5 Ways Blockchain Improves Security and Transparency for Your App Project

5 Ways Blockchain Improves Security and Transparency for Your App Project

When people hear the term ‘Blockchain technology’, they usually associate it with Bitcoin and other cryptocurrencies, but the fact is that this technology can be used well beyond the exchanges of mentioned decentralized digital currencies, especially when we talk about transparency and security improvement of different apps. 

The Blockchain records every Bitcoin movement and creates a searchable database of every transaction in the process, but instead of recording these transactions on one central server, it stores them across many different computer based networks which can track and check each other and verify data anytime in the process. 

What is Blockchain?

A Blockchain is a digital and decentralized public ledger of cryptocurrency transactions. It is made of different records called blocks which are constantly growing and are mutually linked and secured by using cryptography. For example, once it’s recorded, block data cannot be changed without making changes in all the connected blocks which can only be done if network majority decides to do so.

Concerning the fact that the recorded set of data that Blockchain contains is publicly accessible, it is impossible to change or manipulate the data without somebody noticing. This particularity of Blockchain is what makes it the most secure and most promising technology of modern age.

Ever since the implementation of Blockchain as the core system component of decentralized digital currency Bitcoin in 2009, this technology seems to amaze tech community in many ways. Developers, researchers and other experts in this community went that far to say that the Blockchain technologies could be a permanent solution for systems which hold highly confidential data and deal with other sensitive issues such as financial data and transactions.

How can Blockchain improve the security and transparency of the apps?

Now when we know more about the concept of Blockchain, it is more clear how this technology can be used to secure the transparency, but also to ensure and maintain security of your app. 

Here are the five ways Blockchain can improve the transparency and security issues;

1. Cybersecurity problem solver :

As there is no central server which hold all the data and records of activities, and those are rather shared throughout the network of computers, it is much easier to track and discover different threats related to cybersecurity issues. In other words, if all the participants know who is doing what, the cybersecurity issue can be stopped before making the actual damage. This eliminates centralized points which can be vulnerable to cyber attacks and makes data manipulation absolutely impracticable. In case of the attack on the network, Blockchain technology also enables rapid recognition of the point-of-attack.

It is important to add that Blockchain per se cannot detect the potential cybersecurity problems or protect the app from it, but it offers the transparency which automatically makes it a change making technology when it comes to this issue.

2. Protection of infrastructure :

By storing data on secured Blockchain based platform, companies and institutions can avoid and prevent any potential security breach and threat from the outside. If your data is stored on a Blockchain, nobody can manipulate it, steal it or use it for some other purposes. If the metadata is not covered by encryption, this can lead to security breaches. But if your platform is Blockchain based, metadata is dispersed throughout the ledger and therefore impossible to be gathered in one central point.

This is also a way for companies to control the activities inside the enterprise and improve the internal security of the company.

3. Identification issues :

Blockchain technology is being used for the authentication of a user identity and to protect sensitive records related to this issue. This basically means that in the future we could abandon using the passwords as identification method while logging in to different apps. Weak passwords can enable hackers with an opportunity to enter the network infrastructure but with using Blockchain technology this would be practically impossible. So called Keyless Security Infrastructure (KSI) carries unique data hashes on Blockchain which are available on all the linked nodes and therefore very easy to spot if somebody tries any manipulation with it.

4. Changemaker in banking sector :

With storing financial data across a network of computers, compromising the data becomes much more difficult. Stealing data or making a financial fraud on a Blockchain is almost impossible, especially due to the fact that, in order to succeed, hackers would need to breach all the nodes simultaneously. Hence banks and other money exchange services are investing in research and development of Blockchain technologies which could provide almost absolutely secured storing of all its data. This could a major deal breaker in global banking and financial sector and whoever get a grasp of it first – will definitely be a leader in this field.

5. Huge potential of applying across different industries :

Along with banking sector, Blockchain based technologies have a potential to make a big and revolutionary change in a supply chain management.

For example, Blockchain can document the whole supply chain process from movement and storage of raw materials to finished goods from point of origin to point of consumption. This is a step forward in ensuring the complete transparency of the process, which was so far almost impossible to achieve. Along the way, this technology can be used to detect abuses of goods and labor force or even incidents such as environmental catastrophes which can be well hidden due to the complexity of the supply chain processes.

‘Internet of future’?

Still, developing and implementing the Blockchain technologies throughout the different business sectors is pretty much in its infancy. From technological point of view it is indeed a revolutionary thing and Blockchain technologies are already being called ‘the internet of future’. This, of course, does not mean automatic disappearance of the world of business as we know it, but it can contribute to decrease in concentration of wealth and in opening the more opportunities to change and manage the business processes across the different apps.

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