Blockchain and Data Security: How to Apply in Your Business

Aug 29, 2019

The growth of cloud computing and the popularization of the internet and mobile devices are facilitating banking, shopping, fostering home office work and providing mobility for access to business systems. Despite the invaluable time and affordability that these solutions offer, there is also a growing concern about the safety of these operations.

A simple smartphone can be a gateway for hackers to break into enterprise systems and cause millionaire damage, so both investment and the development of information security solutions are always a company's top priorities.

Among the news of the last decade is the search for a solution that combines blockchain and data security. This technology, which was born as the basis of a cryptocurrency, has shown great potential for other areas. Want to know how important it can be to information security in your business? Continue reading!

What is blockchain?

You have probably seen the term blockchain related to Bitcoin cryptocurrency, because it was in this context that the technology emerged and began to be focused on other applications. Blockchain, literally translated into Portuguese, means chain of blocks, that is, as its name suggests, is a database formed by interconnected and decentralized blocks.

Unlike a centralized database, where there is an administrator certifying and validating the data, in blockchain this validation is done by the nodes of this block, which are computers spread across the web. So for any transaction to be considered valid, it must be validated by at least 51% of the chain.

How is the connection between the blocks made?

Each block generated in the blockchain carries a hash, a sequence of letters and numbers. This hash is encryption that holds the contents of the current block plus the previous one. Thus, all blocks store information from the entire chain, which makes tampering with a simple intrusion almost impossible, as every transaction must be validated by the majority, ie 50% + 1.

All changes made to a block are recorded forever, making tracking easier. This makes the blockchain in the sights of government agencies to be used in the validation and certification of documents, contracts, making technology stand as a future replacement for traditional notaries, reducing costs and bureaucracy with the intermediary's breakdown.

How does blockchain benefit information security?

Now that we have a background on what blockchain is and how it works, let's understand how it can be used for information security. We can use three terms to begin to exemplify this action:

- decentralization;
- tracking;
- high end encryption.

In a centralized database, which is currently used by companies, just one "door" is enough for the attacker to enter the server and have access to data, often without leaving a trace. With the blockchain, an attacker would have to have control of 51% of the chain nodes, meaning that they would have to break into multiple machines to validate a change. In addition, all movement would be traceable.

This means that if a hacker can break into a single machine in a company for the purpose of hijacking the data, the other computers that make up the block will act, invalidating the action. This action that blockchain provides will also be important for secure web browsing and password protection, for example.

Increasingly, companies are using data as a source for efficient management and are used as a basis for strategic decision making. Keeping this information secure is crucial to keeping the company's branded value and sensitive information secure.

It is therefore very important for IT management to see the relationship between blockchain and data security as an alternative to protecting your information.



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