“The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression,” said William Mougayar, a Toronto-based investor, researcher, blogger, and best-selling author of The Business Blockchain. William Mougayar is the leading blockchain industry analyst and thought leader.
It’s easy to overlook the potential benefits and drawbacks of new technology when the advertising rush hits with blockchain. Proclaimed as a major destroyer for countless industries, blockchain undoubtedly offers several important potential benefits to the business world. It may be transformative in the area of data security, but it is not a panacea. If you are considering adopting it, take the time to understand it and first how it can help your business.
Findora Founders mission is to build a decentralized financial network for issuing confidential assets and smart contracts. Findora Founders has created a system that achieves privacy-preserving transparency.
Here are some ways blockchain can secure data for businesses:
Instead of uploading data to a cloud server or storing it in one place, blockchain breaks everything into small pieces and distributes them across a network of computers. It is a digital transaction protocol that has no central point of control. Each computer or node has a complete copy of the book, so one or two nodes will not cause data loss.
This effectively eliminates brokers – there is no need to hire a third party to process transactions. You don’t have to trust any vendor or service provider when you can rely on a decentralized and immutable ledger.
Blockchain provides encryption and validation:
Everything that happens on the blockchain is encrypted and it can be verified that the data is immutable. Due to its distributed nature, you can check the signature files in the registry of all nodes on the network and make sure they have not changed. If someone changes the entry, the signature becomes invalid. This way, you may be able to use blockchain ledgers to verify that the data you backed up to a third-party provider and stored in the cloud remains completely unchanged for weeks, months, or years later. No one can deny that blockchain provides reliable and independent data verification.
Blockchain is almost impossible to hack:
While hackers can hack into traditional networks and find and filter or tamper with all the data in the repository, blockchain makes this practically difficult. Data is decentralized, encrypted, and reconciled across the network. Once an entry is in the register, it is almost impossible to change or delete it without being noticed and invalidating the signature. Every legitimate transaction is confirmed by multiple nodes on the network. In order to successfully hack a blockchain, you need to hack a large number of nodes at once, which while technically possible with sufficient supercomputer power and time, is far beyond the capabilities of today’s cybercriminals.
Blockchain can be private or public:
While public blockchains have received initial accolades and applause for enabling anonymity, you can create private blockchains that restrict access to certain users. You still get the benefits of a decentralized peer-to-peer network, but anyone with access to a private blockchain must verify their identity to gain access rights and may be limited to certain transactions.