Broader masses typically associate blockchain technology with cryptocurrencies. However, storing and transferring digital assets is not the only role this advanced technology plays. Blockchain has a massive impact on ensuring cybersecurity, too. Moreover, using blockchain for business can improve the company’s security and make it almost immune to hacker attacks.
Hence, placing your business and crypto data on the blockchain is highly advisable. To do so, merchants should consider advanced blockchain security solutions. Once in place, no hacker would succeed in reading the hidden transactions and reversing them. In addition, your business information will spread across numerous devices. As a result, it will remain safe even if one device gets compromised.
This blog post explains the basics of blockchain security and how it can help your company diversify. It also suggests reliable options to boost business safety.
What Is Blockchain Security?
Blockchain security is an all-encompassing risk assessment technique used for a network to guarantee its safety. Moreover, the system protects your data against external attacks, frauds, and breaches. Its integration includes testing methodologies, secure coding practices, and implementing cybersecurity frameworks.
But how is all this possible? Blockchain technology has a data structure with inherent security features. Based on the principles of cryptography, consensus, and decentralisation, the tech ensures trust in transactions. Data remains structured into blocks on distributed ledgers, with each block containing a single or set of transactions. New blocks connect to previous ones in a cryptographic chain, so it is nearly impossible to tamper with them.
Thanks to the consensus mechanism, all block transactions get validated and agreed upon, ensuring their authenticity and correctness.
How Does Blockchain Security Help Companies?
Regardless of your enterprise size, keeping sensitive and payment data safe and unaltered is crucial. Below, we explain how blockchain security solutions can enhance virtual safety.
Protected User Data
Businesses must protect their customers’ online data. Ensuring such private information remains safe will build trust with your current and potential clients. And though you might have some procedures implemented, blockchain adds another security level that increases data safety.
Encrypted And Validated Processes
Proper encryption and validation are two critical security features of blockchain technology. First, encryption ensures the data remains unusable to individuals trying to access it without a key. Second, validation keeps the inserted information valid and accurate.
Before the data enters the ledger, all network nodes must reach a consensus about its validity. As a result, digital menaces like malicious code, trojans, and backdoors can no longer pose a threat.
Decentralised Solution
When using blockchain security solutions, data is spread across several locations. More precisely, it remains stored on all the devices within a network. Unlike centralised cloud storage, each unit holds a separate copy of the same data.
For a transaction to happen, most of the devices must confirm it. Hence, a hacker would need to take control over half of the network to corrupt the data. So, even if one unit malfunctions or someone tries to record false data, the blockchain won’t get affected. Instead, the other devices will “outvote” the attempted corruption. Overall, decentralisation makes blockchain ultra-safe.
Secure Payments
A blockchain is an ideal tool for securing online payment methods. Embracing the technology will fortify your business security and the payment processing system. The more secure your payment platform, the more trust it builds with your customers and partners.
Nearly Hack-Proof
Robust blockchain security solutions are virtually immune to hacks. Thanks to the decentralised technology, simultaneously attacking even hundreds of nodes is futile. The tech also has tamper-proof encryption, making it impossible to hack a node. Finally, even if someone breaks into the network, steals data, alters it, and inserts it into the ledger, the attempt would be unsuccessful due to the lack of valid keys.
Who Is Using It And Where?
While building a blockchain platform for your business, consider security at all layers. Also, ensure you manage network governance and permissions. A comprehensive security strategy will include traditional and technology-unique controls. Most blockchain security solutions have the following features:
- Data privacy;
- Identity and access management;
- Secure communication;
- Transaction endorsement;
- Key management;
- Smart contract security.
Hiring an expert provider to design a compliant solution will help your company grow. Whether you’re a retail shop, run an online business, or operate branches in the entertainment industry, blockchain security is essential.
How To Improve Your Company’s Security?
Given the pace at which new blockchain security threats appear, businesses of all sizes must level up their virtual infrastructure and protect their blockchain activity. Adhering to the best practices in cybersecurity is the first step towards safeguarding data stored in blockchain networks.
The ways people store sensitive information constantly evolve. Hence, knowing how to protect your data is imperative. Therefore, consider implementing the following measures to boost the blockchain security solutions offered by your provider:
- Avoid getting hacked by never sharing your keys with other people.
- Get a VPN to encrypt all internet activity and deflect routing attacks.
- Never alter blockchain data because your user permissions can get revoked.
- Learn how to recognise phishing attempts.
- Be extra wary of unwarranted and suspicious messages.
- Always keep devices attended to prevent access from malicious parties.
NextHash Offers You Top-Notch Blockchain Security Solutions
NextHash is your long-term partner that paves the way to 100% safety for your company’s data. It offers advanced cybersecurity and blockchain security solutions, including penetration testing and security audit.
Engineers at NextHush ensure our applications cover real-life attacks and vulnerability exploitation across your blockchain network. They conduct in-depth analysis, a thorough code audit, and testing. Moreover, our solutions spot business logic errors and address payment manipulation flaws and misconfigurations.
No vulnerability associated with your payment system will go unseen. To do so, we also equip you with a collaborative dashboard where you can find detailed reporting and troubleshooting steps. Finally, our support team is available 24/7 for any doubts or uncertainties you might have.