A record number of phishing attacks aimed at stealing users’ personal information has been recorded, and there is no sign that this trend will slow. New ways of hacking systems have been a major contributor to these grim statistics.
Business needs to make their processes hack-proof to protect both their finances and reputations, and one way to do this is to use blockchain for data privacy. Using advanced ransomware methods and DDoS attacks, hackers today steal data like intellectual property, health records, personal identifying information, and financial data. When it comes to solving these issues, blockchain and data privacy usually go hand-in-hand due to the way the technology is built.
Using blockchain data privacy for businesses has many benefits, and we will explore these in this article. It is important to remember that although you already know how blockchain works, specific elements go into making it a reliable and efficient method of securing data.
Privacy-supporting elements of blockchain
An immutable architecture is at the foundation of blockchain technology, which is trustless by nature. The technology is appropriate for data privacy and security due to several factors embedded in its ecosystem.
The concept of blocks and hashes :-
Blockchain stores data in the blocks – ones that are time stamped, signed by the creators and carry a header and a body. These data-containing blocks are connected through a chain in a way that a block contains cryptographic hash of the previous block, which ensures the immutability of the system and blockchain data protection.
Architecture that is distributed :-
The fact that blockchain data privacy follows a distributed architecture without any single point of failure is another factor that makes it a hero move for businesses. An attacker cannot target the data since the risk is dispersed across multiple nodes on a geographically wide network.
Validation of consensus :-
In order to make changes to the block, different authorised members would need to reach a consensus. With this combined with the fact that every change on the blockchain network is communicated to all members of the network, it is almost impossible for hackers to stealthily attack the system.
Blockchain security and privacy are ensured by a vast amount of encryption. Typically, encryption involves two different types of algorithms, each with subsets and branches – asymmetric-key algorithms, and hash functions across nodes. This ensures that unauthorized users cannot access the data stored.
Public addresses :-
In addition, every node in a blockchain has a private key and a public address, contributing to privacy and security. The public address, which is a combination of letters and numbers, is only shared when a node participates in a transaction. Transactions and letters and numbers can be seen by people on the network, but private keys cannot be viewed.
The factors/features behind blockchain privacy solutions are what create the value for business owners, but understanding how these factors/features translate to blockchain privacy use cases is important. In the next section, we will discuss that.
What are the use cases for blockchain data privacy?
In order to support data privacy, blockchains are used in a variety of ways, both in established use cases as well as new applications that are being developed every day. Consequently, the approaches to privacy and security that are currently in use on blockchain might be upgraded in the future. Despite this, today’s technology is capable of solving a wide range of business-level security issues.
In addition to providing enterprises and startups with a better use case for blockchain data privacy, here are the different use cases that make blockchain the top choice for improving their efficiency.
Skype, Microsoft Teams, and Slack, for example, are some of the most popular messaging platforms used in businesses because they carry business data with weak security algorithms. It is becoming more common for messenger apps to be built on fully transparent and censorship-resistant structures with end-to-end encryption for all communications, including calls, video conferences, messages, and file transfers. Data privacy and blockchain success are exemplified by them.
With the Wispr app, which uses the VOBP (Voice Over Blockchain Protocol) security system, third parties cannot see the messages that are encrypted using AES-256 encryption protocols.
The technology’s integration with connected devices is one of the most significant uses of blockchain for data security. A centrally administered device makes it easy for hackers to access entire IT systems via edge devices and AI-driven home devices.
Data privacy can be introduced using blockchain and IoT. Several ways can be used to accomplish this:-
- Connected devices can be tracked in real-time, content duplication can be detected from harmful sources, and consensus algorithms can be embedded to verify identities in real-time.
- Using encryption to protect information sent between network devices.
- It is important to decentralize the central authority or administration.
DDoS protection and DNS security:-
During a DDoS attack, the target is denied access to its resources, such as a website or server, because hackers slow down the system or shut it down completely. DNS attacks, on the other hand, occur as a result of the centralized nature of the DNS, which makes it easier for hackers to hack into the connection between the website and IP address. Scam websites can be redirected to inaccessible platforms.
As a result of decentralizing all DNS entries, blockchain privacy protection eliminates such attacks, which removes hacking vulnerabilities.
Data storage that is immutable:-
Both startups and enterprises are concerned about business data theft. This article begins with the prediction that in 2023 there will be a $5 million loss due to data breaches, of which a good percentage will be the result of incorrect data storage. Blockchains work on the theory that data should be stored decentralized, but many businesses store their records on centralized platforms, which are only one point of vulnerability away from being hacked.
Data can be protected on a blockchain network by using data privacy methods, such as cryptographic signatures, within a transparent system where users are only allowed to see or use the data they have access to.
Identifying the software’s provenance:-
Software updates should be kept up-to-date, but only when they come from a reputable source. Updates from malicious sources are sometimes installed by users without realizing the consequences. Businesses are able to verify downloads, updates, and patches with software developers using blockchain data privacy’s hashing methodology.
A blockchain can also be used to store and track software update details. So that their details can be identified in case they download malicious software intended to harm the business.
Identifying the owner:-
As the digital space has become increasingly crowded and run by imitations and copies, proving ownership has become increasingly difficult, making it hard for businesses to establish who they are working with. Creating an immutable record of authenticity through a blockchain system, performing KYC through a DLT, and using cryptographic keys to prevent document plagiarism are the blockchain solutions to this issue.
The benefits of authentication and access management that come with this blockchain data privacy application for businesses can be seen through the extension of blockchain data privacy for businesses –
- Minimising data collection
- Getting rid of identity theft
- Personal information is protected in a sensitive manner
- Controlled access with multiple signatures.
As far as establishing privacy and security on blockchain is concerned, these six applications are just the tip of the iceberg. The technology is still being explored for its potential to aid businesses in protecting themselves.
In what ways can Revinfotech help secure your data using blockchain?
Our first instinct at Revinfotech when it comes to blockchain development services is to find methods that are scalable and cause minimum downtime.
In order to answer how blockchain can be used for business security in your organization, our blockchain development providers spend time understanding your business requirements and vulnerable points.
The fact that blockchain hacks also happen is not ignored throughout the product journey. The hacker community has found ways to get into blockchain systems as well, from privacy concerns in public blockchains to phishing attacks targeting private keys to weak governance and smart contract defects. As we build a blockchain platform with security in mind, we ensure that all methods used by hackers to enter the system are blocked in order for the blockchain privacy protection solution to work properly. What’s the outcome? Data-free dApps whose services have never been hacked or breached.
Are you looking for the same result for your business? Contact us to learn how we can protect your data with blockchain technology.
Frequently Asked Questions
As a result of blockchain technology, data structures are created that are intrinsically secure. This system is based on cryptography, decentralisation, and consensus principles, which ensure that transactions are trusted.
In the Blockchain network, every node (computer or other device) contains a private key and a public address. It is the public address, not the private key, that is shared with the world when a node takes part in a transaction. A random combination of letters and digits makes up this public address.
An information ledger based on tokens and blockchains would allow databases to be built on a single standard. The user would only be able to grant access to the encrypted digital ID token if they needed it, with access being restricted to one specific locat