BLOCKCHAIN TECHNOLOGY: SECURITY IMPLICATIONS AND USES CASES

What is Blockchain Technology?

• This us a shared immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

What are the Security Implications of Blockchain Technology?

• Since transactions listed on a private blockchain are private, they ensure an extra layer of privacy; because private blockchains have restricted access and nodes must be specifically selected to view and participate in a network, some argue that private blockchains grant more privacy to users.

These Security Implications of Blockchain Technology happen to be:-

Decentralization

✓ A blockchain uses a decentralized distributed ledger system rather than relying on a single trusted central authority. With a distributed ledger technology, transactions are recorded across every network node, so cyber criminals face challenges viewing stealing or modifying data.

Collaborative Consensus

✓ Blockchain's collaborative consensus algorithm means that it can monitor the ledger for unusual or malicious activity.

Strong Encryption Practices

✓ Blockchain networks uses encryption and digital signatures effectively using public key infrastructures for:-

 Validating configuration modification

 Authenticating devices

 Securing Communication

Regulatory Focus

✓ Heavily regulated industries aim to protect the public and critical infrastructure with clear guidelines regarding information security. Any blockchain implementation should be carried out with a close eye on regulatory requirements.

Disaster Recovery Plan

✓ Following the risk management process, the business's disaster recovery plan should be updated with scenario surrounding the risks to the blockchain, including clear descriptions of what people must do in the event of every potential blockchain incident.

Risk Management

✓ Just as with the implementation of any business system, a thorough risk assessment and subsequent management process are required to ensure data protection and the safety of business systems.

The Use Cases of Blockchain Technology

• Blockchain Technology's core characteristics include:-

 Decentralization

 Transparency

 Immutability

 Automation

• These elements can be used in various industries:-

Capital Markets

✓ Blockchain unlocks easier, cheaper and faster access to capital

Digital Identity

✓ Provides a unified interoperable and tamper-proof infrastructure with key benefits to enterprises, users and IoT management systems.

Energy and Sustainability

✓ Increase process efficiencies and reduce costs associated with oil and gas operations and distribution.

Law

✓ Provide accessibility, transparency, cost savings, speedy efficiency and data integrity.

Media and Entertainment

✓ Tracks the life cycle of any content which has the potential to protect digital content and facilitate the distribution of authentic digital collectibles.

Real Estate

✓ Enhances fractionalization of ownership, expanded access to global markets, increased liquidity and democratized access to real estate opportunities.