Will Blockchain Technology Lessen the Effect of Information Breach?

Around the globe, we are increasingly trusting our information with companies and institutions for them to provide us with services. This information can range from medical records to the information on your Facebook account. Unfortunately, this information is usually not kept safe enough and is vulnerable to attack, especially in hospitals. In such cases, it’s not just private information at stake, but people’s lives as well. Blockchain technology is the solution.

All kinds of valuable data can be stolen. Ranging from addresses, medical records, bank details, just to name a few. In the wrong hands, they can be used to commit fraud or even blackmail. According to Entrepreneur, there are 4,000 cyber-attacks a day, and the number is increasing, especially since 2016. And according to PCMag, more data was leaked in the first half of 2016 than the whole of 2017.

It’s also supposedly a bigger issue than most people realize. Data leaks have been occurring for a long time, and not all companies are required by law to declare them. However, in recent years, after incidents like WannaCry and Cambridge Analytica, the public is starting to take an interest. With pressure growing, companies and institutions need to make a change

So, can blockchain technology stop this?

The short and easy answer to that question is yes. The blockchain is the safest form of information keeping and is almost impossible to hack.

Decentralization is the key to security

A blockchain is a network of information, in a sense, like the Internet. The major difference is that unlike most networks which have a center point, like a server but, blockchains is decentralized exchange platform. In fact, they have been designed specifically without a center point to increase security.

If a network has a center, hackers can attack this point, and they have everything. All information is at their disposal. As there is no center point to a blockchain, this issue doesn’t exist.

51% or majority attack

To hack a blockchain you would need to have at least 51% control of it. This is almost impossible to do.  A hacker would need an extremely powerful computer or convince everyone else on the blockchain to join them. Further to the point, blockchains use cryptography to keep information secure, which adds an additional layer of difficulty to hackers.

Information shared safer

With blockchain technology, only people who operate within the blockchain can access information. For example, in healthcare, your information could be freely shared between your GP and hospital. People outside the blockchain cannot access any information. This is because with blockchain technology all transfers are direct, with no third-party involvement.

Additionally, it should be noted that blockchains can be either public or private. While many companies will seek to create a private blockchain, public blockchains can still boost security. With a public blockchain, access can be restricted for specific users for certain things. This may work better for some companies and institutions who interact with clients.

From smart contracts to secret contracts

Smart contracts are one of the most innovative uses of blockchain technology. They allow participants to set up an arrangement between themselves. Once the conditions of the agreement are met a transaction can take place. This ensures that people can only get hold of information if they have a right to it.

Secret contracts are something we may see in the future, currently in development by the MIT. They propose the creation of a digital contract similar to the smart contract where the participants can compute data without ever seeing it. This could potentially add an additional layer of security to blockchain technology.

A standardized way to tackle hackers

As it currently stands, many different companies and institutions are using different methods to support their databases. This means that when a hacker leaks information, it can be done in a variety of ways. By adopting blockchain technology, blockchain specialists can be deployed to investigate what happened.

Additionally, all transactions of information can be traced back to where they came from. All movements of information are kept within a distributed ledger, and so everyone will be aware of who stole information. This shortens the time required to find who leaked the information and stopped it.

Companies already using blockchain to protect customer data

There are already some companies that are utilizing blockchain technology to prevent leaks.

  • Healthureum– This company plans to revolutionize the healthcare industry by creating a token people can use to pay for medical purposes. They claim users will own their data, have real-time access, and it can be shared with a doctor or physician.
  • Oasis Labs– This company is working on building a privacy-first cloud computing platform on the blockchain. Once built, they will be able to support applications on top of their platform with a focus on privacy.
  • Acronis– This company is using blockchain technology to act as a storage backup for businesses of all sizes. It utilizes blockchain technology specifically for the authentication process.

It is still early days for these companies, which makes their tokens ripe for crypto leverage trading. An ideal way to do that would be by taking advantage of BitMex Signals. Those that are interested in this field of blockchain technology and cryptocurrency should watch out for new ICOs.

Conclusion

Blockchain technology benefits some industries and is likely to result in the demise of other forms of database. Numerous attacks on our information have led companies and organizations realize that they need to invest in better security measures.

So, here’s the long answer to the question above: yes, blockchain technology can lessen the effect of information leaks, and in some cases, halt them all together. Blockchain technology, it appears, is the glue that can seal up any leakages of information from companies.

Without proper security measures put in place, databases can become a major threat to companies. By implementing different blockchains in different organizations, information will be safer. Organizations with sensitive information should invest time in researching how blockchain technology can offer them safety.

News Reporter
Stevan Mcgrath, is a Bitcoin and cryptocurrency enthusiast, passionate about the potential these tools and blockchain technology bring to the world and writes consistently for CoinReview. He has been following the development of blockchain for several years. To know his work and more details you can follow him on Twitter, Linkedin, Facebook.