The pandemic has unleashed a storm of cyberattacks. According to the FBI’s annual Internet Crime Report, cybercrime-related losses exceeded $4.2 billion in 2020. Phishing, non-payment scams, and extortion were three leading types of crimes reported by victims.
Unprepared for waves of online threats, many companies surged to invest in technology to strengthen their cyber defenses. That’s where blockchain-based solutions fit in. Blockchain software development initiatives can be launched in any sector or industry – from healthcare to agriculture and education. So let’s take a closer look at the role of blockchain in cybersecurity.
The fundamentals of blockchain in cybersecurity
Blockchain development services stand on decentralization, cryptography, and consensus of participants, which enhance transparency and trust in transactions. The data is stored in the blocks, and each block is linked to the previous one, which reduces the possibility of altering the data. Beyond that, all transactions should be validated by the majority of users within the network.
Let’s not forget that blockchain solutions are not unbreakable, and not all data is suitable for storing in a blockchain. Hackers and fraudsters can use blockchain vulnerabilities to their advantage. Thus, finding a reliable blockchain software development provider is vital to help you develop a secure solution, correctly implement it into your business processes, and minimize potential security risks.
Top five possible blockchain applications in cybersecurity
Blockchain can be utilized in many use cases. Its consensus of participants and cryptography unveils blockchain’s potential to be implemented as a cybersecurity tool. Here are key potential blockchain use cases for cybersecurity:
Internet of Things security
Internet of things (IoT) devices are crossing over into mainstream business use. The number of connected devices globally is projected to increase from 8.74 billion in 2020 to 25.4 billion in 2030.
However, with the widespread adoption of IoT devices, hackers are increasingly exploiting their weaknesses to break into companies’ systems. According to Symantec, connected devices experience an average of 5,200 attacks per month.
Blockchain’s decentralized system infrastructure can be used for protection. By decentralizing administration, devices will make security decisions without relying on central admin or authority. In such a case, when detecting a node with abnormal activity or suspicious behavior, it will be shut down.
Data storage and breach identification solution
Organizations have a massive amount of sensitive information from different sources. But here’s the problem many businesses often store this data in one place. So if cybercriminals find a loophole or vulnerability point in the security system, they get access to all the data, including information about customers and business financial records.
Blockchain-enhanced storage secures confidential digital information and assets by providing decentralized storage. Thus, it becomes more challenging and even impossible for hackers to access the data.
Moreover, blockchain can serve as an intrusion detection system. Once hackers get into the system, they try to erase every proof of their presence. However, any changes within the blockchain are transparent and immutable, making it easier to detect whether the system has been compromised or not.
Secure data transfer
Malicious actors tap into data while it is in transit to modify or erase it. As a result, it makes data transfer insecure and creates ineffective communication channels, for example, emails.
Blockchain can prevent malicious actors from accessing data while it in transit. When applying blockchain’s encryption feature, which blocks any unauthorized access, the integrity of transmitted data cannot be compromised.
Mitigating denial-of-service attacks
In 2020, the number of denial-of-service (DDoS) attacks reached more than 10 million. DDoS attacks intend to shut down or slow down the resource systems. Cybercriminals often compromise IoT devices such as webcams or routers to make an attack.
To begin with, blockchain can be used to enhance the security of connected devices and prevent the attack in the first place. What’s more, blockchain solutions can help safeguard users from DDoS attacks by letting them join distributed networks.
Enhancing domain name system security
Domain name system, or DNS, links domain names to assets on the Internet, for example, IP addresses. Because DNS is partially decentralized, cybercriminals can use the link between the website and IP address to crash the website or redirect users to scam websites.
Blockchain offers stronger security powered by decentralizing DNS entries. In other words, blockchain can remove the vulnerable single access point which hackers use in traditional DNS.
Blockchain is not the panacea for all types of cyberattacks. However, its encryption and decentralization feature present many opportunities for strengthening information security and eliminating a single target point that can be compromised.