Blockchain technology is disrupting industries with its robust applications and the ability to streamline complex operations. Be it's automotive, FinTech, or consumer industry, this decentralized technology is a catalyst in driving growth.
The most significant advantage of leveraging blockchain technology is higher security and transparency among individuals and companies using services online. In addition, compared to traditional technologies, blockchain technology lets business owners scale up their security implementations much faster. Whether it's migrating legacy systems or developing cryptocurrency exchange systems, this advancement ensures end-to-end security.
In 2021 and beyond, where customers are more concerned for their online security and personal data management, blockchain plays a winning role. However, before diving into the security benefits of blockchain, it's essential to understand why blockchain is safe and superior to many traditional technologies.
Why is blockchain so secure?
Blockchain technology relies on cryptography to attain distributed data security. The hash of each block is formed containing the data along with the hash of the previous block.
As each block contains the previous block's hash, the security becomes intact, and no chance of data alteration is left.
The distributed blocks are organized in order and formed together to execute the transactions and data transfer faster. Moreover, as all the blocks are time stamped and signed by their creators, it becomes impossible for anyone to break into this system and alter the data.
On this note, let's explore how blockchain technology boosts your company's cybersecurity and enables you to run your business seamlessly.
Using blockchain technology, companies can establish their distributed databases, and they will not have a centralized point of failure. With this technology, it becomes easier for companies to create multiple replicas of the data and distribute it over a sizable transparent network. This distributed architecture for data and financial transaction makes every process more transparent and robust.
Compared to a traditional database, blockchain-based architectures are highly scalable, and it gives an edge to the company when it comes to growing business faster. Whether you run a cryptocurrency exchange or own an insurance firm, blockchain streamlines complex data architecture with top-notch security.
Prevents data theft
The most significant aspect of blockchain that improves overall cybersecurity is the real-time protection of data and transactions. As it's based on distributed ledger technology, it becomes impossible for intruders to hack or manipulate the data by penetrating the data blocks. In addition, as each block contains the hash record of the previous block, it becomes unrealistic for hackers to make changes in hundreds of blocks at the same time.
This intricate data structure gives blockchain technology the capacity to be the most secure method of storing and distributing data online that has become inevitable. That’s why companies have begun using the technology in various sectors to deter fraud and improve data protection.
Encryption and validation
This distributed ledger platform ensures that all data present among the blocks are encrypted, and only legitimate data owners can make the necessary changes. As users can store the cryptographic signatures with their data on the blockchain, the validation becomes more robust. As the complete ecosystem is decentralized, anyone can cross-check the signatures over all the network nodes.
With such strong encryption and validation, companies can gain the trust of their customers faster as it shows how much you care for them and their personal information. In addition, this technology is a reliable way to improve overall cybersecurity across all your business touchpoints.
Blockchain is more reliable compared to other technologies and platforms because of its consensus algorithms. With the help of consensus algorithms, the entire network can make intelligent decisions for validating and rejecting the changes made in the nodes.
Because of the consensus algorithm, the decision-making ability of the group of nodes becomes more accurate and reliable. Furthermore, as millions of nodes validate transactions, consensus algorithms ensure no calculation or human error. In simple terms, consensus algorithms are like real-time voting systems that approve or reject the changes made in the network.
Every algorithm has its decision-making mechanism, which makes the complete blockchain network highly trustworthy. When multiple algorithms are checking the same transaction, there is no chance for a falsified data entity.
Secure your business with blockchain now
You can enhance your company's cybersecurity using blockchain technology and ensure the utmost security of business-sensitive data. In 2021 and beyond, where customers seek more simplified security solutions, blockchain is the best way to transform the business.
Seven Bits is a leading digital transformation company that offers you complete blockchain development services to meet your every business goal. With the support of more than seven public and private blockchain frameworks, we have covered your every business need.
Get ahead of the curve and thrive in your industry by implementing robust cybersecurity for your business. Contact our blockchain experts at [email protected] to explore more.