Following the 2017 AICPA Engage Conference in Las Vegas, one topic has been the center of discussion: Blockchain. Previously associated with online currencies such as bitcoins, blockchain has now grown to acquire investments in the billions. According to Google Trends, ‘blockchain’ has reached its peak search interest this past month since its first recorded interest in 2012, thus illustrating its popularity and emergence into commercial use. With cybercrime still rising, many industry leaders believe blockchain could be the future of new security tactics through decentralized cryptography. However, many still do not understand blockchain and its full functionality.
What is Blockchain?
Blockchain is an alternative technology used to manage, exchange, and store data. Due to its decentralized, distributed ledger infrastructure, blockchain’s transactional activities are transparent and unmodified, making them exceptionally secure. As a product of research and breakthroughs in cryptography and security, this new technology allows organizations to move assets quicker and safer.
Using blockchain enhances security by improving reporting through:
- Identity protection
- Data integrity
- Infrastructure defense
The New Method for Security
While blockchain currently exists in financial contexts, many industries including healthcare, manufacturing, and even the government can reap the security benefits. There are different types of blockchain, including public, consortium, and private. Blockchain can provide greater control variables, allowing organizations to have greater visibility over their ledger, transactions, and data. This is beneficial for organizations wishing to cut costs by removing third-party vendors that verify transactions. Thus, blockchain can mitigate fraud and cybercrime risks by eliminating the potential security and privacy trade-offs.
As stated by IBM, major benefits of blockchain are:
- Irreversible nature
- Low per-transaction cost
- Broad availability and global reach
The Future is Now
The continuous shift toward this cryptography solution is inevitable, and commercial blockchain is quickly entering beta stages. Organizations such as Microsoft and Dell are investing in blockchain research as a replacement for auditing needs. As this trend develops, organizations will learn more information about the exact capabilities and limitations of blockchain.
Although blockchain is resilient and may seem impossible to penetrate, it’s important to acknowledge that blockchain is still an emerging technology, meaning that there is still a possibility for unknown security risks and challenges to overcome.
To learn more about blockchain or the security solutions A-LIGN offers, contact us at [email protected] or at 888-702-5446.