The term blockchain technology has been in wide use significantly in recent years. Specifically, covid has largely turned the course of action and served as the main reason for blockchain development. Nowadays, every industry is talking about blockchain and how it can benefit them. Moreover, Blockchain experts respond positively to how blockchain technology can be a boon for the entire world, from individuals to organizations. Blockchain technology doesn’t just help reduce paperwork, it saves time, provides accurate information,assists convenient transactions and successfully prevents managed crimes, scams, and fraud.
The world has experienced a huge percentage of scams, frauds, and cyber crimes since a long while. The various financial institutions of the nation and the world are evidence of such frauds within their ecosystem. The worst part is that it takes a long time to identify the scams happening and render helpless. As a result, various questions arise about the monetary safety of individuals and companies and is there a better way to prevent such crimes across the world?
Blockchain technology can surely help here. Also, if your quest is how to become a blockchain engineer? We will be talking about where you can opt for the best blockchain courses. Let’s start further.
What is Blockchain Technology?
Blockchain is a distributed ledger that facilitates monitoring assets and transaction recording within a business network. Blockchain technology includes tangible and intangible assets such as cars, house patents, and intellectual property. It aims at lowering transaction costs and risk.
Infact, The technology behind various cryptocurrencies and their security measures is blockchain.
How Can Blockchain Technology Prevent Cyber Crimes, Scams and Frauds?
The below-mentioned features of blockchain technology can prevent cyber crimes, scams and frauds to a large extent.
Blockchain is A Decentralized System
In blockchain every network member is responsible for transfer of any confidential information securely. It is because they have the power to collectively add or reject any transaction. Also, It makes it easy to identify the fault and the accused simultaneously.
A blockchain is a distributed digital ledger containing transaction details conveyed and adjusted across a peer-to-peer network. Since no single authorized body holds central control, there is no way for error to occur.
The scammers use different ways to commit fraud by editing or altering digital information, tampering with the accounting system of the business transactions that are hard to identify and uncover. But, the blockchain expert team claims that using a distributed ledger that works digitally can help reduce fraudulent activities by making the entire process more transparent and identifiable within the business network. The involved network members can look for the history of the assets and their movement. Moreover, the participants would need to control a major part of the network to conduct any fraud.
Blockchain Can Be Selectively Permissioned
Businesses deal with vulnerable information and documents not just with anyone. Outsiders shouldn’t be eligible to access the system, and insiders shouldn’t be able to corrupt the records. Advanced blockchain development lets business achieve this framework by prohibiting outsiders from accessing all the business information and data. But every blockchain network is not permissioned.
The permissioned blockchain networks can prevent the occurrence of various scams by controlling the participants’ access and monitoring the process. Every member of a blockchain system needs an invitation to participate before influencing the network. The participants are provided with cryptographic membership Identities. The participants can see the transactions that are related to them with the help of that cryptographic ID. No participant can get access to their transactions without this ID. Thus, making it hard for scammers to betray protocols.
Blockchain is Immutable
The most common fraud practice is emitting or deleting transactional activity on papers or digital data. We have seen more of such acts in previous cases. With the introduction of blockchain technology, it is impossible to edit or delete the recorded transactions in every block. Financial institutions can keep detailed information of the transactions well managed and recorded systematically.
Before recording any transaction in a block, the network participants must validate the transaction with the consensus process. Only after the members declare a transaction as valid it becomes a part of the block along with a timestamp. Further, cryptographic ID, and its hash link to the previous block in the chain secures it. The business network participants can always add a new transaction block, but the previous data can still be accessible. According to the blockchain expert team, Implementing blockchain technology will ensure detailed information about an asset’s history, the owner, and the transaction initiator.
Blockchain Monitors Device Authenticity
Every blockchain transaction doesn’t need to have any association with finance. Some are for trustworthy communication and data exchange. The businesses have faced malicious software updates while dealing with that can result in heavy loss of data and unwanted delays. As a result, it hampers the business operation and incurs huge losses.
With the introduction of blockchain technology, a healthy cyber security practice can ensure that every business network operates in harmony. Blockchain technology authenticates the devices used and the incorporated software through which the various businesses operate the system. Blockchain hashing helps update verification, downloads, and cooperation with blockchain engineers as well. It will reduce unwanted costs to businesses and would save significant time. Moreover, it will help prevent common supply chain attacks on vulnerable software and IOT devices.
Blockchain development has come a long way since it started in the early 90s. With the new advancements in technology, it aims to make online dealings easier and more convenient.