Blockchain for cyber security: Pros and cons

What is the role of blockchain in cyber security?

A blockchain is a digital ledger that records transactions across a peer-to-peer network. Blockchain technology can be used to record ownership of digital assets, such as money and property, as well as contracts and other kinds of data. This allows digital information to be recorded and distributed but cannot be edited or altered.

The key role of blockchain in cyber security is to provide a decentralised and distributed platform where data can be kept safe and secure. This makes it difficult for hackers to access sensitive information.

Blockchain has been used in cyber security since its inception because it allows users to share data with each other without the need for a central authority or third party. The technology makes it easier for companies to verify whether their customers are legitimate as well as keep track of their transactions.

However, blockchain also comes with its own set of security concerns. In order to ensure that the information being stored on the network is not tampered with, users will have to trust that other users are not hacking into their system or stealing their data.

Pros and cons of blockchain for cyber security

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Even though some experts believe that it isn’t yet ready for widespread adoption, there are several major benefits of using blockchain in cyber security. Let’s take a look at the pros and cons of using blockchain for cyber security.

Pros:

1. User confidentiality. The identity of blockchain participants remains confidential due to the public key cryptography that authenticates users.
2. Secure data storage and processing. Data stored in blockchain is highly secure because it cannot be altered retroactively or after the fact by an individual or group. This makes it ideal for storing information about cyber attacks, breaches and other security incidents that need to remain confidential.
3. Safe data transfers. Blockchain allows fast and secure transactions of data and finances. It has features like smart contracts that allow the automatic execution of agreements between parties throughout the course of a transfer.
4. No single point of failure. The compromise of a single node won’t affect the operation or security of the whole blockchain. The system will operate as normal thanks to multiple copies of the ledger, even in the case of DDoS attacks.
5. Data transparency and traceability. Every transaction on blockchains is digitally signed and time-stamped, so network users can easily trace the transaction history and track accounts. Blockchain offers transparency into transactions, which makes it easier for administrators to control access to sensitive data. Other users can view any changes made on a blockchain, so they know who has accessed what data when, minus the need for manual updates or additional logging systems.
6. Increased customer trust. Blockchain offers data privacy and transparency that help businesses gain the trust of their customers. Data owners can be granted full control over their personal data and decide who can access it and when.

Cons:

1. Reliance on private keys. Misplaced private keys are a major problem for blockchains because they are used to encrypt data. Once that happens, it might lead to permanently losing access to any encrypted data.
2. Scalability and adaptability. Although blockchain technology can be applied to almost any business, companies may encounter some trouble integrating it with their existing systems. It might take time to replicate or even require a total overhaul of their current system.
3. Operational costs. A huge amount of computation and storage space is needed for a blockchain system to operate smoothly. Generally, each block can contain no more than 1MB of data and a blockchain can handle only seven transactions per second. As a result, using blockchain-based systems would be more expensive than those of conventional ones.
4. Governance failure. The concept of blockchain and its implementation is not yet regulated internationally. To maintain the use of blockchain applications, there must be regulations and guidelines created for them.
5. Knowledge of blockchain. Getting up to speed with blockchain requires an in-depth familiarity with a wide range of development, scripting languages, and other resources. Currently, there’s not enough developers that are experienced with blockchain and well versed with cryptography despite the widespread use of this technology.

Conclusion

The cyber security industry is one of the fastest-growing industries in the world. Cyber security is an important part of our daily lives and plays a critical role in protecting our personal data and organisations from cyber attacks.

Blockchain technology is one of the most innovative and disruptive technologies used in cyber security today. It is still relatively new on the cyber security scene, however, it has already proven to be a valuable asset in other areas of cyber security.

In cyber security, blockchain offers several benefits. While it’s inevitable to still encounter some challenges, it has the potential to revolutionise how organisations store and share sensitive data.