Blockchain & Data Security
Travelex, a market-leading independent foreign exchange business, has recently experienced a ransomware cyber-attack, which is believed to compromise over 5GB of sensitive customer data. According to Info Security Magazine, the cyber-attack could go unnoticed for over six months, which brings a question: “could blockchain be a solution used by enterprises to forte their data security system”?
According to media, the data breach could cost Travelex a whopping amount of £4.6 million to recover and preserve the data from further exposure and resale on the dark web. The owners of the ransomware attack claim that they are in possession of Travelex’s customers’ data including names, phone numbers, addresses and bank details, which could have a catastrophically huge impact of Travelex’s future. Moreover, Travelex’s customers have been left with no money they put on Travelex ATM cards, which provoked even bigger outrage for Travelex’s IT security strategy.
Is it time to ditch legacy IT systems in favour of blockchain?
Unfortunately, Travelex data breach scandal isn’t one of its kind. According to the RiskBased Data Breach QuickView Report 2019 Q3, at the end of September, there were 5,183 breaches, exposing 7.9 billion records. Compared to the 2018 Q3 report, the total number of breaches was up 33.3 percent and the total number of records exposed more than doubled, up 112 percent.
When it comes to strengthening your business data security strategy, blockchain technology is a game-changer. A simple take on blockchain is that it can be applied to any activity that requires a database, and it follows that blockchain software brings to bear tools that tackle data management issues, particularly around security, privacy and authentication.
Thanks to its decentralized structure, there is no a single point of failure for cybercriminals to hack; instead, all network participants receive a small bit of information (hash), which eliminates the need for a central server. As all records are stored on individual blocks distributed among the entire network, the data system becomes difficult to tamper because a hacker would need to change the block containing that record as well as those linked to it to avoid detection.
Additionally, blockchain is secured through a variety of mechanisms that include advanced cryptographic techniques. Cryptography converts data into a format that is unreadable for an unauthorized user, allowing it to be transmitted without unauthorized entities decoding it back into a readable format, thus compromising the data.
Would blockchain fit my business structure?
The answer is yes. At KompiTech we help out growing customers by developing their own, private (enterprise) blockchain solutions that are bespoke crafted to meet their business purpose. Blockchain technology can be used to, for example, safely host and exchange the medical records, ensure fair and transparent trade, or to simply act as an immutable CRM of business customers.
We offer a free consultation to all our clients to validate your blockchain use case idea – contact us below for more information.
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