It can be argued that blockchain is one of the most important innovations of our age. What many people don’t realize is that this technology extends well beyond just cryptocurrencies. This new system has plenty of potentials to solve problems in other systems, especially stuff involving security and accountability, such as supply chain management, escrow services, and legal contracts.
“Blockchain really is the future and in more ways than most people can imagine,” says Adam Wakefield, a technology writer at Australian Writings.
At the very heart of it, blockchain is a decentralized ledger that makes it possible to have secure transactions that are more efficient and frictionless. The ledger itself is practically immutable due to the verification process contained in every block that contains the blockchain. You can’t change a block or tamper with it without having to tamper with every other block in the blockchain, which is basically impossible.
Even so, there are still plenty of other applications where blockchain has plenty of potentials. One particular area where this new technology could be very helpful is cybersecurity. This article will look at some of the potential applications of blockchain in the area of cybersecurity.
Protection against DDoS Attacks
DDoS stands for Distributed Denial of Service and this is one of the most pestilent attacks facing many networks in the modern age. Basically, an online service is overloaded with traffic, causing it to slow down and deny resources to the users who are legitimate.
Hackers manage to launch a DDoS attack using something called a botnet, which is basically a massive network of computers that have been previously infiltrated and attacked by a virus. It is one of the oldest known ways to shut down your competitor. Even today, it cost businesses millions of dollars in lost revenue.
DDoS attacks can be fend in a variety of ways. You could blacklist suspected IPs and blacklist them, or employ DDoS protection services from specialized providers that take on the malicious traffic on your behalf.
Blockchain brings yet another way to fight such attacks. You can rent unused bandwidth in the blockchain network to absorb the attack and keep your network online.
Protection Against Identity Theft
Over the past 6 years, identity theft has cost billions, involving theft of things like credit cards, government benefits, employment-related documents, and tax reports.
One way blockchain can help is through decentralized ID, also known as DID. This is a security management platform based on the blockchain. It stores your verifiable identity in a blockchain network. When you create an account online, DID only allows you to access your account through your device and the app. All your transactions and activities will be recorded on the ledger, making everything transparent and secure.
Protection Against Fraud
Here we see the application of the wonderful smart contract. Fraud comes in many ways where contracts are involved. The chargeback fraud, for example, occurs when fraudulent shoppers claim to have not received goods after their purchase. This is a rising crime that costs businesses billions of dollars, mostly because merchants depend on centralized systems like court systems and payment gateways.
Rather than wait on a central authority to solve their issues, merchants can use smart contracts, which moderate transactions and moderate them based on programmed agreements in the blockchain environment.
One of the things you don’t need to do in a distributed ledger is to verify the authenticity of the source of a piece of information. The system is transparent enough that that is rendered moot.
In a blockchain, you don’t need public key infrastructure, which is what we currently use. You use keyless signature infrastructure instead. It automates the way data is verified and revoked using a hashing algorithm. It basically solves all of the problems that face public key infrastructures.
Improved Privacy in Messaging
You messaging service isn’t as secure as it should be, but it could be made more secure. Even public apps like WhatsApp aren’t very secure. Also, messaging apps require their users to surrender personal information in order to use the software. They are therefore entrusting their privacy to a third party.
With blockchain, the messages can be securely stored on a public ledger so no third party ever has to own them.
Improved Private Networks
Blockchain allows you to create both public networks and private ones that only allow members to interact with. You will still get the benefits of a decentralized network and peer-to-peer transactions, but it will be private and can be used for in-house businesses for companies without having to rely on a third-party provider.
No need for Passwords
Even with passwords, the infrastructure is centralized, which makes it weak because all of the data is stored in a central repository. With a decentralized network, all members of the network, own and control their own access, rather than giving it up to a third party.
Of course, this is the most popular application of blockchain technology. With currency, one of the main weaknesses is a central authority, which makes for many potential problems. However, with the blockchain, the system itself verifies every transaction and makes sure no monetary fraud occurs.
The future is bright for blockchain. With more minds tackling the issue and finding new applications for the technology, the sky is the limit for this marvel of the 21st century.
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