Exploring Blockchain Technology: A Potent Weapon Against Rising Cybercrime Threats
Summary:
Experts suggest that blockchain technology could serve a crucial role in combating rising cybercrime concerns, including data theft, ransomware attacks, and identity fraud. The decentralized nature of blockchain increases data security and integrity, making it particularly beneficial for data-heavy industries like healthcare and finance. Blockchain is also seen as a potential deterrent to AI-based cybercrimes. However, experts warn that while it cannot completely eradicate these crimes, it can help minimize their occurrence and mitigate impacts. Infrastructures resilience alongside well-informed users are seen as key elements for deploying these technologies effectively.
Continual escalation in cybercrime is a growing concern, with some experts suggesting that blockchain technology, though not a cure-all, could potentially deter cybercriminals. Cybercrime, which encompasses ransomware attacks, identity theft, data breaches and phishing schemes, is predicted to cost globally approximately $10.5 trillion per year by 2025 according to research by cybersecurity company Cybersecurity Ventures. The initial decentralized blockchain, Bitcoin, launched in 2009 complete with its associated digital currency, applies features like cryptography, decentralization and consensus to fortify its security.
Ronghui Gu, co-founder of CertiK, a company focused on blockchain security, expressed to Cointelegraph that blockchain is inherently a security technology. He suggested its widespread use could enhance the security of fields, particularly in healthcare and finance, which are largely dependent on the integrity of data. Gu emphasized that patient information secured on a blockchain could lower the risk of both data leaks and illegal access to sensitive details, thus enabling patients to have greater command over their data and its sharing permissions.
Certain businesses have already started testing the use of blockchain for medical data management, with one even unveiling a blockchain-based COVID-19 medical certificate. According to Gu, the susceptibility of traditional data storage systems to cyberattacks due to their centralized nature combined with their usual lack of mechanisms for users to validate how their information is being used, make blockchain and Web3 technologies appealing alternatives. Blockchains use distributed ledger technology, thwarting data tampering and network penetration attacks by eliminating single points of failure.
CertiK's 2023 annual security report, "Hack3d: The Web3 Security Report", indicated that cybersecurity incidents in 2023 resulted in a loss of digital assets that exceeded $1.8 billion. Gu asserted that while blockchain technology is not immune to cyberattacks, it is more secure due to its decentralized nature, and once data is entered, it is almost impossible to modify.
Data available from the digital data-gathering platform Statista displays that the most significant losses in the United States in the preceding year were from investment scams, with business email compromise and tech support scams following closely. Each attack typically involves a request for the victim to transfer money, resulting in not only financial loss but also the exposure of sensitive information. Gu proposed that smart contracts could lower the likelihood of these common cyber attacks.
While Gu clarified that the complete eradication of cybercrime is not achievable, the aim should be to minimize it and lessen its impacts through the development of robust infrastructures and the education of users. He suggested the correct application of blockchain has the potential to boost security in specific fields and is particularly useful against quantum computing attacks.
Fraser Edwards, co-founder and CEO of Cheqd, underscored the role of blockchain technology in preventing cyberattacks, particularly phishing and scams involving impersonation. Edwards asserted that blockchain technology could potentially offer a solution to new scams and threats involving artificial intelligence. Furthermore, Edwards suggested a possible way of reducing such cybercrimes could be the use of a decentralized identifier, a unique, easily verifiable, and resolvable web identifier.
Published At
5/29/2024 4:30:00 PM
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