Since its invention in 2008, blockchain technology has transformed security, storage, and data transit. Beyond the financial domain, it has the ability to provide immutable, decentralized storage and verification. This article explores the use cases of Blockchain technology beyond cryptocurrencies, with a special emphasis on Blockchain for Cybersecurity cases.
What is Blockchain Technology?
The decentralized digital ledger known as blockchain technology is revolutionizing the sharing and storing of data in a variety of businesses. Healthcare, voting systems, and supply chain management can all benefit from its transparency, security, and immutability. Blockchain technology lowers risk and costs by tracking and trading both tangible and intangible assets. There is no requirement for trustworthy third parties because confidence is only required at the data entering point. A timestamp, transaction information, and a cryptographic hash are included in every block.
So, what are the use cases of Blockchain technology apart from cryptocurrencies? Let’s have a look at the instances –
Network Governance
One of the primary advantages of Blockchain in cybersecurity lies in its capacity to authenticate and validate transactions. It accomplishes this without requiring a central authority or intermediary. Instead, a widespread network of participating nodes ensures the accuracy and uniformity of data through consensus, consequently reducing vulnerability specifically against corruption, manipulation, and single points of failure.
It also enhances resilience towards cyberattacks in the central database. Issues related to network governance, such as scalability, performance, privacy, and regulation, are the challenges that Blockchain must also confront.
Public, Permissioned, Private, and Permissionless Blockchains
Different trade-offs between security, efficiency, and transparency must be determined depending on the type of blockchain (public, permissioned, private, or permissionless). For instance, great security and transparency are provided by public, permissionless blockchains like Bitcoin, but their scalability and performance are limited. Conversely, tremendous scalability and performance are provided by private and permissioned blockchains, like Hyperledger Fabric, but some security and transparency are lost.
Data Integrity
The fact that blockchain maintains the immutability and integrity of the data recorded on the ledger is another advantage. A cryptographic hash of the preceding block is included in every block of the blockchain, forming an unchangeable chain of blocks. Any effort to add, remove, or alter a block would need altering the entire chain, which the network would detect and reject. Blockchain also employs encryption and digital signatures to safeguard data from unwanted access or alteration.
To have a better understanding of the same, check out this video:
Data Integrity Challenges
Blockchain in cybersecurity, however, also has to contend with issues related to data integrity, including external data sources, human error, and quantum computing. Blockchain depends on outside data sources to supply information or initiate activities, like sensors, oracles, or APIs. These data sources could be manipulated or subject to cyberattacks, jeopardizing the blockchain’s accuracy and dependability.
Moreover, human error, such as programming faults, incorrect setups, or malevolent insiders, may create gaps or weaknesses in the blockchain system. Additionally, the security of the cryptographic techniques used by blockchain could be threatened by quantum computing, which is predicted to surpass the computational capability of classical computers.
Identity Management
The ability to handle identities in a decentralized, self-sovereign manner is another benefit of blockchain technology. Blockchain frees people from depending on authorities or third parties to establish and manage their own digital identities. Users can securely and selectively communicate their identification attributes, like name and credentials, with other parties by storing them on the blockchain.
Zero-knowledge proofs
Zero-knowledge proofs, which are cryptographic approaches that let people demonstrate specific aspects of themselves without disclosing any more information, are another feature that blockchain for cybersecurity allows. However, interoperability, revocation, and usability are just a few of the identity management issues that blockchain must deal with. Because different blockchain platforms may use distinct identity management standards and protocols, blockchain suffers from a lack of interoperability.
The capacity of digital identities to interface with diverse systems and applications, maintaining compatibility, might face restrictions due to this potential issue. Moreover, managing their own digital identities could present a challenge or inconvenience for users, an additional usability concern linked directly to blockchain technology. Furthermore, in the case of loss, theft, or compromise, individuals may not have the ability. They cannot remove or revoke their digital identities from the blockchain. Blockchain’s lack of revocation is a well-recognized concept.
IoT Security
The ability of blockchain to strengthen the security of the Internet of Things (IoT), a network of networked devices that communicate and gather data, is the last advantage of the technology. IoT devices can collaborate and communicate on a distributed blockchain platform without depending on a cloud or central server. Additionally, blockchain can offer a transparent and safe record of the information and activities of IoT devices, improving the system’s auditability and accountability.
Challenges to IoT Security
However, blockchain for cybersecurity must also address challenges pertaining to IoT security. These encompass scalability, network topology, and resource constraints. The majority of Internet of Things (IoT) devices exhibit low-power and capacity characteristics, necessitating a significant allocation in compute, storage, and bandwidth resources from Blockchain that might not be accessible or suitable for them.
Moreover, owing largely to the dynamic nature with which IoT device network topologies can vary, it may prove unfeasible or suboptimal for blockchain operation within an unchanging stable connection on these particular networks themselves.
Furthermore, because IoT devices may have a huge and expanding number of nodes and transactions, blockchain demands a high degree of scalability, which may not be feasible or practical for them.
Conclusion
With an anticipated 46.4% annual growth, global blockchain spending is predicted to reach $19 billion in 2024. The promising technology of Blockchain holds the potential to enhance cybersecurity across various domains like identity management, data integrity, network governance, and Internet of Things security. Nevertheless, we must address the restrictions and challenges associated with blockchain in cybersecurity as well.
Blockchain is, therefore, a tool that can enhance and supplement other cybersecurity solutions and best practices rather than a cure-all. For blockchain to realize its full potential and provide cybersecurity benefits, rigorous planning, execution, and assessment are needed, along with cooperation and coordination among various stakeholders.