There has been an increase in the use of blockchain technology in recent years. This is as the crypto market has risen to the spotlight. Blockchain is intended to provide unmatched security for digital data. This as a result is one of the reasons for its rapid adoption. But what is blockchain security?
What Is Blockchain Security?
Blockchain technology enables organizations and users to process and store data. Present in the blockchain network is structured distributed blocks that allow the processing and storage of data. Each new block records one or more transactions that are linked to all of the previously available blocks. The recording is in the form of a cryptographic chain.
A thorough risk assessment is conducted for a blockchain system or network to ensure its security. This is known as blockchain security. To ensure blockchain security, secure coding practices, security testing methodologies, and cybersecurity frameworks are implemented.
These implementations are done to protect blockchain solutions from breaches, online frauds, and other online threats.
Blockchain Security for Organizations
It is important to think about security and how to manage permissions and governance at all technological stack tiers when developing organization blockchain applications. For an enterprise blockchain solution, a detailed security strategy involves the use of traditional technology-unique controls and security controls.
Examples of some security controls peculiar to an organization's blockchain solution include:
· Data privacy
· Key management
· Identity and access management
· Transaction endorsement
· Smart contract security
· Secure communication
As an organization, employ professionals to help you design a secure and compliant solution. This will ensure that you achieve your business goals.
It is equally important that you choose a technology environment and look for a production-grade platform for creating blockchain solutions. You should be able to deploy this platform whether it is with your preferred cloud service provider or on-premises.
Top Blockchain Security Examples
There are several security benefits to blockchain technologies. However, with every technology comes user errors and opportunities for malicious attacks. In a world of decentralized applications and distributed record-keeping, organizations must mitigate cyber threats to their proprietary assets and far beyond their walls.
Below are examples of how organizations and companies are conducting blockchain security.
This software firm thinks blockchain is perfect for the Internet of Things (IoT) because the built-in ledger technology eliminates single points of failure and encrypts private data.
Given the steady growth of the IoT, this concept is important. If blockchain technology takes over as the preferred IoT network, its popularity and utilization will increase.
Digital currency can be purchased and sold on Coinbase. Coinbase operates purely through encryption and keeps passwords and wallets in a safe database.
To protect the security of cryptocurrencies, employees must go through a thorough background check.
3. Hashed Health
This Tennessee-based healthcare innovation company seeks to assist the healthcare sector in adopting blockchain technology. Each entity in the company, Hashed Collective, Hashed Enterprise, and Hashed Labs, focuses on a different area of blockchain technology.
In order to create secure digital blockchain networks for the exchange of patient information and private internal communication channels, Hashed Health has partnered with numerous hospitals and healthcare organizations.
4. J.P. Morgan
The largest and one of the most well-known financial organizations in the United States is J.P. Morgan. It has created Quorum, an enterprise-focused variant of Ethereum that processes confidential transactions using blockchain technology.
J.P. Morgan creates transparent yet cryptographically secure transactions using smart contracts on their Quorum network.
5. Lockheed Martin
The first business of its sort to use blockchain security is this US-based defense contractor. In order to implement blockchain cybersecurity protocols in engineering systems, software development, and supply chain risk management, Lockheed Martin is collaborating with the cybersecurity firm Guardtime Federal.
The objective of Lockheed Martin is to employ blockchain to secure each stage of its weapon development systems.
Mobilecoin is a cryptocurrency company developing a user-friendly, secure cryptocurrency for businesses that cannot independently afford to implement ledger security measures.
Since all transaction data is encrypted on both ends, Mobilecoin's cryptocurrency eliminates the need for third-party transaction providers. The product integrates well with Signal, WhatsApp, and Facebook Messenger.
What blockchain security is all about is being able to recognize network risks and manage them. The plan for adding security to these controls is the basis of the blockchain security model. To adequately secure your blockchain solutions, you must create a blockchain security model.
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