How Blockchain Technology Brings a Leap in Security & Privacy
Ever since Blockchain technology forayed into the business arena, the unique selling points of this innovation have always been security and privacy. By cutting out the role of intermediaries and central authorities in transactions, the technology has transformed the way organizations conduct their activities. Even though cynics have raised questions about the promise of Blockchain, this is how the innovation marks the start of a new era in security and privacy.
Protection of Financial Information
From credit card fraud, identity theft to the hacking of banks’ databases, the number of times financial institutions have come under the attack of malicious attackers is too many to count. By storing financial data on the Blockchain and limiting its access to specific parties, users can take back their right to data protection and not have to worry about the implications of having this information public in the domain.
User Privacy on Social Media Platforms
The privacy mechanisms of several social media platforms have come continuously under the public’s scrutiny as they have been accused of selling users’ information to marketing agencies and even political campaigners in some cases. Another critical issue with social media is the presence of fake profiles and identity theft all of which can be quickly addressed by Blockchain. The immutability of this technology means that it can streamline identity verification processes as the data within the Blockchain is verifiable and consensus-driven.
Prevention of Data Tampering
The digital signature in Blockchain or a ‘hash’ as it is called, is stored either privately or publicly within the distributed ledger, the immutability of this ledger means that any changes made to it are firstly challenging to create and instantly detected even if such a case emerges. This feature of the innovation averts complete blocks from undergoing any modifications. The principal goal behind this process is to avoid data tampering and ensure that all information is secured transparently. The immutability of Blockchain fundamentally redefines security and privacy in a plethora of industries from legal services to insurance.
Smart Contract Security
By using a smart contract, two parties can initiate the exchange of money, real estate, stocks or any tangible asset. The presence of these contracts enhances the security of parties owing to its self-executing nature which essentially creates a fair environment. Apart from this aspect, Blockchain start-ups are now seeking to develop privacy-preserving smart contracts where inputs are hidden, and a trusted execution environment is created. Such mechanisms support data encryption and only allow users to decrypt information. This makes the program completely invisible to external users and creates a barrier between any third parties who may try to access it.
Launching a Privacy and Security Revolution with Blockchain
Like any other innovation, Blockchain does have its limitations and skeptics. Nonetheless, it is important to highlight that this technology can resolve several current privacy and security issues which plague many industries. Blockchain solutions present users with the prospect to safeguard their identities online and protect personal information.