Updated: Mar 4
Ever heard of the technology that is reinventing the cloud? No?
You might have just envisaged a fictional machine possessing some form of astronomical capabilities like revamping the skies.
This technology is none other than Blockchain. Due to its decentralized, immutable, and verifiable features, distributed ledger technologies such as Blockchain have gotten much interest in the recent decade.
Over time, the meteoric rise of digital technology has synchronously incited new challenges around data security, thereby requiring a solution that would help re-architect and solve security loopholes, especially in instances of malicious attacks. Blockchain has risen to the challenge of global concerns on privacy and data protection, causing its databases to be secured with mechanisms that allow on-demand disclosure.
Let's have a look at how Blockchain works and how it may be considered one of the most secure data protection solutions.
HOW DOES BLOCKCHAIN WORK TO PROTECT YOUR DATA?
To verify numerous transactions and secure the Blockchain from any double-spending attack, a process called "mining" comes to play.
In a technical sense, Crypto mining is a procedure that utilizes cryptographic processes to solve and record data to a Blockchain network, thereby helping to secure the data stored in these blocks from external attacks. This process involves the following:
1. NODE TRANSACTION VERIFICATION: Transactions between parties are the basis or foundation of Blockchain. In this stage, a requested transaction is authenticated, (Proof of Work) or POS (Proof of Stake) consensus protocol is initiated to validate transactions effectively while solving complex math problems needed to add data to the Blockchain effectively.
2. FORMATION OF A BLOCK: This entails adding a given data or information to a new block that is subsequently joined to previously published and confirmed block entries. Forming a new block completes the verification process, validating the transactions and making the record immutable.
3. ADDITION OF HASH TO BLOCKS: Cryptographic hashing works to espouse the immutable nature of Blockchain technology in ensuring that stored data doesn't get exfiltrated. Data is converted into an irreversible condensed code or a digital signature that gives every transaction a distinct authenticated and abridged feature during this deterministic process.
4. BLOCK'S HASH ARRANGEMENT/VERIFICATION: After the hashes are created, they are subsequently arranged in a Markel tree, which encodes blockchain data more efficiently and securely by proving the integrity and validity of the data. This way, if an attempt is made to alter transactions, then there must be the need to change all the succeeding blocks' hashes.
For instance, for a hacker to penetrate or alter a block, they would have to change the hash value of every block ahead of the targeted block. This process requires an outrageous number of calculations to facilitate, therefore asserting the capability of Blockchain to secure data effectively.
5. CONFIRMATION & PUBLISHING: At this stage, the block is added to pre-existing blocks, and this new update is subsequently published across the entire Blockchain, certifying the ability of Blockchain to help in data protection by delivering transparency in a scalable way.
Blockchain, against all odds and numerous contingencies, has continued to gain exponential popularity due to its promising and revolutionary technological details.
The architectural design and nature of blockchain systems have made the achievement of data protection attainable. This way, our data can't be easily modified or changed once it is saved on the Blockchain. Due to its unique structural design, this technology makes it elusive for malicious attacks to 'simply' find their way into the system, unlike traditional data networks where data is stored in a single repository, which leaves them vulnerable and highly susceptible to attacks.
As a technology that has sprung into being one of the most revolutionary technologies in the recent era, Blockchain has proven it is the ideal platform for businesses to store their bulky data.
Hopefully, this blog has given you a better understanding of how Blockchain works and why its methods for dealing with security, privacy, and verification issues make it one of the most trustworthy data protection systems.
What are your thoughts on the matter? Do you believe Blockchain has the potential to provide us with the data security we have long imagined?