Blockchain technology has created a sensation in the internet space. Let’s get to learn more about the concept and terminologies.
What Is Blockchain Technology?
Blockchain technology came into existence in 2008 and with the introduction of bitcoins, it became popular worldwide. According to Wikipedia, “blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography”.
This technology has created a sensation in the internet space which was originally invented by Satoshi Nakamoto.
Here are some advantages of using Blockchain technology in Cybersecurity.
Blockchain Technology and Cybersecurity
- Trading in cryptocurrencies does involve a high degree of risk. To solve these major concerns many tech communities like Blockchain-hero.com is spending sleepless nights to find other potential uses and solutions for blockchain technology. The best part of this technology is that it eliminates the need for a third party to control the database which is shared among all the users. This distributed yet secured system initiated a new trend on the internet with lots of future scopes.
- Blockchain technology can offer important cybersecurity benefits, such as reducing cyberattacks, and it has recently created a lot of hype as a panacea for all the current challenges related to information security.
- Blockchain can provide a strong and effective solution for securing networked ledgers. However, it does not guarantee the security of individual participants or eliminates the need to follow other cybersecurity best practices. Blockchain application depends on external data or other at-risk resources; thus, they cannot be a panacea. The blockchain implementation code and the environments in which the blockchain technology run must be checked for cyber vulnerabilities.
- Blockchain technology provides stronger, transactional security than traditional, centralized computing services for secured networked transaction ledgers. For example, say I use distributed ledger technology (DLT), an intrinsic blockchain feature while creating my blockchain-based application. DLT increases cyber resiliency because it creates a situation where there is no single point of contact. In the DLT, an attack on one or a small number of participants does not affect other nodes. Thus, DLT helps maintain transparency and availability and continues the transactions. Another advantage of DLT is that endpoint vulnerability are addressed.
- Blockchain technology depends on communication across a network of nodes. Disrupting node communications or disseminating or accepting false information to confirm fake transactions may compromise the network. Hence, communication across the network of nodes is very important if deploying blockchain for security reasons.
- Solution architects should consider various risk management strategies when designing any blockchain application, as with any new technology. They should conduct thorough, upfront due diligence and negotiate contractual protections with other participants apart from implementing continuous monitoring for security incidents, as well as consider obtaining appropriate cyber insurance, if available.
- Coding bugs often cause vulnerabilities that are continuously exploited by hackers in blockchain-based smart contract projects. Experienced developers and continuous project audits can help avoid these types of errors.
- External data sources fall outside of a blockchain application’s network consensus validation mechanism. Blockchain networks and stakeholders in end-to-end transactions must take steps to monitor and ensure data reliability because these elements may be more susceptible to tampering or other malicious actions. Hackers may be able to compromise a project at this layer.
- When discussing the use of blockchain technology for cybersecurity, it is important to understand that blockchain applications are like any other computer system. They can be vulnerable to software coding errors, which can introduce cyber risk.
- Blockchain applications also run on general-purpose operating systems and platforms. These can be subject to known hardware and software vulnerabilities. Therefore, when deploying blockchain as a cybersecurity measure, organizations should treat these environments like their other critical business computing resources. They should follow generally accepted cybersecurity practices on blockchain applications. Identifying and managing known vulnerabilities is a core element of any reasonable cybersecurity program.
- Users interact with the system in blockchain applications, which can often be a gateway for cyberattacks. The best example of this is cryptocurrency theft. These involve exploiting vulnerabilities in connected systems. Thus, end-user vulnerabilities, which enable attackers to infiltrate and compromise even the most secure private blockchains by impersonating authorized users, must be addressed.
- Blockchain has intrinsic features of immutability, transparency, and DLT, which can help solve current cybersecurity issues. These blockchain features help manage the confidentiality, integrity, and availability of information. However, blockchain applications do not work in a silo; they use operating systems like other applications. They also work in a layering system with frontend application programming interfaces (APIs) and backend database systems. It is necessary to consider the vulnerabilities at all these layers while planning to deploy blockchain for security reasons.