11 June 2020

Blockchain gets stronger and stronger every day. It draws attention to new fields almost every day. And there is a reason why – who would not want transparency in their space? There are no shady deals, no secrets, nothing to hide in any corner. As safe as it is, blockchain is gaining even more ground than you might have guessed. its immutability also adds up to a lot – the fact that previous records cannot be changed is charming for some industries. When one asks “what industry has not explored blockchain yet?” there are very few who have not had it done. Yet, there is a particular field that could use the blockchain: cybersecurity.

Cybersecurity Issues within the Industry

The topic of cybersecurity is a big issue within the crypto community. We have seen many exchanges getting hacked and millions of users losing their crypto. We have seen some 51% attacks leading to losses and double-spent tokens. We have even seen some other easier to explain examples such as someone forgetting their 12-word seed phrases. Truth is, there is a whole issue around security. It’s a recent technology and it’s quite complex – we cannot ignore the problems it can bring.

These computer security problems do not only occur in the blockchain. They occur much more easily in other industries. These security problems have led 48% of users to stop using any service that has had a data breach. Basically put, consumer trust – or lack of it – is a make-or-break for many companies. Lack of confidentiality, privacy, or password control are some of the biggest security problems on different platforms.

These problems are human errors in programming – and human mischief that takes advantage of this. These problems are reduced as time goes by and you have more resources to combat them. Once these problems are sorted out, we can start talking about how to solve more complex problems.

How blockchain solves cybersecurity problems

Yet, one can already talk about how the blockchain can help here. The blockchain could provide proof of authorship and authentication of origin. With this, you could configure that unregistered IPs cannot create or alter the registry. This would improve the proof of authentic usage for commerce between different companies.

This gives the power or licenses to the exclusive distribution networks only to those authorized. This can be done through smart contracts. The blockchain could also bring some clarity to the issue of copyright. Every time someone uses an item registered in the blockchain, that will be registered. This entry will have detailed information on the date, time, and who used it. This can improve the management of the intellectual property in the web 3.0.

In fact, there are already different proposals working with blockchain for computer security. One of these many is Remme. Remme is a public key infrastructure proposal for the web 3.0.

Remme is a decentralized open-source system. It aims to create a new security standard based on the blockchain. The way they plan to do this is by replacing users with SSL certificates. Being decentralized, it would create individual IDs to manage the digital keys of each user. This would connect information between apps, browsers, and servers. They plan to give incentives to trusted members and sanctions dodgy accounts.

Similar is the case for Cambridge Blockchain. They develop identity management software for financial institutions in the blockchain. They provide an identity and compliance framework for financial institutions. Then, it connects the identity owner to services providers and trusted parties only. This ultimately gives control of identity data to the end-user. So impressive is this approach that PayPal decided to invest in it in 2019.

All in all, being such a new technology plays against the blockchain. There are still many unresolved issues around it. Yet, the potential to solve existent problems is bigger than the risk involved. Solving our cybersecurity issues with the blockchain might be one of the groundbreaking chances of our times. When the risk-reward ratio is so well defined, there is only one thing to do: that is to take the chance.

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Edmund McCormack
Tech industry veteran and blockchain technology investor. Simplifying cryptocurrency for almost a decade.

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