How Can Blockchain Improve Data Security

New technologies shape the world and the same can be said for blockchain. Ever since this new tech made it into the public back in 2009, the world has been going about its potential use and implications across various systems and processes. 

Nowadays, it’s estimated that the blockchain’s value-add will grow to $176 billion by 2025. One of the most significant uses of blockchain is data security. Adopting the blockchain technology for data security can be a major advantage for modern businesses. 

However, one must take the time to fully understand the technology and how it works so that it can be used to its fullest potential. It’s also safe to say that blockchain will be disruptive at first before companies will be able to see its true value. With that in mind, here are a few ways blockchain technology can improve data security.

A decentralized ledger

In its essence, the blockchain was designed to serve as a decentralized or distributed public ledger that will store, record and validate peer-to-peer transactions. Once recorded, the transaction could no longer be altered in any way. For businesses, blockchain’s decentralization could mean the next level of data security. Instead of keeping data in the cloud, companies could store data in the ledger. 

What that means is that blockchain would segment and encrypt data into smaller pieces and distribute it across the entire network of computers. Because blockchain lacks a central control point, each node would contain a copy of the stored data. That way, even if a couple of nodes were to go down, there still wouldn’t be any data loss. In other words, companies would no longer need to rely on third-party service providers when it comes to storing and safeguarding data.


A private blockchain

Everyone is familiar with the concept that blockchain is, indeed, a public ledger. However, modern advancements lead to new solutions where companies can have access to a private blockchain. The way it works is that a private blockchain can restrict access to users unless they get authenticated. That way, your blockchain is still decentralized but restricted. 

When it comes to online payments, such solutions may be very beneficial for businesses. Today, professional ASX blockchain companies provide various solutions powered by blockchain technology to businesses that have specific needs. You can basically get all the advantages of blockchain technology with no downsides. 

Virtually cannot be hacked

There are many rumours going about the blockchain technology and how it’s virtually impossible to hack. Nothing is impossible to hack but the blockchain is definitely close to it. As mentioned before, the data is decentralized and encrypted. What’s more, each node within the blockchain network validates the data integrity and cross-checks it with the entire network. 

If the data is somehow altered or tampered with, the file signature becomes invalid. So to answer the question about whether or not blockchain can be hacked; it can. However, it would require for the majority of the nodes to be altered simultaneously. The main reason is that nodes are in charge of confirming and validating any legitimate transaction. Fortunately, hackers today don’t have the computing power or the time to achieve that. 


Validation and encryption

When it comes to blockchain’s encryption and validation, every data fragment has a specific file signature assigned to it. This helps validate the data and prove its authenticity. You can thus check every file signature individually and across all nodes to determine if data is, indeed, intact and unaltered. As mentioned before, if there were any alterations to the data, the signature will be rendered invalid. 

This is especially beneficial for companies that check data validity that’s stored in the third-party cloud environment. If you have data and backups stored in the cloud, you can check the validity of the information even years after it was uploaded to the cloud. With that said, blockchain’s validation and encryption of data is undeniably a great advantage when it comes to data security.


The blockchain technology promises to revolutionize the business world, not just in the way of data security but in almost every other business aspect. For a decade, this new technology has been improved and new solutions emerge on the market every day. The only thing that remains is for companies to familiarize themselves with this tech and start implementing it in their business operations.