Cybersecurity and Blockchain: What are the prospects?
Blockchain can be defined as “a ledger, a large database that is simultaneously shared with all its users, all of whom are also holders of this ledger, and all of whom can record data in it, according to specific rules set by a highly secure computer protocol using cryptography.”
In other words, it is a large ledger in which data is encrypted and secured through decentralization and consensus processes that ensure the security of both the technology (through consensus) and the data (through immutable and decentralized integration).
Thus, it is clear that there is a connection between blockchain, data security, and IT systems security. But what concrete prospects does this technology offer for cybersecurity?
The Link Between Blockchain and Data Security
Blockchains are secured by several key elements: cryptography, a decentralized network, consensus mechanisms, and data immutability.
They use advanced cryptographic techniques, including public and private keys to sign and verify transactions, and hashing functions to ensure the uniqueness and integrity of the data. Operating on a decentralized network of nodes (computers), no single entity controls the entire network, reducing the risk of data manipulation or censorship, as the information is distributed among multiple actors. Blockchains also use consensus mechanisms, such as proof of work or proof of stake, to validate and add new transaction blocks to the chain. This process ensures that all transactions are approved fairly and securely by network participants. Once a transaction is recorded in a block and added to the blockchain, it becomes immutable, enhancing the transparency and trust in the integrity of the stored data. By combining these security elements, blockchains provide a reliable and secure environment for recording and managing digital transactions, making them a promising technology for various sectors like finance, healthcare, and logistics.
In the realm of cybersecurity, blockchain technology ensures essential transparency for effective risk management. It enhances user trust in cybersecurity solutions by enabling the verification of the accuracy and efficiency of recorded and accessible data. The transparency offered by blockchain provides a clear view of cybersecurity measures’ performance and facilitates access to reliable information on attacks by recording all events related to cybersecurity and risk management. This allows for more precise targeting of threats to an information system and maintains an indelible digital trace.
Moreover, blockchain can be used as a decentralized cybersecurity tool, with applications developed to deploy information system security solutions based on this technology and its consensus and decentralization mechanisms. To achieve this, the resilience of this new technology must be ensured.
Securing Blockchains
The security and resilience of digital infrastructures created via blockchain technology is a major current issue. For example, between 2021 and 2022, there was a more than 692% increase in financial losses in DeFi crypto projects. Due to its cross-industry adoption, especially in key areas like finance, it is necessary to regulate the guaranteed level of security. As highlighted by Sébastien Martin, CEO & co-founder of RAID Square and President of the League for Web3 Security:
“The adoption of WEB3 is underway. Numerous use cases are making it indispensable, particularly in logistics, content protection against generative AI, and industries using digital twins requiring authentication, encapsulation, and monetization solutions. For this, strengthening security is crucial to build the necessary trust in these technologies. This is precisely the goal of the League for Web3 Security (LSW3), a pioneering public-private initiative.”
Blockchain technology is not infallible, and decentralized infrastructure can be a target for cyber-attacks. According to a KPMG insight, malicious actors attack vulnerabilities related to smart contracts, the underlying technology infrastructure, wallets (notably through phishing), and front ends. Therefore, it is necessary for Web3 infrastructures to audit their cybersecurity.
Blockchain or decentralized technology offers significant prospects for data security and relies on decentralized technology that tends to enhance the operational resilience of digital infrastructures. To find practical applications as a cybersecurity tool, it is essential to continue securing blockchain tools, democratizing Web3 cybersecurity audits, and providing cyber support for Web3 projects.