How Does Blockchain Technology Impact Cyber Security?
Cyber fraud is an imminent threat that lots of Internet users have to deal with sometimes. With the new blockchain technology, you can feel safe; this is the solution people were craving for.
Ensuring global cybersecurity over the past few years has become a real challenge. And judging by the number and scale of recent hacker attacks, the situation is only getting worse.
There are more and more hackers these days who keep on improving their methods. But it’s worth noticing that blockchain-proof technology already exists and can protect information from cyber-attacks and increase cybersecurity in many industries. Here is the blockchain explained.
The blockchain definition is quite simple. As Eric Piscini, David Dalton and Lory Kehoe wrote in «Blockchain and cybersecurity. Let’s discuss»: «Blockchain technology can be regarded as a secure technology, from the point of view that it enables users to trust that the transactions stored on the tamper proof ledger are valid»
DDos Protection with the Help of Blockchain Technology
The principle of operation of DDoS attacks is also not that hard, but extremely harmful. Hackers can use several tools to initiate an attack. For example, they send an infinite number of requests to the site, thereby increasing traffic so that the website cannot cope with it. And such an attack continues until the site crashes.
DDoS attacks occur quite often, damaging even well-known companies such as SoundCloud, Twitter, Spotify, etc.
The introduction of blockchain technology allows to completely decentralized DNS, distributing information among a large number of network nodes, thereby protecting the system from hacker attacks. Only those who own it will have the right to edit the domain, and no other user can make changes, which significantly reduces the risk of unauthorized users penetrating. This blockchain technology ensures the safety of the entire system and makes it resistant to attacks except when all nodes in the chain are removed at the same time.
If blockchain technology is implemented in today’s DNS, users will still be able to create domain names. But only authorized users will be able to make changes to domains. Since data will be stored on various nodes (computers) of a chain, and each user will have a copy of all information on the blockchain, so the system becomes invulnerable.
Blockchain Technology Can Protect from Identity Theft
Today we are not surprised with the news that some hacker stole money from bank accounts or hacked celebrity email. Unfortunately, information is easy to access. And blockchain technology makes information theft impossible. If a hacker inserts fake data between existing blocks, a system will notice such substitution – the code of the new block will differ from the sequence of others. Changes in the blocks themselves also affect the code, and so miners immediately notice any changes. Rewriting the entire chain will not work, because blockchain is a distributed database, and information is stored on thousands of computers at the same time.
How Bitcoin Blockchain Helps with Fraud Protection
The more people connect to the network, the more technology develops – the more information is generated, and the more hackers try to steal this information or simply erase it. Blockchain technology allows users to protect their data, thereby influencing the future of the Internet.
Blockchain is nothing more than a database distributed in blocks. Cryptocurrency where this technology usually used is virtual money; everyone can buy or earn (mine) it. The most popular currency in the world now is bitcoin. To mine bitcoins, you need special computers – «farms».
«The blockchain for bitcoin is the same as the Internet for email, – explains Financial Times columnist Sally Davis. – This is a large electronic system in which you can create applications. Currency is one of such applications.» The information itself, which is transmitted through the blockchain, can be a «coin» (that is, used as a currency), and signature, and license or some other internal value of a company. It depends on the area in which the technology is applied.
But here is some more blockchain info to excite you: the use of blockchain has long gone beyond cryptocurrencies (like ethereum vs bitcoin) and can be extremely useful in the field of cybersecurity. Introducing strong encryption and a protocol distribution system on the network can guarantee any business that information will be protected from intruders, like for example, on free pokies.
Keyless Signature Infrastructure and Blockchain Explained in Details
Digital signatures, just like real signatures, are one way to prove someone is who he claims to be. It is much safer than ordinary handwritten signatures. When you visit a site through ACTPS, this is when you use SSL, where digital signatures are used to establish a connection between you and the server.
There are two categories of so-called key pairs; one is called a public key (public key), and another one is a private key. The public key is intended for public distribution. It’s some kind of an address created to receive messages from other users, such as a home address or IP address.
The private key is always kept secret. This key is used as a digital signature for messages that have been sent to other users. The message has a signature included in it, so the recipient can quickly identify the sender just using his public key.
Each transaction performed on the blockchain is digitally signed with the usage of the sender’s private key. This specific signature will ensure that only the owner of this account can transfer money or bitcoin blockchain from it.
New and Improved Solutions and Blockchain Info
Since the mechanism of functioning of the blockchain network is universal, it can be used not only for cryptocurrency settlements but also in any area of society. For example, you can create an information base to hold political elections in any country without interfering with the results from outside, or for insurance claims.
One of the first and most obvious ways of introducing the useful qualities of the blockchain is government services and workflow. The Florida State Tax Office has announced a partnership with the BitPay service to start accepting taxes and fees for property, identification cards, driver’s licenses, car numbers and other documents in Bitcoin and Bitcoin Cash cryptocurrencies.
Many countries have finally decided to use the blockchain during the elections: technology itself does not allow any stuffing or mistakes. Therefore, there is so much talk about the democratization of blockchain and blockchain of democracy.
A recent example is that the first municipal blockchain elections were held in West Virginia, USA. You could vote from anywhere. The authorities are now considering the use of technology during the big congressional elections.
And, of course, a business does not stand aside. A giant like Microsoft has let blockchain into its corporate networks. Having replenished your account, now you can buy software, films, games, and applications for Xbox for bitcoins.
Another example is Shopify, an online platform for retail and online stores; it has added bitcoin payments to its functionality. Thousands of stores using the platform are already accepting them, taking advantage of the speed and, again, low transaction fees.
New projects with the blockchain will be based on its main advantages – openness, security, security.
Therefore, the blockchain will be a good help for any services where users could worry about possible fraud or data safety:
- bank operations
- the medicine
Whether the blockchain is suitable for your purposes depends on whether you consider the use of it more effective than its cost. Many companies may want to implement blockchain technology. But it is crucial that you understand all the pros and cons and would not want to implement it just because you think it is at the forefront of technology. Centralization will always be faster, cheaper, more scalable, and easier to maintain. But if a decentralized system provides the security you are striving for; then this may be the direction for your business.
The use of the blockchain will simplify trading and settlement of money, which has become so complicated over time. And did blockchain technology ever help you to make your life easier?
Author: Thomas Glare has been a blogger for more than 5 years now and specializes in research regarding technology development and recent launches of new and unique gadgets all around the world.