What is Blockchain and How Does It Work in the Realm of Cybersecurity?

06-Jul-2022

Spending on cybersecurity has grown at an exponential rate over the last decade, with no indications of decreasing. According to one industry survey, companies aim to spend more than $1 trillion between 2017 and 2021 to safeguard themselves from cyber risks.

Cybercriminals and hackers, however, are not slowing down their job despite this massive spending. They have gained more sophisticated methods to outdo any efforts by attacking prominent and confidential vulnerabilities, and intercepting applications, devices, and network traffic.

As per the report of CB Insights, in the year between 2017 and 2018, the theft of confidential files spiked to a staggering number of 6 billion. According to other industry research, there has been a whopping increase in the quantity and cost of cyberattacks.

Traditional security mechanisms, such as authentication, key management, cryptography, and privacy concerns, are frequently outwitted by these sophisticated attacks. Due to the coronavirus pandemic, a substantial percentage of employees are working from home, creating additional vulnerabilities. As a result, rather than developing more powerful tools, many companies are reconsidering the mechanisms that led to these flaws in the first place.

Blockchain which has recently gained traction has come about as a new weapon for the cybersecurity field. To understand how blockchain in cyber security works, let us get into the nuances of Blockchain technology here in this article.

What is Blockchain?

Blockchain technology is a distributed and decentralized ledger system that allows numerous computers to record transactions. Blockchain began as the technology that underpins bitcoin, but it has now evolved into a viable cybersecurity mitigation technology. Human error, in particular, continues to be the biggest source of data breaches. Blockchain completely automates data storage, removing the human element from these systems.

Benefits of Blockchain Technology

Blockchain can be used in any industry or field. This is because any type of digital asset or transaction from any business can be placed into the blockchain. Because of its ability to detect any wrongdoing and provide certainty in transaction integrity, the new technology is regarded as a trustworthy cybersecurity protocol.

Blockchain in Cybersecurity- An advanced approach to Cybersecurity

Blockchain offers a different path to increased security, one that is less traveled and less inviting to criminals. This technique reduces vulnerabilities, provides strong encryption, and more effectively checks data ownership and integrity. It may even eliminate the necessity for some passwords, which are often referred to as the weakest link in cybersecurity.

The utilization of a distributed ledger is the primary benefit of blockchain. By removing the most obvious targets, a dispersed public key infrastructure model eliminates many of the hazards associated with centrally held data. Unless a platform-level vulnerability exists, transactions are recorded across all nodes in the network, making it impossible for attackers to steal, compromise, or tamper with data.

Blockchain's collaborative consensus process eliminates yet another typical flaw. Without the need for a central authority, it can keep an eye out for malicious behaviors, anomalies, and false positives. It is possible to deceive one pair of eyes, but not all of them. As a result, authentication is strengthened, and data communications and record management are made more secure.

Although blockchain has a lot of unusual qualities, it does use encryption, which is one of the most significant cybersecurity techniques. In an internet of things (IoT) environment, the distributed ledger can use public key infrastructure to protect communication, authenticate devices, validate configuration updates, and discover confidential devices. A blockchain system can protect linked thermostats, smart doorbells, security cameras, and other sensitive edge devices via encryption and digital signatures.

According to a new analysis from Palo Alto Networks, 98 percent of IoT device traffic is unencrypted, making it "low-hanging fruit for attackers."

This method can also be used to defend against distributed denial-of-service assaults (DDoS). A blockchain-based domain name system (DNS), which is the mechanism for directing internet traffic, can eliminate the single point of failure for these assaults. A DDoS attack on the servers of one DNS host brought down a major chunk of the internet in 2016.

Features of Blockchain Technology

Learning the intricacies of blockchain would be incomplete without getting a grasp of the principal features of blockchain technology. Let us briefly outline them as follows:

Immutable

The blockchain is immutable, which means it is a permanent and unchangeable network. Blockchain technology is based on a network of nodes.

The digital ledger is replicated on every node in the network. To add a transaction to the network, each node verifies its legitimacy, and if the majority of nodes agree that it is genuine, it is added to the network. This means that no transaction blocks can be added to the ledger without the consent of a majority of nodes. Any records that have been validated are permanent and cannot be modified. This implies that no one on the network will be able to update, remove, or edit it.

Distributed

For securing complete transparency, each of the participating members of the network owns a copy of the ledger. A public ledger will contain detailed information about all network participants and transactions. A better result is ensured by the spread of computational capacity across the computers.

Decentralized

The blockchain network is decentralized, which means there isn't a single governing authority in charge of all decisions. The network is created and maintained by a set of nodes. The blockchain network's nodes all have the same copy of the ledger.

Secure

The blockchain's records are all individually encrypted. Encryption offers an additional degree of protection to the entire blockchain network process. Because there is no centralized entity, it is not possible to add, update, or delete data from the network.

Every piece of data on the blockchain is cryptographically hashed, giving each piece of data a distinct identity on the network. Every block has its own unique hash as well as the previous block's hash. The blocks are cryptographically connected together as a result of this characteristic. Any attempt to update the data would require changing all of the hash IDs, which is impossible.

Consensus

Each blockchain has to have a consensus mechanism in place to assist the network in making timely and unbiased choices. Consensus is a decision-making technique that allows a group of active nodes on a network to achieve an agreement quickly and efficiently, ensuring the system's smooth operation. Nodes may not trust each other, but they can rely on the algorithm at the network's core to make judgments. There are numerous consensus methods available, each with its own set of advantages and disadvantages. A consensus algorithm is required for every blockchain; else, it will fall in value.

Unanimous

Before records may be uploaded to the network, all network participants must agree that they are valid. If a node wants to add a block to the network, it must receive a majority vote; otherwise, the block will not be added. A node cannot add, modify, or delete data from the network on its own. Each record is updated at the same time, and the changes spread fast throughout the network. As a result, no changes may be made without the agreement of the majority of nodes in the network.

Role of Blockchain in Cybersecurity

Blockchain in cybersecurity helps prevent unauthorized access to the colossal amounts of data generated on social media platforms daily. Blockchain helps mitigate the complexity and havoc that otherwise hackers may create by gaining access to all the personal and confidential information of individuals and groups on social media platforms that are constantly on the rise.

Blockchain is a better alternative to end-to-end encryption. Blockchain technology helps develop a standard security protocol and form a unified API framework applicable for securing private messages.

Blockchain technology can be used to secure such systems or individual devices by decentralizing their management.
By decentralizing Domain Name System (DNS) entries, blockchain technology reduces Distributed Denial of Service (DDoS) attacks
With ever-increasing amounts of data being generated every day, storing data in a centralized location puts it in danger of a hacker exploiting a single weak point. Storing of data in decentralized form with the application of blockchain technology will complicate accessing of data storage systems for data thieves.
Blockchain technology verifies activities including Patches, installers, and firmware
By employing encryption, blockchain technology can be utilized to safeguard data from illegal access while it is in transit.

The blockchain presents a plethora of chances for maintaining a high level of data security, thanks to its prominent qualities of dependable data encryption technologies, the integrity of data, network resilience, and scalability. It will be highly beneficial for firms to migrate to a blockchain technology-based cyber security than relying on the traditional system.