This paper investigates how blockchain can address current challenges in cybersecurity, as well as the barriers hindering widespread adoption.
The benefits of blockchain in cybersecurity:
- Blockchain avoids the single-point-of-failure issues that arise within centralised systems and has the ability to facilitate secure, transparent transactions.
- By design, information on the blockchain cannot be tampered or altered, and any unauthorised attempt to do so will alert the entire network immediately.
- In the event of some nodes coming under attack, the network as a whole will remain available and operational.
Obstacles blocking blockchain’s potential in cybersecurity:
- Technological immaturity
- Only early adopters are currently harnessing blockchain for security purposes. As a result, only a small number of use cases exist that can act as evidence for its purported benefits.
- Privacy and security concerns
- Blockchain’s basis in cryptographic technologies means it’s often touted as an example of next-level security, but some threats still remain. For instance, it’s vulnerable to attacks that hijack the consensus mechanism - the feature of the blockchain which decides which blocks to add. There are also potential privacy concerns due to the high number of access points and availability of detailed metadata.
- High costs
- The significant upfront investment companies face in order to implement blockchain-based cybersecurity systems acts as a powerful deterrent, and risks limiting the uptake of this technology.
- Regulatory concerns
- Like with any new and innovative technology, a question mark hangs over blockchain’s regulatory future.
