Cybersecurity is one of the biggest challenges facing small- and medium-sized companies. Today, the business environment is digital and integrated. So, hackers can access and steal tons of data with a single cyber-attack. Data breaches have far-reaching consequences, including financial losses and reputational damage. Recovery after a cyber-attack can take decades. Some companies never recover. Businesses are turning to disruptive technologies like blockchain to protect their interests. So, can blockchain improve cybersecurity for your company?
What is Blockchain?
Blockchain is a decentralized digital ledger that is securely shared across a network of computer systems. It was first introduced in 2008 to deliver Bitcoin to the world by enabling crypto storage and transfer. Since its inception, blockchain has evolved and expanded beyond the crypto world. This technology is one of the most secure forms of digital transaction, with ever-increasing use cases. One of the sectors benefiting from blockchain is cybersecurity.
Blockchain is transforming cybersecurity from system security to data protection and privacy. It also enhances confidentiality, integrity, and accountability in the digital space. Today, companies can leverage blockchain to automate processes and secure transactions. You can use blockchain-based applications such as decentralized data storage and smart contracts to elevate cyber and data security.
Blockchain Use Cases for Cybersecurity
Blockchain is robust enough to protect businesses from cyberattacks. It brings transparency, trust, and integrity into the digital space. Here are six blockchain use cases for cybersecurity:
Decentralized Storage Solutions
Businesses accumulate tons of data about their customers in centralized systems. Consolidating data in a single platform streamlines the workflow. But it also simplifies the job for hackers. This is where blockchain-based storage solutions come in handy. You can protect sensitive data using decentralized data storage. This solution allows you to store data on the blockchain and grant or revoke access to third parties using a cryptographic key. There is no single point of entry into data storage, reducing the occurrence and impact of breaches.
IoT leverages interconnected edge devices, such as routers, switches, thermostats, and doorbells. Some of these devices have weak security features, enticing for hackers. Because IoT devices are interconnected, cybercriminals only need to hack one device to access the entire system. Blockchain can help improve IoT security by decentralizing the administration of systems or devices. Each device makes security decisions without relying on the central admin or authority. This approach makes it harder for hackers to gain control of other devices and overall systems.
Securing Private Messaging
Today, more people interact via private messaging than ever before. Business is booming on social media platforms, driven by the rise of conversational commerce. Customer-business interactions on these platforms generate tons of metadata. So, they are prime targets for hackers. Today, social media and messaging companies leverage blockchain to secure user data. Companies can use blockchain to create a unified API framework to enable cross-messenger communications. Blockchain can also deliver a standard security protocol for messaging apps.
Domain Name System (DNS) is centralized and vulnerable to hacking. Cybercriminals can break into the connection between IP address and website name. They can hold the website hostage by denying owners and users access or redirecting site visitors to scam sites. Blockchain can decentralize DNS entries by storing domain information on distributed ledgers. Then, power the connection to the website name using immutable smart contracts. This approach can reduce vulnerable single entry points and the risk of cyberattacks.
Prevent Foreign Intrusion
Computer software requires users to download and install the product and periodic firmware updates and patches. These activities provide opportunities for cybercriminals to introduce malicious software to computers. Using blockchain, software providers can ensure the integrity of the downloads and verify updates and patches. It can help prevent foreign intrusion and protect against malicious codes.
Protect Data Transmission
Hackers can tap into communication channels and alter or delete data in transit. Businesses can exploit blockchain’s robust encryption feature to secure data transmission. This approach can prevent unauthorized access to data in transit, locking out malicious actors.
Blockchain is already transforming cybersecurity by decentralizing data storage and securing IoT devices, private messaging, and DNS. It can also help protect data transmission and prevent foreign intrusion. Today, small- and medium-sized companies can adopt blockchain applications such as smart contracts to secure their transactions.