The Crypto Tech That Could Save Cybersecurity

Something has to change. Cybersecurity is out of control. When you look at the numbers, the statistics are overwhelming.

• Security breaches increased by 72% percent from 2021 to 2023.
• There’s some form of cyberattack every 39 seconds.
• 56% of Americans don’t know what steps to take if they’re involved in a cyberattack.

Interestingly, the crypto tech could save the dire cybersecurity mess. And it makes sense. Some cryptocurrencies – despite being volatile – are stable. Yes, we can say volatile and stable in the same sentence. The Bitcoin chart and live price often experience dramatic dips, yet the blockchain’s underlying technology has proven to be a robust foundation for innovative cybersecurity solutions.

Below, we’ll explore the crypto tech that could save cybersecurity.

Decentralized Identity

Identity management is arguably one of the areas that could be improved.

Centralized systems are the most significant deficiency of these services, and data breaches render enormous quantities of sensitive information vulnerable. Think back to the infamous 2017 Equifax hack, involving 147 million accounts and stolen customer data records.

With the help of decentralized identity solutions utilizing blockchain, there is no longer a need for a central repository of sensitive information. Instead, people could have their own digital identities on a blockchain-based system and only they have the keys to their information. By decentralizing identity, the possibilities of large-scale data breaches decrease significantly. This technology takes the power away from the third party and gives it to the end user.

Example in Action: The Microsoft ION project is the perfect example. Built on the Bitcoin blockchain, it is a decentralized identity platform that enables users to verify their identities securely without relying on third parties. Similarly, Civic, another blockchain-based solution, empowers users to control their personal information, offering a secure and private way to manage identity verification across various platforms. These initiatives highlight how decentralized identity can reduce reliance on vulnerable centralized systems.

Smart Contracts

Self-executing or smart contracts are contracts whose terms are embedded in code and self-execute. These contracts, residing on the blockchain, trigger a series of activities as soon as set conditions are satisfied, removing human error or manipulation from the procedure.

Smart contracts in cyber security can also be used in processes that are prone to human error or errors as a result of negligence, like transferring funds with incorrect details. They could also automate sensitive data access permissions by granting them only when specific requirements are satisfied. Fund movement can also be automated through smart contracts, ensuring that funds are only transferred after all trade requirements.

Example in Action: The Ethereum blockchain introduced smart contract functionality, enabling secure and automated agreements across industries. For instance, in the supply chain sector, companies like IBM and Maersk use blockchain-powered smart contracts to automate processes like payment releases once goods are delivered and verified, reducing delays and disputes.

In voting systems, blockchain projects like Voatz have leveraged smart contracts to ensure transparency and prevent tampering by securely recording votes and automatically validating them under predefined conditions. Similarly, cybersecurity applications, such as Nexus Mutual, utilize smart contracts to automate claim payouts for insurance policies, ensuring funds are released only when specific criteria are met.

Encrypted Data Storage

Data breaches are the biggest risk – a big percentage of the population already has their PII or financial information compromised and might not even realize it.

There is potential to improve the traditional model of storing data using blockchain. The stored information in the cloud can become compromised through an attack on its central point. However, because of the nature of the blockchain, such information can be stored in a distributed structure that is also encrypted. Data is no longer kept in a single central server but is cut into encrypted pieces and distributed across several nodes in the blockchain technology.

Example in Action: Storj and Filecoin are two platforms that provide distributed file storage using blockchain. Such systems now allow users to save their files online securely. These providers fake networks and then split the files into multiple encrypted parts and spread them globally rather than keeping them in one place like traditional cloud storage providers.

AI with Blockchain

One of the most appealing fields has to be artificial intelligence and blockchain.

AI can digest massive amounts of information and find relationships and weaknesses in cybersecurity risks that humans simply can’t. As a result, AI integration with blockchains could help in understanding the situation, finding active threats, and even predicting future attacks.

AI-supported algorithms can observe the activities of users and entities on the blockchain to identify unusual patterns. Such deviations could indicate malicious behavior, and AI could be triggered (automated) to perform certain actions in response to these alerts, like closing the now-infected nodes or placing a temporary freeze on all transactions.

Example in Action: Companies like SingularityNET are working on strengthening the two technologies. These services could be applied in cybersecurity to detect potential threats and respond autonomously in case of a breach.

Blockchain for Supply Chain Security

Social and political impacts regarding the security of supply chains have escalated rapidly over the years.

The moment an expanding number of businesses use various third parties for software, hardware, and data, the entire supply network is prone to cyber threats. Blockchain can enhance supply chain security by having a secure registry of transactions and the whereabouts of products that cannot be modified.

Every stage of the supply chain can be captured on a blockchain and logged into a database­ whether as a component of the finished product or the raw material itself. This makes it obvious whenever someone tries to modify goods or information – and impossible for them to do so. Smart contracts can be applied to warrant that certain vendors deal with approved partners who have tough cyber security measures in place.

Example in Action: IBM provides its Food Trust blockchain as a useful asset in the food industry to manage its supply chain with the confirmation that data is credible and has not been changed.

Crypto and blockchain technology might not necessarily instantly save the cybersecurity mess, but it can at least make a dent. The growing vulnerabilities are insane – something must change.

A New Hope for Cybersecurity

While blockchain and crypto technologies may not solve all cybersecurity challenges overnight, they offer promising solutions that can significantly reduce vulnerabilities. From decentralized identity and smart contracts to encrypted data storage and AI integration, these innovations present new ways to safeguard sensitive information and protect against ever-evolving cyber threats. As adoption of these technologies grows, they have the potential to reshape the landscape of cybersecurity, providing a more secure and resilient future.

Read more: Buzzark