Over the past few years, almost every IT professional has been asked about blockchain security. This buzzword is well-known and it’s easy to see why. Cybersecurity attacks are increasing at an alarming rate and people want to ensure that they protect their valuable assets.
Blockchain security as a concept is still in its infancy. There is still much to be done before corporations can trust the blockchain to protect their data. The fundamentals of blockchain, such as cryptography and distributed networks, are worth a close look. It is helpful to know the basics of blockchain technology and how it might be used to create immutable and tamper-proof records. But is it secure?
What is blockchain?
Blockchain technology is fundamentally a brand-new way to use cryptography in order to facilitate transactions. Blockchain technology is fundamentally about decentralization. Instead of having a central administrator in one place, it is distributed ledger technology (DLT). Data is organized into blocks. Each block contains one or more transactions. Each block links to the previous block, making the entire system tamper-proof in theory.
Although initially used as a financial tool, the blockchain has proven its potential for security. People all over the globe are currently exploring how blockchain could be used to secure public and private endeavors.
Blockchain in Action: The Process Works
Most blockchain technologists will need to know two components: mining and encryption.
Let’s begin with encryption. Hashing is the heart of blockchain encryption. Hashing is a process that takes an input string, which can be of any length, and runs it through a hashing algorithm. On the other hand, you will get output of a fixed length of 256 bits. Hashing is fast and deterministic, meaning it always returns the same result for any input. These are two critical factors when it comes to security. A hash is a type of advanced password. Providing the password is kept safe, the data will be protected.
Next we have mining, which is the verification process. All over the globe, decentralized computer networks work together to process transaction blocks and verify that they are valid. These servers receive new coins as a reward for their participation in the verification process.
Security and immutability
IT professionals worry that sensitive data and records could be altered without their authorization. This is a perennial concern. These concerns are theoretically unfounded due to the integrity of the mining and encryption processes. Blockchain technology would make it impossible to alter or delete transactions once they’re confirmed in the blockchain system. This will remain theoretical at this point, as blockchain technology is still in its infancy. Blockchain can’t be used for IT security systems that are critical to a company’s business.
As a starting point, let’s use blockchain to think about ways we can ensure that company records are accurate. This is where a major benefit can be realized: Changing one’s identification process could make a huge difference. You can, for example, make it so that only certain users have access to change records, while others are allowed routine access.
You might also think about how to train your staff on the fundamentals and integrity of records management and data security. For example, training sessions could be held where every member of your IT staff can get the basics and ask questions as needed.
Beyond the Blockchain: IT Security Alternatives Companies Can Use Now
We have now established that blockchain security is not only intriguing from a security perspective, but it also has a lot of work ahead before companies can rely on it. There are many things companies can do to increase security right now.
They can also do a better job of reducing the risk from inactive users. There is always turnover in any company. If you don’t pay close attention to who has what access, you are at serious risk. Security incidents can be significantly reduced by paying attention to old user accounts.
You can then increase your compliance by making sure that security gaps are identified, monitored, and promptly corrected. Many IT departments lack the staff to perform adequate compliance monitoring by themselves. They should consider hiring a third-party service. Contracting third-party security services can help your team evaluate upcoming security technologies such as blockchain and AI.
Blockchain as a security tool may not yet be fully developed. However, that doesn’t necessarily mean it won’t be.
