Top firms are opting for Blockchain for data security – Why?

Blockchain is a decentralized technology which is a database that can be shared across a public or a private network. According to a Blockchain development company, the technology has the potential of offering the best-in-class security for industries of different genres. The reason behind being the most secure technology is due to the fact that transactions happening in the database is being shared among the network users with proper verification making the data more accurate.

Blockchain security basics and how it works –

The blockchain technology can be compared to internet, but the only difference is that the technology relies on decentralized network rather using a single operational server. The technology is best implemented for Blockchain application development; however, the technology is not only limited to the exchange of cryptocurrencies.

Blockchain technology uses a decentralized or distributed ledger that exists on different independent computers and constitutes nodes helping track, announce, and coordinate synchronized transactions accordingly. In terms of reducing security threats, nothing can come close to blockchain helping prevent data leaks and hacks effortlessly. Transactions happening in a blockchain network are converted into blocks and every block is marked with the hash of the prior block, making a complete chain of blocks. The hash function is basically an algorithm converting raw data into an encrypted code representing the actual data.

How can the top firms benefit from using blockchain for mandating security measures?
As per a Blockchain development company, some of the top benefits of the blockchain technology can be listed as –

•    Application of blockchain helps in getting a real-time update for history of activity and can maintain record of all the data or information that existed in the database.

•    Being a decentralized technology, the way of storing and accessing data in the network makes it incredibly secure because hackers get single point of entry as with a centralized database.

•    There is no requirement of a central administrator as the records stored are decentralized and replicated in multiple places.

When it comes to offering data security, blockchain is certainly exciting for having the potential to change the way businesses operate.

How implementing blockchain into your business process can power up security?

As mentioned earlier, application of this new technology (blockchain) is not limited to the exchange and in dealings of digital currencies. As per a Top blockchain development company in India, for having numerous security benefits for being decentralized and distributed, blockchain has the potential to aid businesses in different industry verticals.

•    High on transparency: Being a transparent technology is the greatest characteristic of blockchain which can be affirmed from the fact that the transaction ledger for public addresses is open to all. Being transparent helps the financial systems and businesses, giving the process an unprecedented veneer of accountability.

•    High on efficiency: Blockchain is a decentralized technology which makes it more and more efficient by removing the participation of intermediaries for processing transactions. When compared to traditional financial services, blockchain aids in faster transactions and allows P2P cross-border transfer of digital currencies.

•    High on traceability: When data is recorded in the blockchain ledger, an audit trail is made available to trace the source of transaction. This traceability feature of the technology not only help improve security by preventing fraud activities in business operations, but also help with the verification and authenticity of the assets being traded.

•    High on security: When it comes to record keeping, there is no match to blockchain that can help in secure storage of records as every transaction is encrypted and is linked to the previous one. When the network of computers confirms one ‘block’ in the network, then only another block is added to a ledger forming a chain of blocks. This ensures high security, as the transactions are immutable and incorruptible.

According to a Top blockchain development company in India, blockchain looks promising in terms of serving security purposes for most industries. Banking and financial sectors are mostly benefitted and application of the technology in this sector can help in reducing transaction fees and increase security related to the services being provided.