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Learn about the intersection between cybersecurity and blockchain to better prevent cyber attacks!
Deb Mukhuty
Learn about the advantages and challenges of blockchain to address the growing concerns related to safety against online attacks!
Remember the story of Michael Calce, a.k.a. MafiaBoy? Responsible for one of the most damaging cyberattack incidents, Michael created history in 2000! Merely at 15 years old, this Canadian high school student decided to unleash a DDoS attack on high-profile commercial websites such as Amazon, eBay, CNN, and Yahoo, resulting in a damage of $US 1.2 billion dollars!
Even recently, on October 30, 2023, there was a ransomware attack on IT service provider Südwestfalen-IT (SIT), Germany. This lost connection to the outside world, affecting more than 110 municipalities and organizations.
Given the constant threats to data and privacy, there is a dire need for cybersecurity in the digital age. It helps in several factors, including protecting sensitive information, preventing unauthorized access, safeguarding national security, and ensuring business continuity. It also fosters trust in digital systems and promotes innovation.
Blockchain can become a cybersecurity solution by offering a decentralized and tamper-resistant ledger. Its cryptographic principles ensure that data storage and transactions are secure, thereby reducing the risk of unauthorized access and hacking. Blockchain increases the resilience of systems by addressing key cybersecurity challenges.
Blockchain is a shared, immutable ledger that helps track assets and record transactions in a business network. It stores data in blocks, and these blocks are linked together in a chain. Blockchain allows all crypto assets to be transferred securely and quickly.
The core features of blockchain include:
Blockchain achieves data security through cryptographic principles using advanced algorithms that ensure integrity, confidentiality, and authenticity. Some of the key elements are:
Hash functions: Cryptographic hash functions like SHA-256 help convert data into a fixed-length string of characters (hash). By generating a unique hash for each set of data, it ensures data integrity.
Public-key cryptography: Public-key cryptography consists of public and private keys. Data that is encrypted with a public key will only be decrypted with the corresponding private key. The vice-versa is true as well. This ensures secure data transmission.
Digital signatures: In blockchain, digital signatures are used to authenticate transactions. In this process, a private key is used to sign the digital transaction, while its corresponding public key helps authorize the sender.
Consensus algorithms: In blockchain, consensus algorithms ensure agreement among the participants of a decentralized network. It includes Proof of Work (PoW) and Proof of Stake (PoS).
Merkle trees: Merkle trees are cryptographic structures that enable secure and efficient verification of large data sets. Merkle trees summarize and link transactions.
Smart contracts: These digital contracts are stored on a blockchain and are automatically executed when predetermined conditions are met. Smart contracts help in simplifying business between both identified and anonymous parties.
Zero-knowledge proofs: A zero-knowledge proof, in blockchain technology, enables one person to convince another that a particular claim is valid, but without disclosing any of the details about the claim itself. It provides simplicity, security, and saves time in blockchain transactions.
Elliptic curve cryptography (ECC): ECC generates public and private key pairs. It applies to key agreements, pseudo-random generators, and digital signatures.
Source: Cloud Credential Council
Now that we have a detailed idea of how blockchain works let us look at the evolving nature of cybersecurity threats. As constantly evolving technology advances, cybersecurity threats are also constantly evolving. Some of the prominent threats include:
Data Breaches: Data breaches happen when there is unauthorized access to sensitive information like personal identifiable information (PII), intellectual property, or financial data. Cybercriminals target large databases, and they exploit vulnerabilities in networks or applications.
Ransomware Attacks: Ransomware has evolved from simple attacks to targeted campaigns where high-profile corporations are chosen. Data recovery has become more challenging due to advanced encryption algorithms.
Phishing refers to tricking individuals into revealing sensitive information like financial details or login credentials. It can be via emails, tailored messages, or SMS.
Emerging Threats: Some of the emerging threats include -
Supply Chain Attacks: Supply chains are targeted to compromise organizations indirectly. This includes infiltrating software vendors or service providers to gain access to customers.
IoT Vulnerabilities: Insecure IoT devices can be misused to gain access to networks or launch DDoS attacks.
AI-Powered Attacks: Cybercriminals may leverage AI or ML to evade traditional security measures and create more sophisticated attacks.
Traditional cybersecurity measures face various challenges in protecting against cybersecurity threats. Some of these challenges are:
Use of sophisticated cyber threats by highly skilled groups
Zero-day exploits that target vulnerabilities
Intentional or accidental insider threats
Increasing use of personal gadgets and remote work
Cloud security challenges
Lack of user awareness
Data encryption and privacy concerns
Budget constraints for investing in cybersecurity technologies
Speed of adversarial innovation
Over reliance on signature-based detection
Blockchain technology can enhance cybersecurity in several ways. Some of them are:
Decentralized architecture: Decentralized architecture means there is no single point of control, making it more difficult for hackers to attack and compromise the system.
Immutable records: The data stored on a blockchain is immutable and cannot be altered or deleted. This helps prevent data tampering and ensures the integrity of the data.
Public key cryptography: In blockchain technology, each user has a unique and private key, and transactions are signed with the user’s private key. This makes it virtually impossible for anyone to alter the transactions.
Smart contracts: Smart contracts automate complex processes and enforce rules without intermediaries, making them ideal for applications that require trust and transparency.
Distributed denial-of-service (DDoS) attacks: Using a distributed architecture, blockchain networks can resist DDoS attacks by distributing the load across multiple nodes.
Source: Microsoft
The following are some companies that have applied blockchain technology in various areas of the cybersecurity realm:
Coinbase: Coinbase runs entirely on encryption. The company stores wallets and passwords in a secure database and requires employees to undergo a rigorous background check, all to ensure their crypto is safe.
MobileCoin: MobileCoin’s crypto replaces third-party transaction vendors and keeps all transactional data between two peers encrypted.
Javvy: Javvy built a universal “wallet” that stores and trades cryptocurrencies and tokens. Javvy’s app helps users manage their growing crypto stashes more securely.
Founders Bank: Founders Bank aims to be the world’s first decentralized bank. The company employs decentralized storage methods, an extensive public ledger system, and encryption methods to ensure cryptocurrencies are traded and stored securely.
Source: Founders Bank
Despite the benefits, blockchain in cybersecurity has some potential challenges and limitations. These are:
Scalability issues: The speed and efficiency of transactions get impacted as the size of the blockchain increases.
Regulatory hurdles: Uncertainty about regulatory and legal frameworks surrounding blockchain technology and cryptocurrencies can hinder widespread adoption.
Complexity of implementation: Blockchain technology needs a shift in storing and managing data. Integration with legacy systems and developing expertise in blockchain technology can be challenging.
Environmental impact: Some blockchains use proof-of-work (PoW) consensus mechanisms that require significant computational power. This leads to high energy consumption and has sparked discussions about environmental sustainability.
Lack of standardization: The lack of widely accepted standards makes it challenging for organizations to adopt blockchain solutions.
Given the current developments, the future of blockchain in cybersecurity seems promising. Some key trends and opportunities include:
Interoperability: Efforts are being made to establish interoperability standards among blockchain networks to enable seamless data sharing and collaboration. This shall enhance cybersecurity capabilities.
AI and blockchain integration: AI combined with blockchain can enhance cybersecurity by enabling anomaly detection, intelligent threat detection, and predictive analytics.
Blockchain in IoT security: Blockchain can be crucial in securing IoT ecosystems by providing a decentralized infrastructure for managing data integrity, device identities, and secure communication.
Blockchain-powered cyber threat intelligence: Blockchain technology can facilitate the verification of cyber threat intelligence among organizations. This enables more effective responses to emerging threats.
Source: ResearchGate
Cyber attacks can target both large corporations as well as small businesses. Even individual users are affected by it. The threat constantly evolves, and cybercriminals find innovative ways to exploit vulnerabilities.
Hence, given the effectiveness and development of blockchain, it should be used to prevent cyber threats. Blockchain's decentralized trust, immutable ledger, and transparent transactions are potent defenses against cyber threats, thereby fostering data integrity, authentication, and a secure digital environment.
So, if you are a blockchain or cybersecurity connoisseur, follow the details in this article to explore how blockchain helps develop cybersecurity strategies!
What is your take on the use of blockchain to prevent cyber attacks? Let us know on Linkedin, Facebook & Twitter!
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