The rapid growth of internet-based technologies has resulted in cybersecurity threats growing proportionally as cybercriminals get more sophisticated. No data is safe and this includes intellectual property, personally identifiable information, health records and financial data.
Some of the strategies that cybercriminals have resorted to include denial of service attacks which result in the entire operations of an organization getting disrupted.
Cybercriminals have also turned to using ransomware where they will attack the networks and computers of a given entity or individual and deny access to files unless they are paid ransom. On an annual basis it is estimated that cybersecurity costs the worldwide economy approximately $450 billion.
Like with a lot of other sectors such as energy, digital advertising, payments, or real estate for example blockchain technology could offer a solution to stemming the growing cybersecurity threats. Since blockchain is in simple terms a digitized and decentralized public ledger, it could prevent fraudulent activities by employing consensus mechanisms which would detect data tampering.
The technology resolves the problem of lack of trust between two parties. Due to its decentralized nature it would also deny any would-be attacker from having a central entry point since by storing the data over multiple databases there is no hackable point. By nature decentralized systems are more secure compared to the centralized structures which exist today.
The decentralized nature of blockchain also ensures that existing data is safe from removal or tampering. This is because when there is an attempt to tamper with or alter a block, the entire system will still conduct an examination of each and every data block in order to determine the one which is different from the rest. Once the block that is the odd one out is located it is excluded from the entire block and tagged as false.
A blockchain also possesses the capacity to detect tampering in real time and take remedial measures without requiring any human intervention. With the blockchain technology it is also possible for business enterprises to authenticate users and devices without requiring passwords. By eliminating human intervention from the authentication process one of the weakest links with regards to cybersecurity is removed from the equation thereby reducing the chances of a successful IT security breach. To authenticate devices without requiring passwords each device needs a specific secure sockets layer certificate.
Timestamps and digital signatures
Blockchain technology also makes traceability possible since all transactions that are added to a blockchain are timestamped as well as digitally signed. This way every transaction can be traced and the corresponding party located via their public address as all transactions are cryptographically associated to a user. A blockchain?s audit capacity not only enhance security but also transparency.
One of the growing cybersecurity threats is DDoS attacks and a blockchain can assist in preventing this due to its decentralized nature as it would make these attacks harder since the contents would be distributed over a large number of nodes. This would make a system impenetrable and impervious to DDoS attacks on the condition that all the nodes are not wiped clean at the same time.
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