There’s no longer any denying the fact that Cryptocurrency is a financial force to be reckoned with. Since the introduction of Bitcoin, Ethereum, and other currency models, countless entrepreneurs have made a fortune investing and trading these new digital assets. But the Blockchain technology that powers Cryptocurrency has many different applications. As you’ll see in this article, among the most valuable is cybersecurity.

What is Blockchain Technology?

Blockchain might seem like a big mystery to anyone who was born before 1995, but the reality is that this exciting “new” tech is little more than a digital ledger. You see, Blockchain is a system of recording information that makes it virtually impossible for someone to alter or hack that data. It allows transactions to be recorded, duplicated, and distributed across a network shared by multiple users (sometimes millions). Known as Distributed Laser Technology (DLT), Blockchain creates a sort of decentralized information database that can record countless digital transactions.

Key Blockchain Characteristics

You may already be noticing some aspects of Blockchain that might make it suitable for cybersecurity applications. If so, you aren’t alone. After all, the pursuit of a 100% secure information system has been the goal since networks were first invented. And while we may never get to that point, we can continue to decrease the size of the window through which hackers can crawl.

Below, we’ll list some of the characteristics of Blockchain technology that make it such a potentially valuable asset in the war against information theft.

It is Decentralized

Actually, Blockchain networks can be either centralized or decentralized, but the latter is far more common than the former. In such a case, no member of the network has to actually have contact with any other. Instead, the Blockchain ensures they all have the same copy of the distributed ledger at all times. If one person’s ledger is copied or altered, it will be rejected by the rest of the network. This is not only unique, but it’s rather easy to see the security potential in such a setup.

It is Incredibly Secure

Blockchain technology is particularly novel because it cannot be overwritten. Instead of using one ledger over and over again, it instead constantly records data using hash functions and timestamps. This is the “chain” aspect of the technology, and it makes data manipulation (in the traditional sense) highly impractical. This security is further enhanced by the cryptographic encryption that goes into every “transaction.”  Not only is such a system incredibly difficult to hack, but it wouldn’t even be worthwhile to do so, as only parts of the respective data could be retrieved.

It is Anonymous

The fact that Blockchain networks allow each member to function independently of one another allows for a large degree of anonymity. However, it should be noted that that anonymity depends on the type of transactions being recorded. After all, in the case of cryptocurrency trading, the system must apply some form of ownership to the hashes. Otherwise, there’d be no indication of who purchased what from where. So, while some tech experts are comfortable using the term “anonymous,” others prefer the more accurate term, “confidential.”

It is Immutable

All of the aforementioned features are sort of hinting at this one. That is, that Blockchain’s very nature makes the database it contains immutable. You simply can’t manipulate data that already exists in the Blockchain. Were you to try, the network would immediately pick up on it and reject the changes. How difficult is it to hack the technology? Let’s just say there’s a reason you don’t hear about Bitcoin fraud very often.

Some Compelling Blockchain Use Cases in Cybersecurity

Clearly, Blockchain has the potential to vastly improve many aspects of cybersecurity. From data integrity to identity protection to enabling devices on the IoT to function more safely, the sheer number of uses is too compelling to ignore. Thanks to its built-in confidentiality, availability, and integrity, everyone from the CIA to small IT companies is exploring their options. Below, we’ll list some of the most interesting use cases out there at the moment.

1. Identity and Access Management (IAM):

The User Name and Password combination has been around since the dawn of computers. But as ubiquitous as it might be, there’s no denying that it’s well past time for an upgrade. After all, authentication tampering is a massive problem for both public and private institutions. Not only does it allow thieves access to tons of information, but that access is completely unrestricted, as the system recognizes them as the user. By adding Blockchain into the process, users can create their own multi-signature authentication that forgoes user names and passwords for ledger-based recognition.

• IoT Security

“Internet of Things Devices” are all the rage nowadays, but the more power over your home systems you give to Alexa, the more problems it can cause. From smart doorbells to security cameras and thermostats, these IoT devices are rarely as secure as we want them to be. This means that enterprising data thieves can use them to gain access to broader parts of your system. Fortunately, Blockchain technology has the power to change all that. By allowing the devices themselves to make independent security decisions, they can lock themselves down in the event of a breach. At the same time, device-to-device communications can be better encrypted, removing the incentive to tamper with them in the first place.

• Secure Messaging

Privacy should be of the utmost importance to anyone who uses the internet. However, massive data breaches revealing private information, photos, and messages happen so often as to be almost expected. However, new startups (like the Newport Beach firm Obsidian) are introducing Blockchain technology to help solve this problem. Unlike end-to-end messengers, their platform randomly distributes metadata via a Blockchain ledger, ensuring it can’t be accessed in its entirety at any one point. Again, this doesn’t just solve the problem of data theft – it removes the benefit of seeking that data at all.

• Secure DNS (Domain Name Services)

It doesn’t take much searching to find examples of cybercriminals compromising internet infrastructures by hacking the DNS provider. From PayPal to Twitter to Netflix, it seems no platform (or data contained therein) is safe from these attacks. Blockchain could change all of that. A new project, called Nebulis, is experimenting with using the Ethereum blockchain and IPFS, an alternative to HTTP, to create a new type of DNS infrastructure that will be all but immune to invasion.

• Mitigating DDoS Attacks

Distributed Denial of Service (DDoS) attacks attempt to interrupt the flow of a server by flooding it with unwanted, unauthorized traffic. Some such attacks include explosive data washes that come in at around 100 Gbps, which is enough to overwhelm even the most generous bandwidth. However, a new Blockchain-based startup, Gladius, is attempting to introduce decentralization solutions that allow various platforms to protect themselves by pulling from random “bandwidth pools” in the event of an attack.

Conclusion

The explosion of Cryptocurrency and NFTs is a big deal, but it tends to overshadow the broad potential of Blockchain technology. As more innovations are made and more startups are founded, it’s likely we’ll see some significant breakthroughs in cybersecurity. Whether you’re an independent user or a business owner, we’re sure you agree that such advances in online protection are long overdue.

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