How Blockchain Brought Solid Level Security To Fortune 500 Companies
Cybercrime is estimated to cost the world more than $10 trillion annually by 2025. If measured as the GDP of a country, that would represent the third biggest economy in the world after the U.S. and China.
That shows that not only should governmental institutions and banks invest in cybersecurity but private corporations as well. In fact, giants like US Bank, JPMorgan Chase, Bank of America and IBM are some of the early adopters of blockchain technology.
With the technological advancement of cybercrime, cybersecurity must take a step forward. With the implementation of private blockchain OS, cybersecurity reaches a whole new level.
Fortune 500 Blockchain Plans
According to a survey of top fintech and tech companies by Synechron, 94% of companies had plans related to blockchain initiatives in the near future. Some of the world’s largest companies are beginning to realize the potential that blockchain can bring.
Samsung implemented blockchain security for the virtual assets of its users. It came up with a series of apps that allows users to store information safely, including crypto addresses and amounts. In addition, Private Share brings encrypted chatting capabilities to the table.
In 2019, Google partnered with Chainlink to create a blockchain project that entailed processing future contracts at a safer level, including enhancing the privacy of transactions.
Of course, there are those that failed. In 2019, for example, Facebook (now Meta) had an idea to air its own cryptocurrency called Libra. It had originally gained the support of financial partners like Visa, PayPal, eBay, Stripe and MasterCard. However, regulators questioned the plan, and it ended up falling through.
Why Is Blockchain Secure?
In 1991, a chain of secure information-containing blocks with the help of cryptography was described in the work of W. Scott Stornetta and Stuart Haber. This event, followed by 2008’s breakthrough of Bitcoin, set the ground for blockchain use.
In 2014, the public started realizing what the potential of this technology was. Blockchain technology was successfully separated from the above-mentioned cryptocurrency and began being used for other purposes. The most cherished qualities of a blockchain are now being developed into something new each day.
Fortune 500 companies value blockchain’s capabilities mostly because of the following qualities.
• Peer-to-peer sharing. P2P sharing ensures that no data is passed through a single channel. The information is passed through the millions of nodes in the network while using the two unique keys of both the sender and receiver. There is no middle man in blockchain transactions, which is usually the weakest link of any informational exchange. This way, the process is 10 times as secure and much faster.
• Decentralization. Hackers love sensitive data being stored in one place. That makes it easy to target and sets a clear target for them. Blockchain technology breaks information into pieces and spreads it all over its network, and each node stores chunks of information. If a separate node gets corrupted, there wouldn’t be a dangerous data leak.
• Encryption and validation. Cybersecurity relies mostly on encryption and validation. All data stored in a blockchain is both encrypted and encoded upon storage. Users can decode the received information with the use of their personal key or a set of keys. Files are also validated with the help of signatures and records, making sure nothing has been altered during the process of receipt.
• Blockchain can be private. Blockchain technology can be both private and public. Limiting access to a blockchain project would greatly increase the security of a network, as it eliminates the majority of the threats. Although private networks have much fewer nodes, they are greatly more secure, and that is the reason why Fortune 500 companies use them. The reason for that is that nobody outside of the network can access it, which eliminates the chance of decoding even singular nodes.
• No DDoS. Blockchain is the single viable solution for the handling of DDoS attacks. This is one of the top reasons why successful companies go for decentralized technology as a form of cybersecurity.
Small Businesses Can Also Benefit
Fortune 500 companies, alongside other successful giants, are stepping up their cybersecurity game with the help of blockchain technology. This puts small businesses right in the crosshair of hackers.
Despite small businesses not considering themselves a target, they’re actually the target of 43% of cyberattacks — meaning they could definitely benefit from blockchain security. Transitioning toward blockchain as a small business can bring many benefits, including safer and cheaper cloud storage, new forms of payment, capital raising and smart contracts.
Blockchain technology can offer a way to cut down costs from mediators like attorneys and distributors. Smart contracts are self-enforcing contracts that, with the help of blockchain technology, cannot be manipulated or changed and can be used instead of commercial leases or deals between vendors and suppliers. Accepting new forms of payment from customers could also be one of the next steps in the journey of a small business.
Preparing To Adopt Blockchain As A Small Business
Regardless of whether you need new cloud storage or decide to step up your game with blockchain payments or contracts, you need to prepare your company for adoption.
In order to do so, you need to make sure a wide variety of processes are automated. Your BI, CRM or ERP software solutions need to be properly optimized, and no data in your business processes should be lost or duplicated.
Most importantly, employees should be trained in dealing with blockchain, regardless of their position in the company. Everyone should know how it functions and why it was the chosen way to go.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs, and technology executives.
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