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What Is Blockchain And How Can It Keep Your Data Safe?

What is Blockchain?

blockchain is a distributed database maintaining a frequently expanding list of records that are securely stored from tampering or revision. It consists of data-structure blocks that contain data or programs, with each block storing batches of individual transactions and the results of any blockchain executables. Every node is stored in a decentralized system and has a copy of the blockchain. There is no “official” copy that exists in any centralized system and no user is given more access rights than the other.

Data Security is no longer an afterthought or luxury, most of our private, personal, and sensitive information is stored and transmitted online daily, tight security is now a necessity for everyone. With so much more of our lives being online, we are starting to hear so much about data breaches and hacks than ever before. We are going to take a look at how Blockchain technology can enhance current centralized data security solutions, and help keep us safe and in control of our data.

Let’s take a look at how Blockchain can protect your data:

Encryption and Validation

The blockchain platform ensures that data is encrypted, making data modification a difficult task. You can also save a cryptographic signature doc or a file on Blockchain. This gives users a way to make sure files are not tampered with, without having to save the entire file on the Blockchain. Because  Blockchain is decentralized, you can always cross-check file signatures across all the ledgers on all the nodes in the network and verify that they haven’t been revised. When you look at the file, you can be guaranteed that it is the same version of the document that existed previously. If someone has changed a record, then the signature will be rendered invalid. Blockchain offers highly reliable data verification which can be trusted.

Difficulties in hacking

Blockchain is a chain of digital “blocks” containing loads of records and transactions. Because these records and transactions are not contained in a central location, blockchains do not have a single point of failure and cannot be revised from one computer. Records are decentralized and distributed ledgers across peer-to-peer networks that are frequently updated and kept in sync. Each digital block is connected to all the other digital blocks before and after. Hackers can break into traditional networks and find all the data in a single repository and extract or corrupt it, the blockchain makes this really hard.

Decentralized way of securing data

As mentioned above Blockchain is a decentralized technology it does not depend on a single central point of control. The best way to explain it is: it is a digital ledger of transactions with all the computers having the entire copy of the data. A lack of single authorized access makes the system more secure and fair. Blockchain uses advanced process protocols across a network of nodes instead of depending on a centralized system authority to securely transact with other users, validate transactions, and record data without it getting corrupted. As blockchain is a ledger of data it is very important that the information being stored is truthful and accurate. The data is saved on multiple computers rest assured it is highly secured even if one or two computers malfunction.

Blockchain is a growing technology worldwide, blockchain is now the perfect solution for companies to store data. The biggest benefit of Blockchain for companies is that it’s not just highly secured but it is also very reliable and transparent. Contact Commercient today to take the first step of securing your data, improve the security of your digital transactions, and optimize operations.

Why Blockchain Is the Next Big Thing for Small Business

Have you ever heard of the term “blockchain?” Experts predict that it will have a major impact on the global economy; indeed, some say it’s the biggest technological breakthrough since the internet. Everyone both in the financial and non-financial industries is buzzing about it. So what exactly is blockchain?

What is blockchain?

According to the Harvard Business Review, “With blockchain technology, the core system that underpins bitcoin, computers of separately owned entities follow a cryptographic protocol to constantly validate updates to a commonly shared ledger. A fundamental advantage of this distributed system, where no single company has control, is that it resolves problems of disclosure and accountability between individuals and institutions whose interests aren’t necessarily aligned. Mutually important data can be updated in real time, removing the need for laborious, error-prone reconciliation with each other’s internal records. It gives each member of the network far greater and timelier visibility of the total activity.”

Often equated to digital spreadsheets that can be shared amongst many, blockchain technology can provide several benefits for small businesses. We have enumerated them below.

Improve security of transactions

For small businesses, the beauty of blockchain technology is that it is a distributed ledger – that is, there is no middleman or company who owns the data set. Instead, information is listed across a distributed network, whereby everyone in the network can validate the accuracy of the central ledger using their own copy. Users are in complete control of all their information and transactions and there is no central point of failure, therefore it makes it easier for you to avoid malicious attacks.

According to Nasdaq, “Even if a hacker is able to penetrate one network and attempts to steal funds, there are multiple redundant copies of the same ledger stored around the world. If one is tampered with, the others could be used as a backup to prove what funds actually belong in each account.” Forbes says blockchain is a technology which “offers a built-in mechanism for trust” for small businesses. In other words, blockchain keeps your business transactions secure.

Streamline businesses processes

Another benefit blockchain provides small businesses is that it can help streamline business processes. The process of clearing and settling a bank transaction can take days, but with blockchain technology, since the middleman is absent from the equation, transactions are able to move more quickly. This enables more transactions more quickly, allowing you to access your money more rapidly.

Smart contracts,  for instance, are a type of blockchain technology that controls the transfer of digital currencies. According to Blockgeeks, they help you in several ways.  “[You] exchange money, property, shares, or anything of value in a transparent, conflict-free way, while avoiding the services of a middleman…You’d ordinarily have to spend chunks of time and paperwork to manually process documents. Smart contracts use software code to automate tasks, thereby shaving hours off a range of business processes.”

Ultimately this means that you are not only able to make your organization more efficient, but also cut costs in the long run.

Conclusion

The benefits that blockchain technology can provide for small businesses are quite impressive. It can help you and your small business improve the security of your digital transactions, optimize operations and cut costs. If you are a small business, it’s certainly a technology worth investigating, particularly if security is a priority. If you’d like to learn more about blockchain, check out this  Blockchain Technology whitepaper from UC Berkeley.

 

Commercient can help you optimize your business processes, as well. Contact us today to find out how,