How Blockchains Can Prevent Data Breaches?

Blockchains can prevent data breaches effectively by virtue of the unique encryption methods adopted for it

Privacy breach happens when the ultimate control lies in one master authority, ie., the internet. What if the control is dispersed by bringing multiple players into the game? Blockchain facilitates exactly a similar mechanism ensuring checks and balances through a multi-player ecosystem. Blockchains can prevent data breaches. Blockchain is nothing but distributed ledger technology (DLT), the backbone of cryptocurrency transactions, a high-end security domain. The technology only enables data to be recorded and distributed and not copied making it difficult to change or hack a system. As Blockchains are based on the concept of Peer-to-Peer networks, it is publicly controlled digital ledger, with data stored across a network of distributed systems. Hence when a transaction is recorded all over the network of systems adding it to each and every ledger participant. Add to this the immutability of Blockchain transactions with tough encryption, Blockchains take the irreplaceable solution for data breaches.

One of its Kind Encryptions

Though the data on the internet is encrypted, it is never secure. Blockchain by virtue of its decentralized shared ledger system has a strong encryption system. Blockchain uses two types of cryptographic algorithms, viz., hash functions and asymmetric-key algorithms. These algorithms ensure data is shared with only members' consent and specify the ways and time period for which the member can do so.

What are Hash Functions?

Blockchains create blocks encoded with Merkle tree, a collection of hash values. A hash value is generated whenever the first transaction of a chain occurs. As the number of transactions increases, hash values for the previous hash are generated, ie., every block will get a hash value with the hash of the previous block's header with an encoded timestamp. This way, the two blocks get linked, making for the first link in the blockchain. The link is immutable because the link is created using unique information from the blocks.

Take control with asymmetric encryption

Also known as public-key cryptography, asymmetric encryption uses two types of keys for plain text encryption. They are private keys and public keys. While a private key is produced via a random number algorithm, a public key is a randomly generated one that can be transferred via unsecured channels. A private key is available only to the user making it inaccessible to any other party on the blockchain. It is a kind of digital signature unique to an individual.

Distributed Systems Defend:

Centralized servers, the conventional systems for data storage, are way too vulnerable to data breaches. The data once entered is directly transmitted to the terminal systems giving the user not much control over what happens next with the data. No security measures are strong enough to plug all the loopholes. Apart from unauthorized data leakage by the companies, in a worst-case scenario, data can be stolen by cybercriminals by hacking into the company's website. On the other hand, the immutable and decentralized records of data in blockchains enable users to share data in a trustless environment, with every member having access to data. This arrangement can be hacked by cybercriminals only in case of the simultaneous collapse of blocks, which is easily and quickly detected by the living nodes. DDoS attacks, which are essentially targeted at disturbing traffic toward the targeted server, are difficult to launch with a blockchain because of their decentralized nature.

Integrity with Immutability :

Data integrity is one factor that is affected badly by data breaches. Blockchain technology's immutability makes it highly impossible for anyone to manipulate data. It is a network of ledgers and once the data is manipulated, the ledger will automatically make the other ledgers discard the correction. The Blockchain breaks the moment the block data is altered collapsing the entire blockchain.