Blockchain Technology is a ledger-based information tracking methodology that can counterstrike increasing cyberattacks around the globe. It follows the tactic of decentralization to protect details from unwanted threats. Data states that the USA, China, and Switzerland are the major countries that have progressively made developments in researching on this mechanism.
Blockchain technology can be significantly observed in cryptocurrency, which mainly utilizes decentralized methods to protect details of digital assets and currency trading. In the following sections, we shall try to understand this mechanism better by defining it and its advantages in solidifying cybersecurity.
What is Blockchain Technology?
Blockchain is an asset transaction-tracking mechanism that segments pieces of information into blocks that are immutable or unchangeable. With its sole purpose of maintaining transparency between two or multiple parties while trading digital currencies and assets.
Blockchain technology simply stores every piece of information of a transaction in blocks chronologically and connects it with a chain based on the importance of each block of details alongside distributing it within a network. These blocks are immutable, and no one can access, modify, or delete any details without the consent of all the network participants.
There are four main types of blockchain networks: private, public, consortium, and hybrid. Observing the positive security resolutions, several commercial giants started implementing these networks.
This ledger mechanism was primarily adopted for internal purposes like record keeping within an organization. However, with gradual improvement, organizations employed blockchain to track their external transactions.
Advantages of Blockchain Technology in Tackling Cyber Threats:
Data transparency:-
Data stored with blockchain technology is visible to the network participants. If any modification or deletion of any detail is required, each participant is informed, and further action is taken only with their consent. This method helps in maintaining data transparency among the blockchain network participants.
Enhanced user trust:-
Users trust the security measures when there is standard data transparency. They can use, save, and transact data without worrying about illegal access and data theft.
Protected data distribution:-
Different blockchain networks have different privacy settings. For example, any participant can change or delete the distributed data in a public network. On the other hand, in a private network, only participants with consent can access and modify data. Therefore, protected data distribution is possible with blockchain technology.
Easy traceability:-
When any participant wants to change any information in the blocks, they must get consent from all the network participants. Moreover, information in the blocks is stored systematically. So, data traceability is easier in this methodology.
Standard user confidentiality:-
The technique of cryptography assists in authenticating users by maintaining their confidentiality. It further uses public keys and maintains anonymity to protect the confidentiality of the users.
Protected data storage:-
Blockchain is an immutable ledger mechanism that promotes a non-changeable data-storing method to maintain transparency. Therefore, the stored data is protected from any unwanted action.
Reflecting on How Does Technology Work?
Blockchain mechanism follows a systematic method to store and distribute transaction data among the network participants. Initially, it observes a transaction and stores its details in blocks. The information is stored chronologically based on its significance.
Following that, consensus is taken from the network participants to validate the data. Connecting the blocks with a chain is the next process in blockchain technology. Lastly, the immutable ledger is distributed within the network.
Summing Up!
Blockchain technology can be distinctly beneficial in strengthening cyber security strategies. It is already integrated by many reputed organizations worldwide to protect their company data. The key feature of this mechanism in cyber protection is decentralization, where every network participant initiates the decision-making process.
This method not only protects data from unlawful access but also enhances data security standards with end-to-end encryption. SecureITWorld offers stringent cybersecurity tactics to safeguard organizational data. Read our blogs and articles to improve your knowledge of basic cybersecurity practices.
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