Note: This is a guest post written by Katharina Campbell – Blockchain and cyber security measures are being adopted across a range of industries, such as healthcare and banking. These safeguards rely on blockchain’s decentralized and secure network structure which makes it difficult to hack into. Blockchain can offer solutions to current cyber issues, but it also carries risks. These vulnerabilities could compromise the integrity and confidentiality of information.
Decentralization
Decentralization is the practice of shifting decision making and control from a central organization to an array of users. This provides individuals with the autonomy to make their own decisions without external interference or oversight.
Decentralized systems work better than their centralized counterparts, providing for more effective and efficient data storage.
Blockchain makes it simpler for companies to store and share information, as well as guarantees data integrity and transparency. This provides companies with increased assurance about the security of their data.
Confidentiality
Confidentiality is a critical element of cyber security and blockchain, as sensitive information should be safeguarded against unauthorized access and dissemination.
Confidential information refers to bank details, client lists, passwords and other personal data. Organizations need to establish confidentiality policies, non-disclosure agreements (NDA) and procedures on how confidential data should be handled.
Cryptographic encryption, user IDs and passwords are some of the most widely-used methods to maintain confidentiality. Authentication and key management are also crucial elements in maintaining this level of protection.
Privacy is another crucial aspect of confidentiality, ensuring sensitive information does not leave the control of those who hold it. When formulating privacy policies, consider which types of data need protection and what access rights should be granted.
Transparency
Transparency is a cornerstone of cyber security and business ethics. Businesses must be open and truthful with their customers, employees, and other stakeholders in order to maintain trust.
Blockchain provides transparency, allowing users to verify the legitimacy of transactions and make payments without the assistance of third-party financial institutions. This can significantly reduce the risks of security breaches that could lead to identity theft and fraudulence.
As a result, many industries are turning towards blockchain technology for a safer and more secure method of conducting business transactions. This can include cybersecurity, logistics and supply chains.
However, it’s essential to recognize that transparency can come with its own set of risks and drawbacks. It is therefore crucial to take these factors into account when deciding whether or not to implement more open practices.
Auditability
Auditability is a fundamental element of cyber security. Companies that maintain an accurate audit trail are much better equipped to detect any internal fraud or process breakdowns within their organization.
An accurate audit trail includes date and time-stamped events, such as the user ID, file or resource accessed, program that initiated it and its outcome. This information can be used to pinpoint precisely when a transaction occurred and in what location.
In the blockchain world, this is an essential function as it helps prevent hackers from accessing a network. Disrupting node communications, for example, could compromise a chain and potentially expose sensitive information.
