrypted and stored in a manner that the two parties can verify data without compromising its integrity. Because blockchain’s ledger cannot be edited, the two parties are guaranteed that data is not manipulated and the transaction history is clean and traceable.
This renders blockchain the best solution for organizations like healthcare, whose data about their patients should be transferred between various healthcare providers securely, or value chains, where data about where the product is from, how it is produced, and is being exported should be transferred securely. Benefit of Blockchain in Secure Data Storage
- Immunity: The data in the blockchain can’t be modified or deleted, so it’s permanent and no one is even in a position to make any modifications to it.
- Decentralization: Data isn’t saved in each node but in multiple nodes in such a way that there should be no point of failure and hackers get frustrated to make any modifications in data.
- Transparency and Auditability: Blockchain has an open book available to all the data transactions, which can be audited and certified by everybody.
- Enhanced Privacy: Blockchain allows data to be encrypted so that privileged users are the only ones able to see sensitive data.
- Lower Cost and Simplification: With reduced middlemen and reduced centralized infrastructure requirements, blockchain can potentially make it easier for businesses to reduce their cost of doing business.
Conclusion
Application of blockchain in safe storage of data and safe data transfer cannot be eliminated. With the application of blockchain technology, companies can improve data security, privacy, and integrity, and it becomes nearly impossible for hackers to alter confidential information. With the evolution of blockchain technology, its application in protecting data is dwindling, offering companies from every industry a groundbreaking tool for protecting data.
If you are keen on finding out how your business can apply blockchain to secure data, or if you would like to use blockchain for secure data management, Blockchain77 is where you find professional solutions and advice. To learn more about how blockchain will transform your requirement for data storage, check out Blockchain77.
With the use of the promise of blockchain, companies can now depend on the data being secure, available, and trusted in an interconnected world.