Cryptocurencies and blockchain technology are out to disrupt or shake the system – but in a good way. This so-called disruptive type of financial technology aims to eliminate the middlemen and regain control of your own money or even the creation of your own coins for that matter. The science known as cryptography enables creation of currencies in a secure platform.
With the emergence of cryptocurrency, global transaction will be sped up and is bound to be more secure and cost-efficient as the control is directly in between the parties involved which cuts down of processing time and fees altogether. This is also not affected by any changes or fluctuations in government regulations as well as exchange rates.
The Edge of a Decentralized Platform
Cryptocurrency is not just focused on financial transactions or currencies but it has a wide coverage which spans from that of creating a decentralized platform, securing personal data, identity protection, and the like. This has been the primary purpose of the birth of blockchain technology.
Yes, there are multiple uses of blockchain technology but identity protection or security is what is getting the most traction in terms of popularity and priority among developers and the community itself.
Blockchain technology is now used in different applications such as in birth certificates, digital identities, wedding certifications, passports, and other IDs.
Blockchain focuses on securing data by getting rid of some centralized points that are often targeted by cybercriminals or hackers online. These series of blocks record data with timestamps to ensure that the stored data cannot be tampered with by anyone. This then eliminates the possibility of manipulating data and secures all channels.
Blockchain Technology – Security Shield for Your Data
Experts on cyber security believe that the integration of blockchain technology can be used as primary form of cybersercurity shield. In fact, blockchain technology which is the backbone of cryptocurrencies like bitcoin can be used to prevent any attempts to tamper, hack, or hijack the system such as in aircrafts, satellites, or in different vehicles. This also, in effect, enhances the overall security protocol of the U.S. military.
Cryptocurrencies are made secure with blockchain technology that performs like a ledger which records and sends all changes made on database to users. In this way, with data copies in users’ hands, the entire database remains safe and intact.
Blockchain technology is popular for its decentralized or tamper-proof feature that has gone beyond the function of mainly supporting different digital transactions. Now, blockchains are used to speed up business processes, strengthen security, while also cutting down on costs.
Challenges of Cryptocurrency
Blockchain is different in the sense that it has its vantage point among other existing systems. However, there really is no perfect system. Evidently, this new technology also has its weaknesses and challenges when it comes to regulations and compliance that needs to be addressed as soon as possible.
Regulatory issues like compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) are the pressing issues faced by cryptocurrencies. This is however appeased with the increasing acceptance and support placed by large and established corporations.
Strengthening Security with Blockchain Technology
The use of blockchain technology can change the phase and pace of the security industry as it addresses global security concerns. The integration of blockchain technology does not just help decrease the costs but also strengthen and secure online transactions as it block problems associated with breach in data security, fraud, double spending, and chargebacks.
This helps authenticate user identity and also devices without the use of passwords. The mathematical verification or the use of blockchain-based SSL certification guarantees the integrity of all transactions. This also eradicates end-to-end encryption which is the common culprit for espionage and leakage of information. With blockchain technology in place, communication is stored in a distributed ledger which cannot be hacked from a centralized point. With two-factor authentication in place, the network structure is protected from any security hacking or breaches. This also eliminates the linking of email addresses or giving out of personal data which enhances its privacy feature.
The use of cryptocurrencies in effect is likened to creating an impenetrable digital fence around your vital information, identity, and financial transactions. This eliminates human error and automates processes as well as protection of user data.