The rate at which technology is evolving is mind-blowing. We no longer live in a nine-to-five world, but rather in a fully operating 24/7 space. The consumer is not local, but his/her reach is already global.
Digital transformation has become a natural step in modern enterprise development. One of the many branches of up-to-date technological tendencies is Blockchain. It is expected to change everything dramatically.
Worldwide spending on blockchain systems is expected to grow from $1.5 billion in 2018 to an estimated $11.7billion by 2022.
Briefly on Blockchain security features
It is probable, that the appropriate application of blockchain technology can solve problems on many fronts. It promises many opportunities and interesting ways to use it like various applications in the financial services industry, providing displaced populations with a way to maintain identity records and land record management.
However, from the perspective of information security, every new technology opens up a Pandora’s box. Be it governance, risk management or an assurance professional’s role.
What are the most effective ways information security can use blockchain technology?
Blockchain is a distributed record. The simplest things that can be done with it, is to identify what data is to be recorded for each transaction. Also, it is important to ensure the establishment of a strict blockchain algorithm and rules governing it. This will mean that all relevant details will be recorded for establishing an audit trail. Thus, from a regulatory perspective, all future analyses will withstand necessary scrutiny within any given enterprise.
The data is encrypted and cannot be changed by any other entity. With the right configuration and cybersecurity, algorithms of the blockchain create an ironclad forensic trail. From the business process perspective, this means that frauds, scams, and violations can be prevented beforehand.
The positive side of this new technology is that with advanced configurations of blockchain’s efficiency of contracts and problem-solving ties in with specific circumstances. This will automatically ensure that any kind of suspicious transactions is subject to special inspection, both within the business process and from an audit perspective.
Blockchain technology can also be used to track the use and distribution of all kinds of copyrighted content: music, books, and movies. This will enable the usage security in other areas in the enterprise that need protection thus, keeping with the confidentiality-integrity-availability (CIA) and forming the cornerstone of information security.
In many instances, blockchain can be used, to ensure data integrity, manage the identity of users, use tokens to build trust among all the parties involved and bring about business process efficiencies. By decentralizing the record keeping it will reduce the need for interventions in processes required for authentication.
At the end of the day, the enterprise has to identify all challenges, opportunities, risks, threats, and vulnerabilities from the use of blockchain technology. This will ease the implementation of blockchains that allow enterprises to accumulate the strategic advantages such adoption promises, including the rise of new business models and value chains. There will always be risks that need to be managed. The security audit should be capable of supporting the enterprise in effectively reducing all possible dangers. This will enable enterprises’ usage of blockchain’s full potential. Thus, allowing organizations to remain resilient in the face of emerging threats and vulnerabilities.