You might’ve heard a lot about cryptocurrency and blockchain and still be unsure exactly how it all works. It’s worth exploring exactly how blockchain works and is – because so many businesses are now using blockchain to keep their businesses secure. We can now see blockchain in supply chain, which is a great example.
So how can blockchain keep information secure?
Revamping security
One of the most important things to know about blockchain is that it brings all processes and elementary into a single network. What this means is that people who need to see data and information will see it all in one place – transparency is critical.
Since blockchain tech uses a public ledger, all the information is guaranteed to be accurate. All of the data is checked before it is encrypted.
Hack-proof
Cybercrime is a big issue; even the smallest of companies are at risk of being hacked and going through a data breach. A data breach can be catastrophic and prevent your company from moving forward.
Is blockchain the answer? Maybe.
Traditional networks have one place to store all the data, which are easily hacked, stolen, and corrupted. Blockchain doesn’t work that way; data is stored remotely, making it almost impossible for hackers to access it.
Private and Public
Blockchain can use the same technology for private and public, although it is most often considered a public network. The private network is highly-valuable because you can limit the users with ana access.
The most significant difference between the public and private networks is that you can see what other users are doing via the public network. However, with a private network, unauthorized access is restricted to only those who need to see it.
Decentralized
While many businesses are used to cloud storage systems, blockchain works on a different model. A blockchain will break everything into smaller chunks of information, and those are distributed across the entire blockchain network.
Each computer in the blockchain acts as a digital ledger and is known as a node of the network; this cuts down significantly on the intermediaries. Rather than place trust and time in third parties, you can use a distributed ledger.
Encryption
Every piece of data on the blockchain network has been encrypted, so you know for sure that the network is not altered at all. When using public ledger technology, you can check the file signature and verify that no changes have been made.
As an added layer, if a significant change is attempted, it will become invalid. This means that by using blockchain technology, you will be able to see if data has changed, when and by who.
Blockchain is quickly becoming one of the most valuable ways that businesses can ensure that their networks are unhackable and futureproofed too. As blockchain becomes more popular, it is likely that more companies will use the infrastructure.
To see just how integral blockchain is becoming, this is a great intro and offers up plenty of information: What the Sceptics Don’t Know About Blockchain.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
