The blockchain technology is set to revolutionise a lot of industries. In fact if we are to believe the pundits, no sector will come out untouched when the dust finally settles.
Much has been said about how the innovation will turn the financial services industry upside down. There is a reason this industry has received a lot of focus.
Banking relies heavily on records to function. In fact their entire existence relies heavily on the ability to keep secure and accurate records. This is a job the blockchain technology does exceptionally well and the reason it is already rattling the financial services industry.
One other important sector which has not received nearly as much attention is cyber security. There is no doubt that the internet will form the backbone of the future economy.
The reason much of its potential has not been unlocked lies in the fact there are still serious cyber security concerns.
The internet is penetrating the most intimate parts of our lives each day. An increasing part of our social interactions now happen online. As such privacy remains a growing concern for individuals and organisations.
Blockchain prevents data tampering and fraud due to its decentralised nature, an attribute that can be harnessed effectively for cyber defence. It is the same feature that allows bitcoin to function as a decentralised currency with no central authority to supervise.
Infiltration into your data is almost impossible in this crowd sourced verification system. Hackers would have to compromise millions of computers across the world if their attack is to succeed.
The situation is very much different now. Often, hackers just need to compromise one device usually a phone or a computer to steal money from your account. Even the highly encrypted SSL websites used by banks have been shown to be susceptible to attacks.
Successful attacks do not just result in the loss of money.
Bank accounts contain highly sensitive personal information that can cause a lot of damage if it comes into the possession of criminal elements.
Loss of customer data is undesirable to any company and many do not recover from the damage.
A Little About Blockchain Technology
The blocks are sequentially arranged in blocks where one verifies the previous one through a function called hashing. The result is an unbroken chain. The block is then distributed across the network in multiple locations.
No one has the master copy and therefore no one can tamper. Each entry is irreversible. This presents a golden opportunity for businesses to offer services more securely, transparently and with more confidence.
For customers, it is also an opportunity to have more control about how their information is accessed and used. This can be effectively done with the private keys.
What it Means
By validating applications, blockchain will usher in a new era of work. If a network is impregnable, more workers can work remotely and in the process increasing their productivity.
It is possible for instance to prevent users from making any changes in an application that could compromise security. It can also be used to verify and source and status of applications e.g. whether they are up to date. As we get deeper and deeper into IoT, this ability to prevent tampering will prove invaluable.
Blockchain will also be a good way to concretize contracts with employees, clients and third party providers on the use of data.
Trust is an essential ingredient for any business to thrive more so in the age of the internet . Cyber security is currently the biggest threat to the advancement in this sector. Blockchain has all the attributes to unlock this huge industry with trustless exchanges.