4 benefits of using blockchain over traditional data security technologies
Due to its ability to provide transparency, immutability, and decentralized storage of data, applications using blockchain for data security can soon replace existing technologies that provide centralized storage.
Although experimentation and innovation can enable businesses to use blockchain in a broad range of applications the use of blockchain for information security seems to be the most obvious application area. Blockchain, which is synonymous with protection is being considered for a myriad of applications that requires the storage of information in a safely encoded and easily retrievable way. Blockchain provides numerous benefits over traditional data security technologies, four of which are listed below:
Blockchain gives a decentralized, transparent database that guarantees trust between network participants. The participants can be partners in a supply chain or businesses in a consortium, who use blockchain to record transactional information and other shared information. Because of the blockchain’s democratization of control, it enables all participants to have equal access to the stored data and seeks consensus from all participants before approving any change. This decentralized trust model can enable the formation of secure ecosystems that groups of companies can use for storing and sharing data.
There has been a misconception among the public and the business network regarding the compatibility of blockchain with the recently passed General Data Protection Regulation (GDPR). The apparent incompatibility is because of the competing nature of blockchain which is basically permanent with GDPR, which requires organizations to erase private information upon the owner’s demand. Blockchain permanently stores older blocks of data to maintain an unalterable series of records and transactions. This guarantees the provenance of each new block can be checked and followed back all through the chain’s history. GDPR requires the deletion of personal information when requested by the individual, which, theoretically, blockchain does not allow. However, designing a GDPR-compliant blockchain is possible and multiple methods are being devised to achieve that. This can enable the use of blockchains to store anonymized data, such as customer records through hashing and tokenization.
Data integrity is a basic property of data stored on the blockchain. Accessing and modifying the data stored on the blockchain is almost impossible without notifying and looking for accord from the whole system. Accordingly, blockchain can be utilized as the wellspring of truth by members and drive a safe biological community that can work in a trustless way, i.e., without requiring any trust or even familiarity with the other party.
Traditional data storage and security systems are highly centralized, which means they have a single point of failure. This implies that any external attack on the central server like malware or brute force hacking attempts may lead to partial or total loss of stored data. Depending upon the type of information stored on the system, the results of information loss can be devastating for businesses and even economies. Blockchain-powered storage is very strong to hacking and different types of outside attacks. Since similar information is stored on every one of the nodes on a blockchain, there is minimal to no risk of data loss. This means that blockchain-based data security and storage are highly suited for the storage of vital information, such as financial transactions and customer identities.
Although the use of blockchain in information security systems appears seems much more beneficial than the use of conventional technologies, there are a few significant difficulties associated with blockchain that need addressing before the transition. Business leaders should not be intimidated by these challenges, but be motivated by the potential business value that can be achieved, and should push for gradual adoption of the technology.
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