In 2022, the cost of improving network security is estimated to be $172 million. This is not surprising, as more and more businesses are realizing the importance of cybersecurity to prevent critical information leaks or cyberattacks. Cybercriminal attacks cost companies an average of $4.24 million.
Read the article to find out how blockchain affects the improvement of blockchain cybersecurity and what are the benefits of using the technology to prevent cybercrime.
What is blockchain?
Blockchain is a cryptography-based distributed data storage technology that builds a chain of blocks containing information about the existing and past block. All members of the blockchain have equal rights and can track changes in the data on the blockchain. Besides, no person can change the information that has already been added.
Companies choose blockchain for cybersecurity due to its main and most important characteristics: decentralization, transparency, immutability. Let’s take a closer look at what each of these characteristics means for security.
Decentralization means the absence of outside interference and control in the processes, which promotes trust between all participants.
Transparency is achieved due to the fact that every member of the network sees information about changes in the blockchain.
Immutability ensures that no one can ever replace the data that has already been added to the blockchain without the consent of more than 50% of the network participants.
What is the advantage of using blockchain technology for data protection
Preservation of user privacy through the use of cryptography and anonymity of the blockchain, since no one can track who exactly made a transaction or other operation.
1. Transparency of information and preservation of the history of all operations for quick and easy tracking of changes in real time.
2. Encrypted data transmission in corporate organizations, which helps prevent information leakage.
3. Avoiding malicious DDoS attacks due to blockchain characteristics such as immutability and the use of cryptography.
4. Reducing the number of phishing attacks due to the confidentiality of user data. It is quite difficult for hackers to crack the keys of network participants and gain access to their data.
Blockchain technology is the basis of cybersecurity
Such features of the blockchain as transparency, immutability, anonymity, the use of smart contracts for automated tracking of the fulfillment of conditions by the parties make it a good solution for ensuring high cybersecurity.
We at RVA Fintech Solutions, an IT outsourcing company, always pay great attention to blockchain security and compliance with all cybersecurity standards. For this purpose, even after the product release, we update the blockchain smart contract, monitor its performance and improve its functionality.