Rethinking Data Protection in the Age of Blockchain

Blockchain technology has enormous potential in fields beyond the cryptocurrency sector. Data protection is one of the biggest challenges in many sectors such as defense, medical, banking, retail, etc. These challenges have become more complicated than ever before because cyber criminals have vastly improved their modus operandi. Companies are losing their reputation because of data loss, data theft, and unauthorized access to data. In such a scenario, blockchain technology with its traceability and transparency features can enhance data protection and save data to improve trust. 

Statistical Facts on Data Theft and Data Loss

A few statistical facts on data theft and data loss can shed light on the magnitude of the problem. In a report titled “The Vulnerability and Threat Trends Report 2023”, Skybox Security claims that there has been a whopping 25% annual increase in the number of data theft vulnerabilities in the US government’s National Vulnerability Database. According to the “Global Risks Report” published last year by the World Economic Forum (WEF), cybersecurity will continue to remain risky in 2024 due to recurrent attacks. 

The situation of businesses is equally grim as customer information is mostly stored in vulnerable databases internationally. In 2022, identity fraud cases inflicted a loss of $20 billion and harmed 15.4 million American adults, according to a study by Javelin Strategy and Research. Cryptojacking is another major prevalent threat to data. In 2022, there was an increase of 659% in cryptojacking attacks 2023. Large multinational companies such as Microsoft, Yahoo, Alibaba, LinkedIn, etc. have also faced data breaches. 

Role of Blockchain in Data Protection

Blockchain technology can provide respite to many sectors facing issues of data protection. It has the following advantages and features, that make it a reliable technique to prevent data losses and help law enforcing agencies to track down perpetrators of the crime.

Data Protection In The Cyber World

In the cyber world, blockchain ledgers can guard transactions, personal information, and even business secrets. It can save people’s finances just like a normal credit card by using a public blockchain. The Internet of things (IoT) can gather data collectively and process it in a data center. Blockchain can enhance the security of the data by building a smart contract blockchain.

Data Protection in the Healthcare Industry

The healthcare industry is also suffering from frequent healthcare data breaches in 2023. A recent survey reveals that an overwhelming 95% worry about potential cyber-attacks and thefts of data. Blockchain can bring some respite and improve data protection by ensuring safer methods of data storage. The immutability feature of this technology can restore trust by offering a safe environment for retrieving patient data and relieving legitimate concerns. 

Data Protection in Retail Industry

The retail industry can benefit greatly by integrating blockchain technology. Once integration is complete, data protection can become a much easier process. This is because blockchain can protect online identities by authentication. It can protect blockchain ledgers and secure communications across the network. Certain services such as the SafeNet Authentication Service (SAS) and Luna Cloud HSM Services can vastly improve the data protection systems of retail companies.

Also Read- Financial Freedom And The Positive Role of Cryptocurrencies in Achieving It

Conclusion

Blockchain technology is reliable in the context of data protection. Data protection can save millions of dollars for every sector in the world since data plays a critical role in research and development. Immutability, traceability, and transparency are the three strong pillars of blockchain’s applications in fields beyond the cryptocurrency sector. A substantial amount of research is currently ongoing to assess the possibility of integrating blockchain to improve data protection.