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Data breaches have, unfortunately, become an all-too-common reality. The Varonis<\/a> 2021 Data Risk Report<\/a> indicates that most corporations have poor cybersecurity<\/a> practices and unprotected data, making them vulnerable to cyberattacks<\/a> and data loss.<\/p>\n
With a single data breach costing a company an average of $3.86<\/a> million<\/a> and eroding a brand\u2019s reputation and its consumers\u2019 trust, mitigating the risks is no longer a luxury. However, as cyberattacks get more pervasive and sophisticated, merely patching up traditional cybersecurity measures may not be enough to fend off future data breaches.<\/p>\n
Instead, it\u2019s imperative to start seeking more advanced security solutions. As far as innovative solutions go, preventing data breaches by utilizing the blockchain<\/a> may be our best hope.<\/p>\n
Blockchain technology, also referred to as distributed ledger technology (DLT), is the culmination of decades of research and advancement in cryptography and cybersecurity<\/a>. The term \u201cblockchain\u201d was first popularized thanks to cryptocurrency<\/a>, as it\u2019s the technology behind record-keeping in the Bitcoin network.\u00a0<\/p>\n
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This technology makes it extremely difficult to change or hack a system, as it allows for the data to be recorded and distributed but not copied. Since it provides a brand-new approach to storing data securely, it can be a promising solution for data breaches in any environment with high-security requirements.<\/p>\n
Built on the idea of P2P networks, a blockchain is a public, digital ledger of stored data shared across a whole network of computer systems. Each block holds several transactions, and whenever a new transaction happens, a record of that transaction gets added to every network participant\u2019s ledger.<\/p>\n
Its robust encryption and decentralized and immutable nature could be the answer to preventing data breaches.<\/p>\n
Enhancing data security via encryption<\/h2>\n
World Wide Web inventor Tim Berners-Lee has said recently that \u201c we\u2019ve lost <\/a>control of our personal data.<\/a>\u201d Companies store enormous amounts of personally identifiable information (PII), including usernames, passwords, payment details, and even social security numbers, as the Domino\u2019s data leak in India (amongst others) has made clear.<\/p>\n
While this data is almost always encrypted, it\u2019s never as secure as it would be in a blockchain. By making use of the best aspects of cryptography, blockchain can finally put an end to data breaches.<\/p>\n
How can a shared ledger be more secure than standard encryption methods?<\/p>\n
To secure stored data, blockchain employs two different types of cryptographic algorithms: hash functions<\/strong> and asymmetric-key algorithms<\/strong>. This way, the data can only be shared with the member\u2019s consent, and they can also specify how the recipient of their data can use the data and the window of time in which the recipient is allowed to do so.<\/p>\n
Hash functions<\/h3>\n
When the first transaction of a chain occurs, the blockchain\u2019s code gives it a unique hash value. As more transactions occur, their hash values are then hashed and encoded into a Merkle tree, thereby creating a block. Every block gets a unique hash with the hash of the previous block\u2019s header and timestamp encoded.<\/p>\n
This creates a link between the two blocks, which, in turn, becomes the first link in the chain. Since this link is created using unique information from each block, the two are immutably bound.<\/p>\n
Asymmetric encryption<\/h3>\n
Asymmetric encryption, also known as public-key cryptography, encrypts plain text using two keys: a private key that\u2019s typically produced via a random number algorithm, and a public one. The public key is available freely and can be transferred over unsecured channels.<\/p>\n
On the other hand, the private key is kept a secret so that only the user can know it. Without it, it\u2019s almost impossible to access the data. It functions as a digital signature, like real-world signatures.<\/p>\n
This way, blockchain gives individual consumers the ability to manage their own data and specify with whom to share it over cryptographically encoded networks.\u00a0<\/p>\n
Decentralization<\/h2>\n
A primary reason for the increase in data breaches is over-reliance on centralized servers. Once consumers and app users enter their personal data, it\u2019s directly written into the company\u2019s database, and the user doesn\u2019t get much say in what happens to it afterward.<\/p>\n
Even if users attempt to limit the data the company can share with third parties, there will be loopholes to exploit. As the Facebook\u2013<\/a>Cambridge Analytica data-mining scandal<\/a> showed, the results of such centralization can be catastrophic. Additionally, even assuming goodwill, the company\u2019s servers could still get hacked by cybercriminals.<\/p>\n
In contrast, blockchains are decentralized, immutable records of data. This decentralization eliminates the need for one trusted, centralized authority to verify data integrity. Instead, it allows users to share data in a trustless environment. Each member has access to their own data, a system known as zero-knowledge storage.<\/p>\n
This also makes the network less likely to fall victim to hackers. Unless they bring down the whole network simultaneously, the undamaged nodes will quickly detect the intrusion.<\/p>\n
Since decentralization reduces points of weakness, blockchains also have a much lower chance of succumbing to an IP-based DDoS<\/a> attack than centralized systems using client\/server architectures.<\/p>\n
Immutability<\/h2>\n
In addition to being decentralized, blockchains are also designed to be immutable, which increases data integrity. The blockchains\u2019 immutability makes all the data stored therein almost impossible to alter.<\/p>\n
Because every individual in the network has access to a copy of the distributed ledger, any corruption that occurs in a member\u2019s ledger will automatically cause it to be rejected by the rest of the network members. Therefore, any alteration or change in the block data will lead to inconsistency and break the blockchain, rendering it invalid.<\/p>\n
The bottom line<\/h2>\n
Even though blockchain technology has been around since 2009, it has much untapped potential in the field of cybersecurity, especially when it comes to preventing data breaches.<\/p>\n
The top-notch cryptography employed by blockchain protocols guarantees the safety of all data stored in the ledger, making it a promising solution.<\/p>\n
Since nodes running the blockchain must always verify any transaction\u2019s validity before it\u2019s executed, cybercriminals are almost guaranteed to be stopped in their tracks before they gain access to any private data.<\/p>\n
Jenelle Fulton-Brown is a security architect and internet privacy advocate based in Toronto, Canada helping Fortune 500 companies build future-proof internal systems.<\/em><\/p>\n
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\n Jenelle Fulton-Brown<\/p>\n","protected":false},"excerpt":{"rendered":"
Check out all the on-demand sessions from the Intelligent Security Summit here. Data breaches have, unfortunately, become an all-too-common reality. The Varonis 2021 Data Risk Report indicates that most corporations have poor cybersecurity practices and unprotected data, making them vulnerable to cyberattacks and data loss.With a single data breach costing a company an average of<\/p>\n","protected":false},"author":1,"featured_media":607591,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4644,46,151],"tags":[],"class_list":{"0":"post-607590","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blockchain","8":"category-technology","9":"category-using"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/607590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=607590"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/607590\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/607591"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=607590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=607590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=607590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

Event<\/h3>\n\nIntelligent Security Summit On-Demand<\/span><\/p>\nLearn the critical role of AI & ML in cybersecurity and industry specific case studies. Watch on-demand sessions today.<\/span><\/p>\n<\/div>\n