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Is Blockchain the New Answer for Data Security?

Data security continues to become more and more important in society today. With the number of data attacks, phishing attempts, and hackers trying to obtain critical data, it is difficult for companies and even our government to protect themselves from these attacks. Many critics have pointed to Blockchain as being the new answer for data security, and at the same time there are many people who disagree with this idea.

Does Blockchain have the ability to become a new source of data security?

For people unfamiliar with Blockchain, it is data (which is described as being the “blocks”), and they are all connected (which is where the “chain” comes from). The benefit of Blockchain is that these blocks can store sensitive transactional data, from time stamps to dollar amounts, to who is coordinating the transactions, and blockchain can also store data that explains the difference between one block to another. The data that is stored in a Blockchain does not only need to involve transactions; it is possible to store any kind of data in a blockchain.

The distinguishing factor from each block is that they all have a different code, or “hash,” and they are all different. No block can have the same hash, as in the same way no individual can have the same fingerprint as another person.

With that said, blockchain is a very complex system, which means that it is very difficult to hack. The creation of blockchain was for digital information to be stored, recorded, and distributed. It is very difficult to edit a block, and for someone to try and hack a blockchain, they would need to go back and edit the data and change every single block on the chain before they would be able to continue. The ability for someone to recalculate each hash on the blockchain is nearly impossible, considering a hacker would need a massive amount of computing power and time to do so.

Other positives with Blockchain include the fact that this system is decentralized, as there is no central point and no entity that can control it. Another plus associated with this new form of digital technology is that each blockchain contains an encryption feature which allows the creator to encode each block in such a way that only authorized parties can access.

Blockchain also gives the user the ability to create private or public chains. With private chains, there is an increased set of security in which users must authenticate their identity to access some blocks, and, at the same time, guests can even be restricted to certain blocks.

There are many positives associated with blockchain, and, since it is an up and coming form of technology, it can only improve over time.

With that said, I believe that in the future, blockchain could become an asset to data security and could even be “the answer” that some critics are calling for.