By following our advice Blockchain will become an ideal platform for companies to store their huge amount of data
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According to the reports by Transparency Market Research, the global blockchain technology market is projected to be worth $20 billion by the end of 2024. As a technology, blockchain has taken the world by storm. People don’t trust one another with their personal data, so they need to share their data in a secured and tamperproof platform. And blockchain helps in creating that platform. But the probable benefits and weaknesses can easily be overlooked due to the hype of blockchain in the world. Looked upon as one of the most disruptive technologies across industries, Blockchain most certainly has the potential to reduce costs, increase transparency, enhance security and increase efficiency among others.
Enhancement of data security that it provides is the primary benefit of using blockchain as a technology. Data is by far one of the most important assets in the world. Some of the world’s leading conglomerates like Alphabet, Amazon, Facebook, Apple, Microsoft, etc. are data-centric companies. Securing data has become the most critical priority for businesses around the world. This is where Blockchain can be used as a strong alternative to Cloud and Server based companies.
Let’s look at how blockchain’s impact when it comes to data security:
Encryption and Validation
Blockchain platform ensures that your data is encrypted, which means that modification in data is a difficult task. You can also save a cryptographic signature of a document or file on a Blockchain. This would give users a way to ensure a file is un-tampered, without needing to save the entire file on the Blockchain. Because of its decentralized nature, you can always cross check file signatures across all the ledgers on all the nodes in the network and verify that they haven’t been changed. When you look at a file, you can guarantee that it is the same version of the document that existed at another time. If someone does change a record, then the signature is rendered invalid. Blockchain offers reliable, independent data verification which is undeniable.
Decentralized way of securing data
Since blockchain as a technology is decentralized in nature it does not rely on one central point of control. It is a digital ledger of transactions with every computer having a complete copy of the data. A lack of a single authority makes the system fairer and considerably more secure. Instead of depending on a central authority to securely transact with other users, blockchain utilizes innovative consensus protocols across a network of nodes, to validate transactions and record data in a manner that is incorruptible. As blockchain is a ledger of information it is extremely important that the information being stored is honest and accurate. Since the data is saved on multiple computers, it is extremely secured even if one or two computers malfunction.
Difficulties in hacking
As the name implies blockchain is a chain of digital “blocks” that contain records of transactions. Because they aren’t contained in a central location, blockchains don’t have a single point of failure and cannot be changed from a single computer. They are decentralized and distributed ledgers across peer-to-peer networks that are continually updated and kept in sync. Each block is connected to all the blocks before and after it. While hackers can break into traditional networks and find all the data in a single repository and exfiltrate it or corrupt it, the blockchain makes this unfeasibly hard.
As a technology, which is growing in popularity across the world, blockchain seems to be the ideal platform for companies to store their huge amount of data. Blockchain is not only secured, reliable but also transparent which makes it even more appealing to companies.