A New Weapon in Cybersecurity: Blockchain

Cybersecurity is the defense against harmful attacks by hackers, spammers, and cybercriminals on internet-connected devices and services such as computers, servers, mobile devices, electronic systems, networks, and data. Businesses utilize this procedure to safeguard themselves from phishing scams, ransomware attacks, identity theft, data breaches, and financial losses.

Considering the plenty of previous experiences, no cyber defense or information system can be considered one hundred percent safe. Given the lucrative nature of cybercrime and the resourcefulness of criminals in their search for new attack tactics, what is regarded as secure today will no longer be safe tomorrow. However, one of the most effective methods for minimizing cyber risks will be blockchain, in the future.

Despite its current popularity, there are skeptical points of view that question the scalability, security, and longevity of blockchain technology. Although part of blockchain's underlying features guarantees data confidentiality, integrity, and availability, companies utilizing blockchains must establish cyber security measures and standards to defend themselves from external threats.

In this article, we will discuss the blockchain's definition, types, functioning processes, advantages and disadvantages, its influence on the cybersecurity industry, and its history.

What is Blockchain?

A blockchain is a decentralized database or ledger consisting of expanding lists of entries, or blocks, that are cryptographically linked together. Each block that is added to the chain receives a precise timestamp. A blockchain serves as a database for electronically storing items in digital form. A house, a car, money, a piece of land, or intellectual property like a patent or copyright are all examples of assets. On a blockchain network, practically anything of value is recorded and traded, lowering risk and increasing efficiency for all participants.

A transaction ledger has, up to now, been a blockchain's most widely used application, however other types of information can also be kept on a blockchain. Digital assets are delivered, not copied or transferred. Because digital assets are decentralized, several parties can govern them and access them in real-time. Blockchain ledgers are visible; every update is noted and supported by evidence. Since its ledgers are public and include built-in security features, blockchain technology is a top choice for almost every business.

Blockchain technology is mostly used for maintaining a safe and decentralized record of transactions in cryptocurrency systems like Bitcoin. A blockchain's concept is that by guaranteeing the accuracy and security of a data record, it fosters confidence without the requirement for a reliable third party.

The ability of blockchain technology to be decentralized is its key feature. The only vulnerable target point is eliminated with this feature. As a result, systems or websites whose storage and network traffic are no longer in a single location become completely difficult to hack. Consequently, one of the most effective techniques for reducing cyber dangers in the future is blockchain. But as it goes through the arduous process of growth, blockchain faces numerous startup challenges, just like any other new technology.

Blockchain technology has the potential to be used in a wide variety of applications. Utilizing its integrity assurance to create cybersecurity solutions for a variety of other technologies would be one of the finest uses.

What are the Types of Blockchains?

Depending on usage and requirements, the blockchain network can be configured in a variety of ways. Methods used to create a blockchain network are explained below: public, private, or built by a consortium of individuals.

1. Public Blockchain: It is a distributed ledger that anyone may join and use to perform transactions. Each peer controls the non-restrictive ledger format within that system. Currently, anyone with internet access can join the public Blockchain. The user has access to both old and new records and can perform mining activities. These intricate calculations are necessary to approve transactions and register them in the ledger. On the public blockchain network, no legally binding record or transaction may be altered. Since the source code is typically available, anyone can examine the transactions, identify issues, and make suggestions.

2. Private Blockchain: Private blockchain networks are either operated by a single identity or operate in a private environment, such as a closed network. Although this blockchain is much smaller than a public blockchain network, it is still decentralized and features peer-to-peer connectivity. They often function on a limited network inside a business or group and are not frequently accessible to everybody who wants to contribute processing power. They go by the names of permissions and business blockchains.

3. Hybrid Blockchain: Hybrid blockchain is known to offer the advantages of both public and private blockchains, and organizations who want to use the benefits of both models prefer to use it. It lets businesses create a private, permission-based system in addition to a public, permissionless system, giving them control over which Blockchain data is accessible to whom and what data is made public. In a hybrid blockchain, transactions and records are typically private, but access can be allowed via a smart contract if verification is necessary.

4. Consortium Blockchain: Consortium Blockchain is similar to a hybrid blockchain as it has both private and public blockchain properties. It is also known as a federated blockchain. A different feature of a Consortium Blockchain is that many organizational members work together on a distributed network. A consortium blockchain's consensus procedures are controlled by nodes that are predetermined. Concerning transaction initiation, receipt, and validation, it has a validator node. Cluster members can send or receive transactions.

Figure 1. Types of Blockchains

How Does Blockchain Work?

In a blockchain, transactions are kept in blocks, with each freshly created block, referencing the previous block using a hash. These blocks form a chain, therefore the term "blockchain". This chain continues without end.

In the case of blockchains such as Bitcoin, trust is predicated on technological characteristics such as the public accessibility of all blocks. No transaction is added to a block until it has been validated by a miner, a specialized network computer. This guarantees that no fraudulent transactions are recorded on a blockchain.

As a result, parties that do not necessarily trust one another can utilize a blockchain to conduct business, as their transactions are tamper-proof.

What are the Benefits of Blockchain in Cybersecurity?

Blockchain is employed in a decentralized manner, allowing all users to collectively maintain control rather than any one individual or organization. The data entered into decentralized blockchains cannot be altered since they are irreversible. This indicates that Bitcoin transactions are permanently stored and visible to the public.

Information is essential to business. It is preferable if it is received promptly and precisely. Blockchain is the ideal technology for delivering such information as it offers real-time, shareable, and entirely transparent data that is maintained on an immutable ledger and only accessible to participants in a permissioned network. A blockchain network has many other uses outside of tracking business.

Here are five applications of blockchain technology to cybersecurity use cases:

• Unchangeable Digital Ledger: A key objective of the blockchain is the creation of an immutable and distributed digital ledger. The initial intent was to store financial data (i.e. the records of cryptocurrency transactions), however, any data (including other records, executable code, etc.) are kept on the distributed ledger of a blockchain.

  By storing a copy of the ledger on each node in the network, the blockchain generates an immutable and decentralized ledger. This ledger employs encryption to make it extremely difficult to build a forgery that would be approved by all network nodes. This combination of distributed storage and immutability of the ledger makes it extremely difficult to fake the ledger to erase or alter the data it contains.

  A distributed, immutable digital ledger has several potential cybersecurity applications. A case in point is the storing of log files. During a cyber attack, cybercriminals frequently delete or edit log files to conceal their footprints, making it more difficult to identify their presence or determine what they have done. With an immutable and distributed digital ledger holding log data, it is far more challenging to build a false version of the record that conceals the attacker's activity or to erase every copy of the ledger throughout the network.

• Decentralized Decision-Making: Decentralization is fundamental to the blockchain. The blockchain was created to replace existing financial systems, which rely on centralized parties such as banks to control and safeguard financial transaction data. The blockchain is meant to distribute power across several parties and motivate everyone to operate in the network's best interests.

  The decentralization of the blockchain is strongly dependent on the blockchain consensus method. Every blockchain consensus method utilizes a scarce resource to represent blockchain control. The greater a party's influence over a certain resource, the greater its likelihood of being chosen to produce the following block. Since block makers decide what information to put in their blocks and contribute to the ledger, they influence the ledger itself.

  Because it eliminates single points of failure, decentralized decision-making makes systems more difficult to attack. If a system is dependent on a single node to make all decisions, then an attacker who disables or corrupts one node can bring the system down. As a result of the decentralization afforded by blockchain consensus algorithms, an attacker must disable or compromise a large number of nodes in the blockchain network to take influence over its decision-making processes.

• Distributed Data Processing and Storage: A distributed digital ledger is intended to be implemented by the blockchain. In addition, the development of smart contracts has made it feasible for this ledger to allow distributed processing.

  Blockchain's decentralized data storage and processing are made possible by the blockchain protocol's architecture. Multiple nodes hold multiple copies of the digital ledger and concur on a method for updating it. This guarantees that all ledger copies remain synced without the requirement for a central authority to select the "official" version.

  A distributed data processing and storage system is more robust than a centralized system. In the case of a cyberattack or other catastrophe that disrupts company operations, certain blockchain network nodes would likely be taken down. With a distributed approach for data processing and storage, the blockchain network can continue operations considerably longer than a traditional, centralized system and can bring downed nodes back up to date more simply once operations are restored.

• Data Authentication and Integrity Protection: The blockchain relies significantly on authorized data with robust integrity measures for its functionality. The first blockchains were built to hold financial data, and these systems would not function if anybody could generate a phony transaction from a particular account or edit data retrospectively.

  Every node in a distributed ledger that sends updates over a peer-to-peer network must be able to verify the legitimacy of a transaction or block and ensure that it has not been altered en route.

  Using public key cryptography and digital signatures, blockchain secures data authenticity and integrity. A digital signature verifies that the data was generated by the owner of a certain private key and has not been altered subsequently. Anyone with knowledge of the public key linked with the private key may verify the signature as well as the validity and integrity of the protected material.

• Smart Contract Functionality: Original blockchains were primarily intended for data storage, allowing them to establish a decentralized financial system. Nevertheless, these blockchains were expanded to accommodate smart contracts. Smart contracts enable distributed and decentralized execution of programs on the blockchain.

  Using the blockchain's decentralized ledger, smart contracts are implemented. Instead of storing financial information, transactions on these systems contain executable code. When a block is added to the distributed ledger, each node's copy of the blockchain's virtual machine executes the code it contains. Since each node has a virtual machine with the same initial state and executes the same code, they are always in agreement with the current state of the blockchain's virtual computer.

  Smart contract capability is advantageous in cybersecurity for many of the same reasons distributed storage on the blockchain is. The ability to execute programs on a distributed and decentralized platform makes these programs more robust, as a failure of all systems is required for the program to cease functioning. The auditability of transactions is enhanced by storing them on an immutable, publicly accessible ledger.

What are the Challenges of Blockchain in Cybersecurity?

Governments and international organizations alike consider blockchain-based cybersecurity as the next big thing and are eager to adopt it. However, it is not as easy as just upgrading an existing toolset.

This strategy of combining blockchain with cybersecurity is still maturing. Not all research concepts on digital identities, decentralized storage, safeguarding edge devices, and smart contracts are compatible with commercial requirements. Without careful study, an implementation might become infeasible or even impractical. When considering blockchain as a component of their cybersecurity strategy, enterprises may face the following challenges.

• Data Privacy: The public blockchain allows anybody to see and recover transaction data. This is an issue for firms that seek tight control over what information is visible to the public. Permissioned blockchain technology can address a number of these privacy concerns. A blockchain platform for enterprises can provide a permissioned network that enables only trustworthy parties to observe or participate in transactions and vote on decisions.

• Scalability: Implementing blockchain can limit scalability, mostly due to block size and response times. To provide confidentiality and anonymity, every node in this system saves, processes, and retains transactions in a block. Small and medium-sized enterprises struggle to absorb an increasing number of transactions in a block as the number of transactions increases. These increases may potentially slow down the process of validation. With limited computational and storage resources, scalability and decentralization are incompatible.

• Regulations: Organizations are still attempting to comprehend how the structure and complexity of blockchain fit into the ever-changing data privacy, compliance, and regulatory landscape. In some instances, the General Data Protection Regulation (GDPR) and comparable legislation permit individuals to demand that their data be erased; these rules provide a "right to be forgotten"/ Blockchain technology carries the risk of breaching the law since it forbids parties from removing or changing data.

• Interoperability: Some blockchain systems implement their smart contract logic, transaction mechanisms, and consensus models using a diverse ecosystem. Insufficient interoperability hinders scaling. From the developer's standpoint, platform misconfiguration, communication distrust, specification flaws in application development, and cross-chain smart contract logic issues can potentially create bottlenecks.

  Thankfully, open protocols, multichain frameworks, and algorithms are becoming more established in blockchain and minimizing this issue. GS1 has established global standards for blockchain interoperability and is collaborating with Microsoft and IBM to incorporate these standards into their business blockchain applications. Additionally, the Enterprise Ethereum Alliance develops commercial standards.

• Technology Risks: Efficiency, optimization, decreased expenses, and enhanced security is a few of Blockchain's many advantages. However, if not effectively controlled, technology adds new threats to systems. These dangers consist of:

• Inadequate key administration and access control: In contrast to conventional methods, end users are solely responsible for managing their digital assets. Unauthorized access or theft of cryptographic keys can result in a complete and irreversible loss, as private keys are associated with user ownership.

• Unintentional branching and chain split attacks: During the process of upgrading smart contracts, it is possible that certain nodes will not support the modifications made during the consensus phase. This may result in a new chain breaking off from the old one and pose blockchain-specific dangers, such as replay, double spending, and 51% attacks. Unauthorized parties might halt, reverse, or repeat transactions under such situations.

• Inadequate selection of encryption schemes and insecure procedures: Using cryptographic techniques to transmit or store sensitive data provides insufficient protection against man-in-the-middle (MiTM) attacks. Several problems might make blockchain susceptible to this form of infiltration, including insufficient encryption, weak or wrong keys, key management flaws, poor cryptographic implementation, and inappropriate verification of digital signatures or certificates.

• Integration of application programming interface (API): Whether a blockchain is public or private, API integration requires third parties. This results in trust concerns and accidental disclosure of critical information.

How Does Blockchain Transform Cybersecurity?

Blockchain's fundamental properties are decentralization and encryption. Each user has a private key to add blocks and make changes, and a public key to enable others access to the database so they can observe the modifications. Because blockchain is a distributed system, obtaining a user's credentials to access systems is far more difficult, if not impossible, and to remove a whole blockchain, each node must be manually destroyed.

As professionals study a range of use cases for blockchain technology, we can already identify the areas where cybersecurity would benefit greatly.

• Improve identity and access management: The technology stores credentials on the blockchain in a decentralized manner, reducing system intrusion risks and access fraud as hackers will have to exploit entry points to gain access to the data. We are fully aware that employee error is the primary cause of credential theft, which is centrally stored and managed.

• Track changes: Blockchain aids in preventing unauthorized data changes and theft. Any modifications you make to the blockchain are irreversible, so you cannot go back and undo them. Additionally, updates or new data won't delete or replace older data; instead, they'll be recorded at the top of the blockchain with ownership and a timestamp, making them trackable in the event of an attack and allowing for source tracing.

• Ensure redundancy: A distributed blockchain is continually present in many locations. Because different computers maintain copies of the blockchain data, in the event of inadvertent or deliberate manipulation, you can locate the original data in other sources.

• Prevent cyber attacks: DDoS attacks are frequent cyber attacks that try to overwhelm corporate systems with requests, bringing them down and rendering them unusable. DDoS attacks are easy because parts of the domain name system (DNS) are stored centrally and are susceptible to attacks and theft which can be used to bring systems down. The use of a decentralized blockchain will minimize DNS theft and DDoS attacks. Additionally, cyber attacks are promptly identified and prevented by preventing bad data from entering the system because every block modification in the blockchain must be confirmed with the other blocks.

What are the Blockchain Use Cases for Cybersecurity?

The technology used to construct blockchain-based platforms and apps have the potential to enhance security, but technologies are never the starting point. First, security executives must collaborate with product and platform developers to identify the challenges, interactions, and tradeoffs associated with new security capabilities. Then, they may design, test, implement, and manage these capabilities.

Here are some categories for blockchain security and privacy application cases.

• Maintaining the integrity of cryptocurrencies.

• Protecting financial assets.

• Protecting medical records of patients.

• Government cybersecurity protocols are being revised.

• Protecting military and defense information.

• IoT (Internet of Things) device fortification.

• Private, encrypted messaging.

• DNS Security Utilizing Blockchain Technology.

• Blockchain for Decentralized Medium Storage.

• Cyber-Physical Infrastructure Verification

• Protecting Transmission of Data.

• Reduce the risk to human safety posed by cyberattacks.

• Authenticating edge devices for security

• Enhanced privacy, Integrity, and Authenticity

• Enhancing or even replacing the PKI Enabling Multi-Signature Authentication Model

What are the Biggest Blockchain Firms?

The blockchain market is expanding rapidly. The blockchain market is predicted to grow even more in the coming years, reaching more than $65 billion by the end of 2025. Part of this can be attributed to increasing technological investment, significant usage of blockchain-based solutions in banking and cybersecurity, as well as the widespread use of blockchain-based solutions for payments, smart contracts, and digital identities.

Additionally, most American and European banks are looking into blockchain options. Government, business, insurance, and personal identity security are just a few of the many industries that technology can disrupt. The biggest blockchain companies are as follows:

• Coinbase Global Inc. (COIN): Coinbase Global is a global provider of financial infrastructure, including cryptocurrency-specific transaction services and technologies. The platform of the firm enables retail consumers to invest, spend, save, earn, and use bitcoins. Additionally, the platform offers institutions a broad pool of liquidity for transacting in crypto assets and enables crypto-ecosystem partners to create crypto-based services and accept crypto assets as payment securely.

• Monex Group Inc. (MNXBF): Japan-based Monex Group is a provider of internet banking services. It operates online retail brokerages in Australia, China, Japan, and the US. Additionally, the firm provides asset management, investing education, mergers and acquisitions (M&A) advisory services, international foreign exchange (forex), and cryptocurrency exchange services.

• Riot Blockchain Inc. (RIOT): Riot Blockchain is a firm that mines Bitcoin. The company's mining activities include its Rockdale, Texas complex, which has a total generating capacity of 750 MW and is currently developing 450 MW. Whinstone's operation is likely the largest Bitcoin mining facility in North America, as measured by built capacity.

• Canaan Inc. (CAN): Canaan is a provider of high-performance computing technologies located in China. The firm focuses on application-specific integrated circuits (ASIC) high-performance computer chip design, chip research and development, computing equipment manufacturing, and software services. It offers a variety of artificial intelligence (AI) services and is engaged in the research and development of sophisticated technologies, including AI chips, AI algorithms, system-on-a-chip (SoC) integration, and more.

• Silvergate Capital Corp. (SI): Silvergate Capital is the parent firm of Silvergate Bank, which provides digital currency industry players with financial infrastructure solutions and services. Silvergate is a member of the Federal Reserve and the industry's top provider of innovative financial infrastructure solutions and services.

How will Blockchain affect Cybersecurity in the future?

DDoS, data breaches, ransomware attacks, social media phishing, and even direct cryptocurrency mining attacks are increasing, costing victims hundreds of billions of dollars annually. The expanding regularity, sophistication, magnitude, and financial repercussions of cyber attacks have the public and government, and commercial entities searching for strategies to stay up with the threats' continual evolution.

DDoS attacks, such as the 2017 Google incident, capitalize on the reality that hackers are dispersed about their targets. This is the defining characteristic of asymmetric warfare. By utilizing blockchain to decentralize assets, apps, and security infrastructure, it is feasible to stop battling hackers on their terms and instead beat them at their own game.

The History of Blockchain Technology

Before bitcoin ever existed, many of the technologies on which blockchain is based were already under development. The Merkle tree, which bears the name of computer scientist Ralph Merkle, is one of these technologies. In his 1979 Ph.D. thesis for Stanford University, Merkle devised a strategy for public key distribution and digital signatures known as "tree authentication". He ultimately filed a patent for this approach of generating digital signatures. A data structure for checking individual records is offered by the Merkle tree.

In his 1982 Ph.D. dissertation for the University of California, Berkeley, David Chaum presented a vault system for constructing, maintaining, and trusting computer systems by mutually suspicious organizations. This system exhibited a lot of the characteristics of a blockchain.

In 1991, Stuart Haber and W. Scott Stornetta envisioned what is now commonly known as the blockchain. Document timestamps could not be altered by tampering with a cryptographically protected chain of blocks, which was their first project.

In 1992, they modified their system to include Merkle trees, which improved productivity and allowed them to collect more documents on a single block. In 2008, however, Blockchain History began to gain significance due to the efforts of a person or group known as Satoshi Nakamoto.

Satoshi Nakamoto is widely regarded as the creator of blockchain technology. People think Nakamoto might be a person or a group that worked on Bitcoin, the first implementation of the digital ledger technology, but very little is known about him.

In 2008, Nakamoto conceived the original blockchain, and since then, the technology has matured and spread to a variety of uses outside cryptocurrencies. Satoshi Nakamoto published the first whitepaper on the technology in 2009. In the whitepaper, he described how the technology was well-equipped to increase digital trust due to its decentralized nature, which meant that nobody would ever control anything.

Since Satoshi Nakamoto's departure and transfer of Bitcoin development to other core developers, the digital ledger technology has matured, leading to the creation of additional blockchain applications.

The progression of blockchain technology has been steady and encouraging. The terms block and chain were used individually in Satoshi Nakamoto's original paper, but by 2016 they had become synonymous with the Blockchain. In recent years, the file size of cryptocurrency blockchains, which include records of all network transactions, has increased to around 450 GB.