The internet is an ever-growing platform that encompasses every part of our daily lives. Between our personal and working lives, the internet makes up a great deal of how we communicate, market, campaign, and manage ourselves, brands, and businesses through various platforms accessible via the internet. Yet, if the last few years have proved anything, the internet is far from faultless. The more concerning part is that many of those flaws harm the users, including their finances and privacy.
What are the most common flaws on the internet?
The most significant concerns with the internet so far are:
- Cyber attacks: A cyber attack occurs when hackers infiltrate a computer’s system or network, often to steal vital data like bank information or valuable passwords.
- Data mistrust and leaks: This happens when a person’s private data gets leaked without the person’s consent, which is one of the most common issues these days, and it can happen with or without getting hacked. It can lead to the theft of money, identity, and sometimes much more critical data.
- Network failures: This includes issues like stunted video conversations, sluggish program or data transmission, delayed downloads, poor VoIP clarity, and no internet service, which can occur for innocent reasons like router trouble or extra-heavy network usage, or it could indicate a security breach, bringing us to the next issue.
- Security breaches: Any event that leads to unlawful entry to computer data, systems, connections, or equipment is referred to as a “security breach.” This kind of attack can result in a data breach, a virus/malware infection of your computer, a cyber attack, remote control of your computer, and many such distresses.
The most common reason behind most issues regarding the internet is its lack of identity and authentication mechanisms. Passwords and databases often contain private information that is comparatively easy to hack, especially when several accounts or servers are secured with only one password. It may sound like a big leap, but it is the reality that blockchain technology can offer viable solutions to all these issues and, at the same time, can make the whole process super convenient for the users.
So what is blockchain technology?
What is blockchain technology? How does it work? We’re sure you have tons of questions about it. Let’s delve into those queries before delving deeper into how this technology revolutionises the internet world.
A “blockchain” is essentially a compilation of time-stamped “blocks” containing digitised information stored in a common repository (or “chain”) using a hashing algorithm. This digital data consists of transaction data, member data, and specific information (hash) that distinguishes the blocks from each other.
Before being entered into the blockchain register, all incoming data is reviewed by a multitude of peer-to-peer computers (or “nodes”), making it decentralised. Thanks to numerous levels of cryptographic encoding, a blockchain ledger is immutable, permanent, and incredibly safe. Moreover, even though all blockchain system activities are open to the public, network participants enjoy strict confidentiality.
So how can blockchain technology help make the internet safe and secure?
There are many ways in which blockchain technology aims to improve the internet and its overall security measures. The most significant ones are described below:
- Enhanced data security:
Data is the most valuable currency in the new world we live in. Yet, as of 2020, cyberattacks on critical infrastructure are rated the fifth top risk to global stability by the World Economic Forum. As per a study by IBM, globally, a data breach has cost organisations a whopping 3.86 million US dollars as of 2020.
You risk losing your identity, financial assets, and properties if your data is stolen. Even so, over a centralised system, all information is maintained in one location, making it exceptionally convenient for cybercriminals to exploit.
In contrast, in a blockchain system, your data is scattered across the network, prohibiting intruders from having a single entry point to the entire database. They can only break into the system if the whole infrastructure is undermined, which is nearly inconceivable in a peer-to-peer network with nodes all across the globe protected by the layers of encryption a blockchain technology-based solution provides.
Even if the individual succeeds in breaking into a blockchain-based framework, they will be unable to access the data because it is encoded, and only the original author of the data has the key.
- Extra-efficient data verification system:
Every time a new piece of data arrives in a blockchain system, it goes through p2p computer network-powered smart contracts that verify the data against the rules pre-fed to its program before adding it to the chain. This makes every single piece of information on a blockchain fully proof.
- One-time username and password, protected with top-notch blockchain security:
Blockchain will eventually eradicate the need to use a bunch of different usernames and passwords for various sites in the hope of staying safe. Sites usually ask for personal data to verify a person’s identity and prevent identity theft. In a counterproductive manner, this puts users’ private information at the mercy of the sites’ security infrastructure, which can make this information even more vulnerable. Blockchain-powered smart contracts could be the solution to all these troubles.
Smart contracts are the most efficient, economical, and trustworthy method of verifying credentials. Users can securely submit their documents and log in using their public keys on a permissioned blockchain-based framework once. This data is preserved indefinitely. Whenever users require access to their private information, be it for buying a product/service or utilising bank facilities, their details will go through smart contracts and be verified against the original data. Neither does the user have to feed their private information on various websites multiple times, nor can there be any doubts about the authenticity of such information as the data owner verifies it at the time of saving.
- Creating a borderless economy:
As we have discussed earlier, blockchain networks are decentralised, and the data is verified and recorded in a peer-to-peer process, which removes any central authority control over the data. Therefore, control based on country borders is also removed, making it open to all for access. Its secure anonymity can remove corruption but also racism, sexism, and other forms of discrimination. Also, blockchain-based decentralised finance, aka DeFi, is changing the world’s financial architecture by fragmenting expensive stocks into smaller, more affordable pieces for various financial classes in society, along with many other opportunities for inclusivity.
Protection from cyber threats is integral to our lives today, given that half our lives, if not the whole, are entirely digital now, with all our private and vital information like identities, bank information, and much more online. Blockchain technology is creating the silver lining that has been missing for a long time. With interesting use cases like NFTs, With DeFi, and the metaverse, there is a high probability that we will see a genuinely inclusive and borderless economy very shortly.