The pandemic has paved the way for a storm of cyberattacks. According to the FBI’s annual Internet Crime Report, Overall cybercrime-related losses, through the USA, exceeded $4.2 billion in 2020. The three most commonly victimizing techniques include phishing, extortion, and non_payment scams. As a need of the hour, companies were urged to invest in cyber-defense; That’s where blockchain security comes in.
What is blockchain?
In simplest terms, blockchain is a chain or a series of bits of encrypted and decentralized data called blocks. each block represents a transaction and is recorded with an immutable cryptographic signature called the hash.
Whenever a transaction is requested, it is broadcasted via network i. e. send to every participant (representing the nodes of a network), which is then validated through cryptography and becomes a block. this block is then added to the existing blockchain and the transaction gets completed.
Are we safe now?
Let’s not forget that blockchain solutions are not “once and for all”. They are breakable too. Hackers and spoofing parties can manipulate blockchain vulnerabilities to their advantage. Thus, finding a reliable blockchain software development provider is vital to your cyber-security. Anyways, let’s go through the top five applications of blockchain in cyber security.
1- Payment processing and money transfers
This is maybe the reason for being grateful for its existence. P2P network is there as a proof of transaction and every transaction is recorded as immutable plus stamped hence, no chances of swindling. plus, like conventional banking there is no holiday or pause; transactions take place from anywhere and anytime.
2- Monitoring Supply Chain and logistics
The utility of blockchains in business is indisputable. By removing paper-based formalities, businesses are able to pinpoint and troubleshoot inefficiencies within their supply chains in a very quick manner, as well as gather and process real-time information. Further, blockchain would allow businesses, to view how products from a quality-control perspective as they traveled the logistics chain, right from their place of origin to the retailer.
3- Immutable data backup
Cloud Storage is although the best and most trusted candidate for data storage, Blockchains can be an effective backup option too, especially if clouds get infected with hacking malware or any infrastructure problem
4- Tax regulation
Transparency and immutability are two salient features of blockchain. We all know how crucially important they are for tax authorities and financial regulatory agencies. For example, companies can use blockchain as a means to record their transactions and show lawmakers that they’re abiding by local, and/or federal laws. More importantly, these sales act as a clear record for the tax authorities to validate the status of profitable corporations as taxpayers.
5- Identity management
Did you know that more than 1.1 billion people worldwide don’t have their identity proven and recorded? In this digital era, it’s disastrous because businesses work upon the ” know-your-customers” model and in the virtual world, frauds are so prevalent.
Blockchain standardizes the identification information system, plus can store it securely. This system then could be accessed by selected institutions and could be validated in record time. This use finds its way to all industries; from healthcare to education to travel.
The extent to which blockchain will revolutionize the digital world is yet to be seen. But the potential it holds is undeniable. The key to solving complex economic issues and increasing security concerns might already be here.