With the emergence of cryptocurrencies such as Bitcoin, the term blockchain has also become increasingly important in recent years. No wonder: a blockchain is a modern and extremely variable technology that can be used in a variety of ways. Find out what a blockchain is and what innovative possibilities it holds for cybersecurity in this article.
WHAT IS A BLOCKCHAIN?
First, it must be stated that there is noone blockchain, but rather that it is a complex, digital technology. In a nutshell, however, blockchain can be understood as a tamper-proof management system for data. This can be any type of data, such as text or numerical values. Thanks to automated procedures, every change and transaction is logged and stored, which can be viewed by all integrated users. In this way, a high degree of transparency and traceability is ensured.
To use a simpler thought picture, the blockchain can be thought of as a table that is available and can be continued in full copy on many different computers over a network. Each change is automatically documented accurately with a timestamp and information about the person. Due to the large distribution in diverse locations in the network, the blockchain is safe from failures and corruption. The data it contains can be viewed and verified by all network participants in a public blockchain, for example, in the case of cryptocurrencies such as Bitcoin. A detailed definition of blockchain can be found here.
Blockchain technology thus has three basic principles in particular: Confidentiality, Availability and Integrity. Trust is created through the high level of traceability of the documentation of changes. This makes the system transparent and the data available to all users of the network. Integrity arises from the fact that the blockchain checks itself automatically and changes can only be implemented with a private key, like the wallet system for bitcoin transactions.
Based on these basic principles, one can already see that a blockchain also shows a lot of potential for cybersecurity. For example, it is already being used outside cryptocurrencies to secure sensitive data. Large companies such as Microsoft and Intel are already using blockchain technology to create a decentralized identification system and secure sensitive information and personal data, to name a few examples. But this technology is also becoming more and more established in other industries, such as insurance (to simplify international payments) or retail (for supply chain infrastructures).
BLOCKCHAIN IN CYBERSECURITY: THE NEW POTENTIAL APPLICATIONS
As mentioned at the beginning, blockchain technology can be used for any type of data, so the areas of application are also particularly diverse. If you are also interested in blockchain applications in your company, we have listed some particularly suitable options for you here:
Decentralization
A big advantage of the blockchain is the decentralized storage of information. Unlike a cloud system, there is no central instance that could be damaged or modified by a hacker or attacker. The data is stored on different network nodes and can only be changed by trusted users. For a cyberattack, attackers would have to change every copy and thus also crack all the users’ security keys, which is why changing files and internal systems is extremely complex.
Validation of software downloads
Blockchain technology can certainly be used for applications outside the financial sector. Thus, updates, downloads and patches can also be controlled thanks to blockchain-based solutions. In companies, updates are often performed simultaneously on all computers. Thanks to blockchain, the IT department can check the security and validity of updates and downloads in advance and only then release them to all devices. This also helps prevent supply chain attacks, especially since software and IoT devices are the main targets for network access.
DDoS attack risk mitigation
DDoS is the abbreviation for Distributed Denial-of-Service and refers to an attack method by which, for example, Trojans are distributed in networks to create a botnet. All computers in this network can then be controlled by an attacker. Often this is used in such a way that huge numbers of requests are made at the same time in order to attack and paralyze the network – there is a so-called “denial of service”.
Particularly for companies with sensitive data and frequent exchanges, this can cause a great deal of damage after just a few minutes, as already seen with a DDoS attack in February 2020 on the Amazon Web Service.
A blockchain can help in this case because it is decentralized, spreading the attack surface instead of using just one server with a few IP addresses.
Biometric private keys
You may have already heard about the so-called “wallets” for cryptocurrency transactions. This is called an encryption for your account, which is important for transactions, among other things. Such personalized keys are an important element of blockchain technology. Each user of the blockchain network receives their own access key, which is designed to be so complex that it is difficult to hack. For example, a wallet contains a public key with its own cryptocurrency “account number” and a private key consisting of a list of 24 words assigned to each wallet by a random number generator.
One step further is biometric encryption – password-free access thanks to individual retina scans and fingerprints. These are significantly more difficult to nearly impossible to imitate, and thanks to blockchain solutions, they can be deployed as well.
IoT security
The Internet of Things (IoT) describes a network of physical objects that are equipped with software so that they are networked with other devices and systems via the Internet. This allows data and information to be exchanged between objects. There are now more and more such devices in industry, but also in our own homes – kitchen appliances, cars, baby monitors or industrial machines are just a few examples.
You don’t have to be an IT professional to imagine that these devices can be a popular gateway to corporate software for shady hackers. Blockchain technology can help decentralize such systems and make security decisions network-based. As described at the beginning, changes in a blockchain network are automatically checked and must be verified, depending on the setting. This enables IT departments to directly detect and prevent unwanted changes in the blockchain system.
NEW WAYS OF CYBERSECURITY
Let’s get back to our opening question: Is blockchain the new future for cybersecurity?
Cybercrime continues to evolve. Attackers are constantly finding new ways and loopholes to penetrate databases, and as a result, the threat of cybersecurity risks is increasingly on the rise. The digital world must be secured accordingly by new technologies – such as blockchain, which can reduce the potential and attack surface for hackers through the decentralized solution. Today, large companies and providers are already using this technology outside virtual currencies. Examples of cyberattacks and their consequences, such as the 2020 DDoS attack on Amazon web service, show that companies need to rethink their strategies and adopt more secure ways using blockchain. As with all new technologies, the most important thing is to turn to experts for advice.
Are you wondering which solution is suitable for your company’s cybersecurity and how it can be optimally implemented? With our extensive know-how, we at Dinotronic are your reliable partner in the field of cybersecurity. Learn more about our Cybersecurity Risk Assessments today, which can help build a cornerstone for your successful cybersecurity.
