Blockchain is a technology that can keep records of transactions secure. One of the most common and well known blockchain implementations is the transactional backbone of Bitcoin and a number of other cryptocurrencies. Now, both tech and financial services companies such as IBM, Deutsche Bank, HSBC, CIBC, Barclays, Intel, Wells Fargo, and Bank of America Merril Lynch are counting on blockchain technology to help secure the financial sector.
But what exactly is Blockchain, and will it do society any good?
Blockchain is a type of distributed ledger technology. It’s composed of “blocks” which are “chained” together by cryptographic hashing. With financial transactions, or other sorts of data which can be logged occur through a particular blockchain system, new blocks are added to the ledger and connected to all of the other blocks through the hashing function. When an entity has the right keys, they can refer to transactions in the chain. The data in the chain should be ciphertext – text encrypted by strong algorithms – so when used properly, the data shouldn’t be accessible to unauthorized parties. Blockchain is designed to protect both the confidentiality and integrity concepts of the CIA triad.
There are two major types of blockchains: public blockchains and permissioned blockchains.
Public blockchains are implemented by Bitcoin (BTC), Ethereum (ETH), and a number of other technologies. Usually anyone with the right software can add blocks to the ledger, validate transactions, and view the ledger. When Bitcoin works properly, a Bitcoin user can make payments or receive money in the cryptocurrency, add those transactions to the blockchain, and the software can validate that data.
Permissioned blockchains are stricter in some ways than public blockchains. Only a limited number of parties are granted access to a permissioned blockchain. The authentication standards for the specific authorized parties are usually (Read more...)
*** This is a Security Bloggers Network syndicated blog from Cylance Blog authored by Kim Crawley. Read the original post at: https://threatvector.cylance.com/en_us/home/will-blockchain-improve-financial-cybersecurity.html