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How blockchain is helping e-commerce business protect data

By Expert commentator 12 Feb, 2019
Essential

Security of data in an era when everything is connected via the internet is an increasingly worrying concern

For a business, data is one of the most valuable resources in the world. So, protecting their data against thefts and breaches is a great challenge for organizations of all sizes and domains.

Believe it or not, the effectiveness of your data security measures can either make you or break you. Especially if you are an e-commerce business, instances and intensity of data breaches can be unbearable and irrecoverable for your growth.

Security of data in an era when everything is connected via the internet is an increasingly worrying concern. Whenever there is an event of data breach, your company undergoes several severe consequences such as long drawn-out slowdowns, downtimes and legal battles.

In 2015 alone, four million accounts were hacked (with their passwords changed, so their owners were no longer able to access their accounts) leading to a loss of over $2 billion, mentions Identity Theft Statistics presented on the Tiger Mobile website.

Blockchain and Data Security

Blockchain is an ingenious invention that allows digital transformation and creates an incorruptible digital ledger for financial transactions (as in cryptocurrency) and highly secured programs for data security.

What is blockchain technology

Blockchains are a distributed network that can have millions of users (or data files) all over the world. User data in a Blockchain network is safe and secured. A piece of data is like a block that is encrypted or locked by the user with a secured, private key backed by foolproof computing network environment. From here, the data cannot be removed. It also cannot be accessed by unauthorized users or hackers.

Blockchain is a distributed file system that has copies of files of users. Each file consists of blocks, where every block has a cryptographic signature of the last block, making an immutable record.

As mentioned on a blog on Steel Kiwi, "In order to destroy or corrupt a blockchain, a hacker would have to destroy the data stored on every user’s computer in the global network." And there are millions of computers with a copy of the data.

Even if the hacker succeeds in breaking into the network, the undamaged computers, which are called nodes, would have a copy of files stored on their computer. The complexity of a blockchain structure makes the technology the safest online storage.

Bitcoin, the first blockchain application, enables a group of users to carry out transactions at the same time in the encrypted network. Everything - every piece of information - in the network is encrypted. As said on DataVersity, "Nobody can tamper with the blockchain without anyone else noticing it immediately."

Blockchain Restrengthens e-commerce Industry against Data Breaches

Blockchain innovations can be implemented in distributed storage software to fortify the data stored. Implementing Blockchain involves segregating data into various chunks before encrypting each data set, making it more secured and accessible only for those with permission.

Data is distributed across the web. The encrypted and secured data is shared with users worldwide. They can see your files, but access. No one can use, manipulate or mess with your data as it is locked and inaccessible. That means, your business data is safe and secured. The control of your data is in your hands.

Adding more security, a cryptographic signature can be added to the file on the Blockchain. This way, the business would know if someone tries to tamper their data. The technology allows the business to give partial or complete access to users making data more hackproof.

Smart contracts can also be added to the user access rule. This means users can see a file only when they meet certain criteria or provide additional information such as position in the organization, secured network and security key sent to their email or phone.

Blockchain in e-commerce: Why and How

Making Your Customers Feel It’s Safe Buying from You

Without happy customers who are feeling safe trading with you, the road to success is next to impossible for your e-commerce business. You can use blockchain technology to introduce a high level of encryption on the server to protect crucial customer data.

Making your customers feel safe with your advanced data security measures and letting them know about it through on-site pop-up messages, terms and conditions and privacy policies is imperative. All of this builds customer trusts. Where there is trust, there is happiness (on both ends).

Benefits of blockchain technology

Employee Training

At a number of times, cybersecurity trespassing happens due to mistakes within your organization. It is paramount for an e-commerce business to train its employees at each level to follow safe practices to avoid violations that eventually offer an entrance to nasty hackers.

Necessary protocols should be discussed repeatedly and followed without a miss. A single misdeed can compromise your critical data. The administrators should also ensure that only qualified workers get access to sensitive data or applications.

Stronger Encryption

Hackers are always keen to intrude your process and steal your data. No matter how effective your data security measures are, if they are centralized or traditional and aren’t encrypted rigorously, your business isn’t safe.

It is like an open invitation for shrewd hackers who are very much used to these small challenges. To keep your data protected, you will need to practice advanced data security standards. Encrypting your data with blockchain can be incredibly beneficial for you. Hackers can see the data on the internet, but they can’t open it or steal it from you.

Problem with centralized data security processes is that when it is intruded, the entire business is at risk. With blockchain’s decentralized process, there is no scope for malicious codes and programmers to enter.

Blockchain technology benefits

Bottom Line

Protecting data isn’t just about protecting data. It is about protecting your business. Blockchain technology enables e-commerce businesses to be confident that their data is safe and cannot be seen by anyone without permission or necessary credentials.

The data can also be contrived to be accessible only for a certain period of time. With blockchain-enabled data security implementations, it is possible for e-commerce businesses to keep their data and business safe and running effectively.

 

By Expert commentator

This is a post we've invited from a digital marketing specialist who has agreed to share their expertise, opinions and case studies. Their details are given at the end of the article.

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