Utilizing the blockchain to stop knowledge breaches

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Knowledge breaches have, sadly, turn out to be an all-too-common actuality. The Varonis 2021 Knowledge Danger Report signifies that almost all companies have poor cybersecurity practices and unprotected knowledge, making them susceptible to cyberattacks and knowledge loss.

With a single knowledge breach costing an organization a mean of $3.86 million and eroding a model’s fame and its shoppers’ belief, mitigating the dangers is not a luxurious. Nevertheless, as cyberattacks get extra pervasive and complex, merely patching up conventional cybersecurity measures will not be sufficient to fend off future knowledge breaches.

As an alternative, it’s crucial to begin searching for extra superior safety options. So far as progressive options go, stopping knowledge breaches by using the blockchain could also be our greatest hope.

Blockchain expertise 101

Blockchain expertise, additionally known as distributed ledger expertise (DLT), is the fruits of a long time of analysis and development in cryptography and cybersecurity. The time period “blockchain” was first popularized because of cryptocurrency, because it’s the expertise behind record-keeping within the Bitcoin community. 


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This expertise makes it extraordinarily tough to vary or hack a system, because it permits for the info to be recorded and distributed however not copied. Because it offers a brand-new method to storing knowledge securely, it may be a promising answer for knowledge breaches in any atmosphere with high-security necessities.

Constructed on the concept of P2P networks, a blockchain is a public, digital ledger of saved knowledge shared throughout a complete community of laptop techniques. Every block holds a number of transactions, and at any time when a brand new transaction occurs, a report of that transaction will get added to each community participant’s ledger.

Its strong encryption and decentralized and immutable nature might be the reply to stopping knowledge breaches.

Enhancing knowledge safety by way of encryption

World Vast Internet inventor Tim Berners-Lee has stated lately that “we’ve misplaced management of our private knowledge.” Corporations retailer monumental quantities of personally identifiable data (PII), together with usernames, passwords, cost particulars, and even social safety numbers, because the Domino’s knowledge leak in India (amongst others) has made clear.

Whereas this knowledge is nearly all the time encrypted, it’s by no means as safe as it could be in a blockchain. By making use of the very best features of cryptography, blockchain can lastly put an finish to knowledge breaches.

How can a shared ledger be safer than commonplace encryption strategies?

To safe saved knowledge, blockchain employs two several types of cryptographic algorithms: hash capabilities and asymmetric-key algorithms. This fashion, the info can solely be shared with the member’s consent, they usually also can specify how the recipient of their knowledge can use the info and the window of time during which the recipient is allowed to take action.

Hash capabilities

When the primary transaction of a sequence happens, the blockchain’s code offers it a novel hash worth. As extra transactions happen, their hash values are then hashed and encoded right into a Merkle tree, thereby making a block. Each block will get a novel hash with the hash of the earlier block’s header and timestamp encoded.

This creates a hyperlink between the 2 blocks, which, in flip, turns into the primary hyperlink within the chain. Since this hyperlink is created utilizing distinctive data from every block, the 2 are immutably sure.

Uneven encryption

Uneven encryption, also called public-key cryptography, encrypts plain textual content utilizing two keys: a personal key that’s usually produced by way of a random quantity algorithm, and a public one. The general public secret is out there freely and could be transferred over unsecured channels.

However, the personal secret is saved a secret in order that solely the person can comprehend it. With out it, it’s nearly inconceivable to entry the info. It capabilities as a digital signature, like real-world signatures.

This fashion, blockchain offers particular person shoppers the power to handle their very own knowledge and specify with whom to share it over cryptographically encoded networks. 


A main motive for the rise in knowledge breaches is over-reliance on centralized servers. As soon as shoppers and app customers enter their private knowledge, it’s immediately written into the corporate’s database, and the person doesn’t get a lot say in what occurs to it afterward.

Even when customers try and restrict the info the corporate can share with third events, there might be loopholes to use. Because the Fb–Cambridge Analytica data-mining scandal confirmed, the outcomes of such centralization could be catastrophic. Moreover, even assuming goodwill, the corporate’s servers may nonetheless get hacked by cybercriminals.

In distinction, blockchains are decentralized, immutable data of information. This decentralization eliminates the necessity for one trusted, centralized authority to confirm knowledge integrity. As an alternative, it permits customers to share knowledge in a trustless atmosphere. Every member has entry to their very own knowledge, a system generally known as zero-knowledge storage.

This additionally makes the community much less more likely to fall sufferer to hackers. Until they create down the entire community concurrently, the undamaged nodes will rapidly detect the intrusion.

Since decentralization reduces factors of weak point, blockchains even have a a lot decrease probability of succumbing to an IP-based DDoS assault than centralized techniques utilizing consumer/server architectures.


Along with being decentralized, blockchains are additionally designed to be immutable, which will increase knowledge integrity. The blockchains’ immutability makes all the info saved therein nearly inconceivable to change.

As a result of each particular person within the community has entry to a duplicate of the distributed ledger, any corruption that happens in a member’s ledger will routinely trigger it to be rejected by the remainder of the community members. Subsequently, any alteration or change within the block knowledge will result in inconsistency and break the blockchain, rendering it invalid.

The underside line

Despite the fact that blockchain expertise has been round since 2009, it has a lot untapped potential within the area of cybersecurity, particularly in terms of stopping knowledge breaches.

The highest-notch cryptography employed by blockchain protocols ensures the security of all knowledge saved within the ledger, making it a promising answer.

Since nodes operating the blockchain should all the time confirm any transaction’s validity earlier than it’s executed, cybercriminals are nearly assured to be stopped of their tracks earlier than they acquire entry to any personal knowledge.

Jenelle Fulton-Brown is a safety architect and web privateness advocate primarily based in Toronto, Canada serving to Fortune 500 firms construct future-proof inner techniques.


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