The world is witnessing a paradigm shift in technology, especially when it comes to the financial world. Fintech, an amalgamation of the words ‘finance’ and ‘technology’, has been the buzzword for quite some time. But as technology grows to make things easier, so do the threats of cyber-attacks.
While cybersecurity has seen a tremendous transition in the past few years, cyber threats are pretty standard, and every few seconds, someone falls prey to an attack.
With these threats constantly pinning down businesses and individuals, many investors have become skeptical about digital assets – especially crypto. The average Indian investor is also dubious about investing in crypto due to such risks. However, the question arises: can India get crypto-ready with blockchain technology to combat the myriad security threats?
Blockchain — What It Is and How It Can Help in Cyber Security
Blockchain technology is a specific type of database that stores information differently than traditional databases; in blocks chained together. Built to be transparent, blockchain technology is decentralized and fully automates data storage – reducing the chances of human error. While it was primarily used for storing and sharing transactions of Bitcoin, the world’s largest cryptocurrency, it can be utilized in almost every sector to strengthen its security. The technology has turned many eyeballs towards it, largely due to its capabilities of providing a rigid and secure framework for business transactions.
It is evident that blockchain technology is emerging as a sturdy firewall for businesses and individuals fighting against cyber threats. But where can it be used to help the general populace? Here are certain examples where blockchain technology might help us be secure and safe.
The Internet Of Things: Many a time, breaches have been executed through smart devices such as routers and temperature controllers through which hackers gain access to the whole network system. Home automation is not as sweet as it seems and can be a welcome sign for hackers to enter your network. However, with blockchain, the network can decentralise the network administration and make it harder or impossible for hackers to access a device, let alone the whole network.
Private Messaging: Social media and other private messaging and networking applications often store heaps of information prone to security breaches. While many applications have employed end-to-end encryption, blockchain technology can keep the data secure and safe. While most messaging applications currently lack the safety net required, some are now turning to blockchain to keep their data private and secure.
Decentralized Storage: Most businesses tend to take the easy way and use a centralized storage solution, keeping all their data in one place. In such a case, the hackers need to find just a single unprotected junction, and they can access all your data. However, using blockchain, businesses can ensure decentralized storage, making it extremely hard for hackers to access the entire storage unit, keeping data relatively secure.
Financial Transactions and Cryptocurrency: Initially used with Bitcoin, the world’s largest cryptocurrency, blockchain now powers thousands of Cryptocurrencies across the market, making the system robust. However, traditional banking has also started noticing the blockchain technology to secure their digital transactions, as they are constantly torpedoed with cyber-attacks where hackers try to get their hands on the trillions of dollars that move around daily. Blockchain can provide a multi-layered security protocol to these banks, and soon we will see major financial institutions using the technology on a large scale.
What the Future Holds
The Indian crypto market has grown tremendously over the past few months, and the pandemic has driven many investors to expand their portfolio. The acceptance of crypto by large companies worldwide, such as Coca Cola, Paypal, Starbucks and Microsoft, has also provided new investors peace of mind concerning crypto’s future. While the average Indian investor may not be well versed with cyber security and the looming threat, the introduction to crypto and blockchain can significantly help them get ready for cyber security concerns. As for blockchain, it is considered the future, and for many industries, the future is already here. One thing is certain: blockchain technology is here to stay.
The author, Edul Patel, is CEO and Co-founder at Mudrex, a global algorithm based crypto trading platform. The view expressed are personal
First Published: IST
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