Blockchain-based solutions have already started conquering the business world. Enabling to solve various issues, they are becoming widely introduced in the work of many companies.
Though blockchain appeared as a technology behind Bitcoin, it can serve different purposes, e.g, for fraud prevention, safe data storage, digital identity, and carrying out transactions between autonomous parties.
Since blockchain is based on cryptography and data in each block is hashed, it has a tremendous potential to solve a wide range of security problems.
Noteworthy, that blockchain is an immutable and inconvertible data record, which means that all the information, once written in the database, will be stored on it with no possibility to be altered.
Blockchain use cases
1. Traceable secure transactions
Blockchain is a distributed ledger that provides a digital data record, where no one can change blocks or substitute an intermediate block in the chain. A financial transaction needs confirmations from the sender, receiver, and miner. Once they are made, the transaction is considered to be successful.
Each piece of information, each transaction, each user login are recorded, saved, and confirmed by all parties involved. Each insider threat is tracked and notified about. When processing financial operations on the ledger, there is a confidence
that the data won’t be stolen or compromised.
2. Safe data storage
One of the key benefits of blockchain is safe data exchange and storage. The main concern in cybersecurity is to provide information safety.
Representing a decentralized ledger and inconvertible data record, blockchain enables control of all communications and other activities that occur in the system.
Not only cryptocurrencies can be the object of transactions, but any data as well.
In the healthcare, for instance, blockchain can be used for safe exchanges of important medical information between organizations, which allows them to improve document management and reduce drug theft.
3. Minimization of human errors
Another “vulnerability” refers to paperwork, which includes human errors when inputting information and preparing documents, loss of important documents, data changes, and data thefts.
By using blockchain for device verification it's possible to remove the need in logins and passwords. A company can give the device an encrypted identity like an SSL certificate, which is included and then verified on the distributed ledger.
As the network participants having access always know who is doing what, all insider threats and suspicious activities are tracked and instantly shared on the network.
4. Securing the Internet of Things
In the Internet of Things, blockchain comes with great data protection capabilities. Here the technology can be used for monitoring and recording communications between multiple connected devices.
By applying blockchain, companies can keep the history of their activities, track suspicious activities, and resolve other IoT security issues. Here you can find out, how to protect IoT with the help of blockchain.
5. Transparent supply chains
Representing a large complex industry with many sides involved, supply chain management carries various challenges. Companies often suffer from illegal practices and counterfeit of goods.
When being transported from their production to retail stores, goods have to pass up to 100 and more delivery stages and different parties (manufacturers, suppliers, retailers, etc.). The life cycle is really complicated and requires intelligent control.
Blockchain can help ensure the full visibility of supply chains by providing each product with a digital ID. It also removes the worry about possible fraud and counterfeit as the data can’t be changed or deleted.
Also, find out other blockchain use cases in the field of security.