Technology is changing very fast. For over a decade, people have been using portable personal devices, such as their laptops and smartphones, to buy and sell goods and services at online sales sites. The information and personal data tend to circulate more freely than one might hope because of the democratization of the websites that you use. It was only after the flight that we took into account the warnings and started to pay attention to our personal information.
It is only after our identity has been stolen and the offense has been successfully committed that each website is considered a less safe and more shared space with real people with whom we should not act lightly. With our increased awareness, we end up exercising due diligence and verifying that those with whom we interact are who they claim to be. Every day, more and more personal databases fall prey to a hacker who manages to find passwords to access accounts. The illusion of digital security is crumbling.
Unfortunately, it usually takes a personal encounter with these cybercriminals before people become less inclined to provide compromising personal data to online retailers. Blockchain technology gives a unique assurance of change and gives consumers control of their online identities, adding a sustainable level of security that provides peace of mind when we manage all online communities and markets.
Below you will find a quick and easy overview of the blockchain’s technological possibilities and how it aims to combat online fraud, protect your personal data while allowing you to continue to buy online as you have always done before.
Overview of the Blockchain technology
A blockchain is a decentralized network of peers that manages a large digital book for all transactions made in the system. Rather than using a central database to store financial records, a blockchain depends on the user to edit and update transaction logs and personal account balances.
The fact that no one can control the entire network is the foundation of enhanced security that only the blockchain can provide. Blockchain has the potential to revolutionize the business world well beyond cryptocurrency and one of its most promising applications is to improve data security. Personal data theft and identity theft are two of the most dangerous financial problems that most consumers ignore or neglect.
In 2018, more than four billion records of data were stolen and most of us don’t even know that such a thing had even happened. Today, most users are more concerned about the theft of their data via social media, while the loss of data from financial institutions is the real threat, as this data can be used to bankrupt us financially. Before we can explore how we can combat this threat of personal data theft, we must first examine how this happens.
How blockchain secures data ?
In order to explain the blockchain’s data security, we have to understand how this technology works. As its name suggests, the blockchain is a chain composed of several blocks. These different blocks are the grouping of information on exchanges between two persons or entities.
This information contains all the exchanges that may have had what makes them transparent since they cannot be modified. Once this information is processed, ultra-powerful servers validate all the data transferred.
There is a validation network for each step. Each of these steps is cryptographed which allows the securing of data and transactions. This demonstrates the security aspects inherent in this solution. Moreover, as the blockchain is a collaborative technology, each user validates or not the blocks.
Therefore the blockchain is a technology for securing data. Transferring files or sharing them will help build a relationship of trust between you and your customers.Â
Benefits of Blockchain technology in fraud prevention
It is possible to detect and prevent illegal activities in the processing of payments without the participation of people by using the following features that can fight against blockchain fraud:
- Permanence – It is impossible to disable the system because it works simultaneously on multiple devices around the world. All mechanisms or devices storing the complete transaction history cannot be hacked at the same time.
- Transparency – As a string with separate blocks, the system keeps a record of all transactions in each of these blocks. If corrections or additions occur in these records, they must be checked and checked throughout the block validator system, which are machines with strict rules that must be followed.
- Deferred and Multisignature Payments – If you have to pay for a particular product but do not trust the seller, Blockchain allows you to use multi-signature transactions for deferred payments. In this case, the seller receives money only when the buyer recovers his goods. The delivery service or other trusted party may constitute an additional level of arbitrage that ensures that the buyer has the funds and that the seller sends the goods.
- Immutability – The Blockchain Offers Significant Benefits for Fraud Detection Once a form is entered into the system, it cannot be deleted or falsified.
Wrapping Up
Though Blockchain technology reduces the risk of identity theft but does not allow consumers to be completely safe from these criminals. A determined attacker could work to access your digital wallet, take control of your funds and leave you powerless to counter the threat. It is always imperative to maintain adequate security on all personal devices by using a reliable antivirus program.
Keep up-to-date with cyber-intrusion methods and find out, make sure you use the most sophisticated applications on the market to combat online hackers. No matter how much time you spend online, it makes sense to know how to protect your personal information and your privacy from those who want nothing better than stealing your identity and causing you harm. The good news is that you can continue to use your devices, but in a safer way, without interfering with your normal online routine activity.