Over the past few years, blockchain has emerged as an increasingly popular tool for companies and software providers who want to increase levels of security and integrity in their operations. Technology and operating systems that harness the power of blockchain can take security to a whole new level, giving businesses the opportunity to protect their data, verify the accuracy of their records, and keep a comprehensive audit trail of their documents.
If you’re still not convinced your business needs to upgrade its procedures, here are five security benefits of blockchain you need to know about.
These days, Blockchain and data security are almost synonymous. Software that’s based on blockchain is incredibly effective at ensuring data integrity. Each block in the blockchain contains a unique cryptographic hash. Even the slightest change made to the data will alter this hash, making it immediately evident that an alteration has taken place.
All parties, or ‘nodes’, in the network can see this information. So, if one person were to alter data stored on the blockchain, every other user would be able to see it. This information cannot be edited or deleted, making blockchain-based systems ideal for businesses that want to maximise transparency and accuracy in their record keeping.
Unlike traditional centralised storage systems, blockchain spreads data across all of the nodes or users in the network. This decentralisation makes it infinitely harder for hackers to bring the system down.
Centralised systems, on the other hand, create one single point of failure. And, even with the best security in place, they face a higher threat of data breaches compared to decentralised storage solutions such as blockchain.
Once data is recorded on blockchain, it can’t be altered or deleted, providing a reliable and tamper-proof record of transactions. This immutability is a key aspect of blockchain, with all transactions visible to all participants in the network. As well as making an organisation more secure and reducing the potential for fraud, this can help to foster trust within a business.
As we’ve already seen, choosing blockchain for data security can have a huge impact on both data integrity and trust within a business. The technology can also improve transparency by ensuring that all nodes in the system are able to see all of the information that’s added and all the alterations that are made. This trail of information means that any edits which are made are traceable and give the organisation a high level of accountability.
There’s a strong relationship between trust and security. When everyone in an organisation knows that records are immutable, they don’t have to worry about fraudulent transactions or be concerned that colleagues or partners are making changes without their knowledge.
Using a system that’s based on blockchain can therefore help to increase levels of trust within an organisation and help to ensure all members of the team are working openly, honestly and securely.
To learn more about the benefits of blockchain, contact us today.
Image source: Canva