Supply chain transactions go through several parties with multiple systems in each party. Trade Bitcoin with Bitcoin 360 Ai offers numerous trading options and helps you start the bitcoin trading journey without any dedicated training. However, current technologies like barcodes and QR codes are insufficient to keep supply chain records safe, as a system breach compromises them. Blockchain is an emerging technology widely adopted by finance and tech companies to create more secure supply chains.
The below-listed portion will help you understand how Blockchain works and how people can use it to help prevent potential cyber threats from hitting your company’s sensitive data while also making it easy for all parties involved to see the progress made, which is crucial for accurate management of large amounts of data.
How much secure is your data on the Blockchain?
– Blockchain Technology
Organizations like IBM and Maersk have used Blockchain to manage and source finance over the supply chain. Still, authorities can also use it to create more secure digital data in industries like healthcare, shipping, manufacturing, and digital marketing. If a hacker could breach your digital data in any of the industries mentioned above without being detected, it would be catastrophic for your company’s brand image.
There are numerous high-profile blockchain projects, including IBM’s “Digitize”, Microsoft’s “Electron”, Maersk and IBM’s “Trade Lens”, and Walmart, which are already being used by the logistics industry.
Alongside the successful use cases of Blockchain technology in various industries, the data on Blockchain is highly secure because it is powered by a cryptographic structure, hashing algorithm and latest encryption techniques. The reason is that Blockchain is a distributed ledger; hence, it cannot be controlled or maintained by one central authority. Instead, it is maintained by multiple parties involved in a transaction, ensuring your data’s security on the Blockchain.
How does Blockchain maintain the security of data recorded in its ledger?
Every transaction recorded on the Blockchain has a unique hash value (id) used to verify and update the transactions that are stored on the Blockchain. Each transaction also has an expiration date to determine whether a new record needs to be added to the Blockchain.
For a hacker to make changes to the records, they would have to get access as one of the participating nodes in the network that maintains data on the Blockchain and maintain a copy of every record in existence at any given time. It ensures that only people with permission from one another can view, update, or delete any data on the Blockchain.
Role of cryptography and encryption techniques in the security of data on Blockchain:
Blockchain is a decentralized network, and as a result, it contains many potential attack points. Blockchain also stores all the public data, making it an easy target for hackers to break into and change the data stored on it. To protect its network from these attacks, Blockchain uses cryptography.
To protect its data from getting stolen or tampered with, Blockchain uses cryptography in 4 significant ways:
Hashing algorithm: Cryptography provides hash functions which are used with the original data before storing them in the Blockchain. Hash functions generate unique hash values of original data, which authorities can later use to verify or update the records.
Encryption Techniques: Cryptography is also used to encrypt the data stored on the Blockchain and ensure that only authorized people can view it.
Data Verification: Data verification techniques are designed as a way for blockchain nodes to update/alter the data stored in the ledger when a user requests it. The node must be a part of the network where certain transactions are recorded so that they can access all these transactions.
Data Integrity: Ensures that any changes made by hackers or unauthorized users after an initial transaction will not be able to corrupt other subsequent transactions in the chain.
Using the distributed nature of a blockchain ensures that all people and organizations involved have access to all the data stored on the Blockchain. Furthermore, each transaction on a blockchain is linked with every other transaction that has occurred since the initial one. The link between the transactions ensures that the transaction cannot be tampered with, and any changes will not affect subsequent ones.
The distributed nature of Blockchain ensures that only authorized individuals can view, update, or delete any data on it. This mechanism ensures that all those involved in a chain don’t have to rely on a single party to protect their data; they can do it themselves. Take These Simple Steps For Holding Bitcoins