Do you remember the news that your data from Facebook has leaked? Until then, none of us were concerned about our data privacy. We had no clue how the third parties earned money from our personal data by selling it. When such instances increased, there was an extreme need to control our data. And this is where blockchain helped.
What is blockchain?
Blockchain Technology is a type of database to store highly confidential data in an encrypted form to prevent data breaches across the globe. Here, you enter the data in blocks. Every time you enter new data, it gets filled in a new block. Additionally, the new block frames a chain with the previous block to maintain chronological order. Due to this method, it is named ‘blockchain.’
So, if a person tries to edit your data, he has to alter the previous as well as next data since they are connected. A slight tamper in the records can also be visible. It might sound doable. However, blockchain also provides an additional layer of data security through digital signatures.
To understand it better, let’s know about the two different types of blockchain- public and private. Both these blockchains provide different levels of data security. Any computer connected to the internet can join the public blockchain. But, only known organizations with suitable identities can join the private blockchain. It is how you can control your data and provide access only to the people you want. You can also demand digital signatures for identity verification before giving access to your data. So, if a person tries to alter any record in the database, the digital signature will become invalid. With this, you can know that your data has been compromised.
In short, the blockchain meaning indicates a system to record information through encryption. Hence, it is impossible to edit or delete data from a network. To know more about how blockchain helps in cybersecurity, click here.
How is data controlled in different fields?
The world is racing fast in Artificial Intelligence, Cryptocurrencies, Bitcoins, and different areas where data security has become highly essential. From healthcare to Banking and Finance to Media, Blockchain applications have spread their roots in all the sectors these days.
Let us see how Blockchain serves all these areas.
- Blockchain in Government –
Can you count the figures of the human population on the tip of your fingers? No, right? Then, how does the government of every country manages data like the birth date, death date, marital status, etc. of every individual?
The data of every individual like identity, voting details, and taxes is stored and controlled in the government’s database with utmost security easily with the help of the blockchain process.
- Blockchain in Banking and Finance –
Blockchain plays a vital role in the Finance and Banking domain.
Whenever you make a transaction, its data is stored in the blockchain database instantly. It also enables Bitcoins and Cryptocurrencies to operate individually to eliminate the fees charged by the central authority. At the same time, it reduces data breaching risks.
- Data Science in Blockchain –
Blockchain makes multiple copies of data. Therefore, it becomes nearly impossible to edit, change or delete the data in terms of data authenticity.
When it comes to data scientists, they deal with enormous datasets every day that takes a lot of effort to be cleaned and analyzed. In certain instances, when the problem statement is related to healthcare or government data, the confidentiality of the data becomes a priority. Blockchain enables you to maintain this authenticity of the data ensuring the data quality and ease of access by streamlining the process. It also reduces the time and cost of data analysis.
- Blockchain and Healthcare –
Hospitals can store their patient’s medical records securely by generating the reports and accepting the patient’s consent with the help of blockchain applications. The patient shall always stay in relief of the security of their medical documents in terms of both disclosure and immutability of the content.
For all the pharmaceutical companies developing and producing new formulas every day, the data is stored securely with the help of blockchain technology. It controls your data from hackers.
- Blockchain and Media –
The media and entertainment industry also has high confidentiality and copyright issues on music lyrics, scripts, set designs, etc. So, they have already started to store data using the blockchain method. The blockchain database also prevents plagiarism possibilities in the market.
- Blockchain and Supply chain management –
Top companies like Walmart, Ford, UPS, FedEx also store data in the blockchain database. It is a potential solution to managing their supply chain use cases. With business growing globally, the complexity of supply chains is also increasing drastically. The need to have efficient and reliable process management strategies has become the need of the hour.
From delivery and payment operations in warehouses to nondisclosure contracts and agreements, blockchain can do it all. It has kicked into the industry with its potential of providing quick solutions related to transparency, resilience, smart contracts, streamlined supplier onboarding, etc.
Final Words:
The key secret of data security in the blockchain is data stored in blocks. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data formed of hashing algorithm- all of which represent a Merkle tree.
The blocks are maintained in the forms of small network nodes stored in leaves of the Merkle Tree. So, it becomes difficult for hackers to hack concurrent nodes simultaneously.
Blockchain technology is also referred to as distributor ledger technology. Because of data immutability, hackers cannot steal or alter the data that has already been stored in the blockchain database.
If you want to know more about how a blockchain is developed, Refer The Encrypt’s Blockchain Development Guide.
