Blockchain as a New Security Standard for Industries

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Click to learn more about author Mary Ann Callahan.

Everybody is into Blockchain nowadays. Even the people who don’t have a technical background started to realize its great potential and the opportunities it can create. That is entirely expected, as the Blockchain technology indeed has the power to change the world as we know it by altering the economy down to its core, thus creating innovative business models and solving big business problems. So far, the only use of Blockchain that has gained mainstream popularity is Bitcoin – the first digital token that has outpaced other assets in terms of price performance. However, once everybody realizes the potential that it offers, we would witness a revolution of a sort that would make this world not only more secure but more practical as well.

However, many are still not sure about one thing – is this a piece of groundbreaking tech secure? Do we risk being tampered with if our company decides to go full-Blockchain? Well, the answer is not quite simple, but there is an overall positive attitude not only among companies but among various other institutions such as banks and even governments. Many of them even tested it and understood that apart from the power to change the world, this piece of technology also has the ability to upgrade security to the next level. In fact, governments, companies, and all sorts of institutions have been testing out various applications of Blockchain in their operations.

Who Tested Blockchain for Security?

Banks and Blockchain

The banks were the pioneer institutions that got interested in this technology. Everybody was cautious at first, and these establishments had to put on extra care since they needed to test something that could potentially redefine the way they work. Contrary to the popular opinion that the banks are afraid of the Blockchain, many of them decided to adopt it.

Among the first to make thorough testing of Blockchain was the Bank of England. They wanted to separate the wheat from the chaff and get a better understanding of how it works. First of all, they conducted a POC (Proof of Concept) and gained a deeper insight into what is just hype and what the real potential is. The bank was pretty content with the results and even announced that they would implement Blockchain soon and that their payment systems would work on distributed ledgers.

Another bank that was interested in implementing this technology was the commercial bank of Qatar, which also has regional partners all over Arab countries. They came to the conclusion that Blockchain does not only increase the security but also adds to accuracy. Finally, the Chinese financial institutions were also very fond of testing Blockchain and announced that they would support it soon.

Governments and Blockchain

The governments also wanted to snatch the opportunity and test how Blockchain can positively affect their institutions and operations.

First of all, several states in the US have made significant progress in accepting and developing Blockchain. The state of Arizona even passed a bill that this new technology is completely legal along with the smart contracts. Furthermore, Nevada made similar steps even before Arizona and is now considering upgrading its operations with Blockchain.

Some countries that made significant progress in this aspect include Ukraine, Dubai, and Canada. Ukraine wants to implement the technology to track how state assets are sold. Furthermore, its central bank already has big plans for making a national currency based on the Blockchain technology.

Dubai is a leader when it comes to the use of Blockchain. They already tested it for security and accuracy over a wide range of areas, including shipping, business registration, health records, tourist engagement, and more. Furthermore, Dubai is definitely the country that invests the most in this technology, and they plan to create the first government in the world that would be entirely powered by Blockchain.

Finally, Canada is a country right after the UAE to explore the possibilities offered by the Blockchain technology. Its companies such as Peer Ledger have tested Blockchain and digital identities’ security in it.

Why is Blockchain Considered Secure?

So, what is it precisely that makes Blockchain more secure than some other technologies? The answer can fit into one word – cryptography. It makes sure that every transaction in a Blockchain is completely encrypted and chained to other records and transactions. Furthermore, all these records in the Blockchain are equally spread and accessible by all of those who participate in a distributed ledger. In other words, anyone who tries to hack into a transaction would also have to change all the previous Blockchain records.

Moreover, Blockchain uses an algorithm which requires all nodes to validate a transaction. Nodes are all computers in the network that maintain the distributed ledger. Just one entity would not be able to verify a transaction.

The most important thing about it is definitely transparency. Every participant can watch the transactions at all times. They can also choose whether they want to create a private or public Blockchain. When you take a step back and look at all these facts, you can see that this technology is indeed considered the safest and soundest digital capability at the moment.

What Will Happen in the Future?

No technology reached its peak at the beginning, and Blockchain is thought to be in its embryonic stage. In other words, people are aware that a better future is inevitable with the implementation of this technology in various industries, not only from the security perspective but also from many different standpoints.

Some organizations, companies, and countries are just more open towards it than the others. Otherwise speaking, those who still don’t consider using Blockchain are likely to do it when it becomes widespread and overall trusted. However, it’s quite unpredictable whether that will happen, and whether we as humans are ready to accept it. If it does happen, nobody can guess at what time it would become standardized. It could be a year… or a hundred years.

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