We live in a world where businesses can suffer huge online breaches of security. However, thanks to Blockchain, this risk is being gradually reduced. Here´s how.
What exactly is blockchain? Basically, it is any company data stored online in blocks, connected and secured by cryptography. Theoretically, the system should be unbreakable, protecting businesses and their data. Blockchain also eliminates the need for central authorisation. How does that relate to e-commerce?
E-commerce has been changing rapidly over the last five years. The internet commands more power than ever before. Conducting a business entirely online can be risky in terms of security breaches. Ideally, the technology that e-commerce needs to protect it´s information should be the most advanced and the most secure.
How is blockchain technology helping online businesses protect themselves? Firstly, the level of encryption technology is complemented by the trust that this engineers. Businesses need to keep up with rapid advancements. By consistently evolving, this technology allows for high level of security, both literal and metaphorical. Blockchain and all it´s benefits can not only protect data but also promote new business. Customers feel more secure, and are more likely to use a business employing this technology.
It may sound obvious but this technology is also protecting businesses simply by being the most secure. By decentralizing data, the system is strengthened and not weakened. Centralized systems are at much more risk of hacking, because if one system goes, the rest fall down too.
We have ascertained that centralized systems are prone to attack. By decentralizing your system, there is no weak entry point that can be attacked by hackers. Blockchain allows data to be stored remotely of other blocks of data, so nothing can be connected. This remains controlled by the business itself, but the data is stored seperately. This helps protect data at every level, with the risks of attack being reduced significantly.
Blockchain technology is also user-smart. An e-commerce business can give security clearance to a select number of individuals to one block of data at a time. This protects from in-company sabotage. These are known as smart contracts, and are transparent in that the transaction is completed only by those with clearance. This doubly protects from attack inside and outside of the business. Certain people have access and the visibility to external parties is dramatically reduced.
Effectively the data stored online can be ´fingerprinted´ to track it´s movement. It can also be timestamped. This is essential in proving the authenticity of transactions and their movements. This idea of fingerprinting also works particularly well with copyright. Now, e-commerce businesses can publish their work online without fear of copyright breach. At every step of the process, a business can ensure that their product is entirely genuine. It goes without saying that this also protects from external theft.
As you can see, Blockchain has many benefits for e-commerce businesses, centering on data protection. For more information on technology for business, please visit DES Madrid.