Without a shadow of doubt, Blockchain has become one of the most critical technologies in recent times. If we take Transparency Market Research into account, the blockchain market will be worth US$20 billion by the end of 2020.
Through Blockchain, financial institutions can reduce their operational costs to a certain extent. Similarly, the role of Blockchain in the future will come in handy as its business value-add will increase up to US$ 176 billion within the next five years or so.
The story does not end here, as Blockchain has so much to offer. Yes, you have guessed it correctly. You can use the said technology in different areas like agriculture, banking, health, information technology, supply chain, etc.
However, you cannot undermine the value of Blockchain it provides when it comes to securing organizational and public data both. If you are willing to adopt this innovative technology, you should thoroughly analyze its significant upsides and downsides. Thus, you can reap the rewards of Blockchain applications successfully.
This post will highlight its major advantages alongside its limitations that help you use Blockchain to correctly secure users’ data.
Without further ado, let’s start!
Offers Validation along with Encryption
The best thing about using Blockchain is its impressive encryption feature that encrypts everything on Blockchain. This way, it becomes next to impossible to temper or alters the data available on it. Interestingly, you can verify file signatures to ensure that they have not been changed on all the nodes across all the ledgers in the network.
Furthermore, you can use smart contracts in Blockchain that intimates certain validations when specific conditions are met successfully. In case someone does alter the data, all the ledgers available on all the nodes validate that particular change in the network.
Provides Secure Data Storage
There is no denying data security is one of the most valuable features of the Blockchain. Therefore, companies can opt Blockchain for securing their massive data appropriately.
Hence, hackers, snoopers, and other cyber goons cannot access the data stored on the Blockchain in any way. Surprisingly, Blockchain is used in distributed storage software, and the data available on it is shared via a network of people. Thus, organizations can manage their data without any trouble. Likewise, public services can also take huge benefits from Blockchain to secure available public data accordingly.
Nearly Impossible to Hack
It is unbelievably harder to hack blockchain since the data is encrypted, decentralized and authenticated by the entire network. As soon as you have stored the information on the ledger, cybercriminals cannot make changes to the data as they will need to invalidate the signature first.
Different nodes on the network authenticate every legitimate transaction. Therefore, hackers will have to hack most of the nodes simultaneously that help them decrypt the Blockchain. This whole activity needs extraordinary command and skills and luckily modern day hackers do not possess such traits at all.
On the other hand, hackers target users’ devices 2200+ times daily. So, you are bound to use Blockchain when it comes to protecting users’ data from hacking, data theft, phishing attacks and other security hassles.
Provides New Opportunities to Financial Institutions
Financial institutions like banks can apply Blockchain’s concept to decrease the probability of financial fraud to a certain extent. It means they can enhance their users’ financial information instantly. With Blockchain’s help, banks can easily share, view, and store their customers digital information.
Blockchain uses cryptographic encryption that secures every transaction, making it easier for banks to improve their overall security levels considerably.
Few Limitations to Consider
Despite making waves for all the rights reasons, Blockchain is still a new technology that will evolve with time. Therefore, it is the high time for organizations and other stakeholders to consider different factors before applying Blockchain.
You can consider these factors in the shape of complexity, high energy consumption, etc. As far as Blockchain’s complex nature goes, different companies, including banks, have adopted Blockchain to some extent.
They have used a hybrid approach rather than going fully centralized or decentralized. As a result, complexity would be increased to unimaginable heights. Similarly, Blockchain is famous for its high energy consumption.
For instance, Bitcoin Core, an application of the Blockchain, requires 200 GB storage space approx in each node, a part of the Blockchain network.Aside from that, it needs 5 GB upload and 500 MB download daily. That said, Blockchain importance increases with each passing day because it has already started contributing to different domains other than data security.
Final Thoughts
Blockchain can play a major role to secure public and personal data both. However, it depends on companies how they will implement this excellent anonymous technology within their premises.
Besides, organizations can use Blockchain alongside artificial intelligence to improve its performance, enabling them to secure their users’ data to a new plane.