Five industries with active blockchain integration
Blockchain creates a reliable cybersecurity protocol to protect sensitive information online. Here are some examples of its utilization.
Examples of blockchain cybersecurity at work. How many companies actively use new technology?
Cybercrime is one of the main problems of the cryptocurrency industry. According to some experts, the activity of scammers every year brings more than 500 billion dollars in losses for the business. Hackers have a very wide range of methods, from simple phishing attacks to breaking a complex security system of a cryptocurrency exchange.
Can blockchain technology enhance cybersecurity statistics in 2019? In essence, blockchain is a decentralized, digital, open ledger of all transactions and transactions involving the use of cryptocurrency. This is called distributed ledger technology or DLT. It improves cybersecurity because a platform that uses a consensus mechanism can prevent fraud and detect data tampering. The quality of such protection depends on the characteristics of the platform’s operational stability, data encryption method, and transparency. Here are five industries that use it as a new weapon in the fight to protect our most sensitive information.
Traditional financial system
Blockchain has attracted the interest of many famous Wall Street institutions long ago. Some of the major U.S. financial sector companies have even begun to experiment with new technology (including JP Morgan and Bank of America). JP Morgan Chairman and CEO Jamie Dimon recently said the bank has been looking at blockchain for solutions to cybersecurity issues.
It is noteworthy that many banks are often under pressure because of cybercrime. Financial institutions become targets of fraudsters who try to access funds and personal data of bank customers. In its annual report, the US Office of the Comptroller of the Currency (OCC) suggest a multi-layered security protocol to decentralize risk. Such a system can be provided by blockchain. By the way, some of the companies listed below already use blockchain technology to guard their most important data.
Santander was the first UK bank to use blockchain to protect its international payment service. The bank’s blockchain enables customers to securely pay between Santander accounts in Europe and South America. In partnership with Ripple, Santander’s “One Pay FX” is now live in Spain, the UK, Poland and Brazil.
Developers from the largest financial institution in the U.S. have developed their own enterprise-focused version of the Ethereum called Quorum. The platform uses blockchain to process private transactions.
Barclays recently approved a patent that will help it improve the security of remittances. It is likely that in the future one of the world’s largest financial conglomerates will continue to explore the possibilities and potential of DLT. Barclays is already using blockchain to protect customer privacy.
The diamond industry is one of the largest natural resource industries, which also makes a significant contribution to the GDP of African and other diamond-producing countries. Its distinctive feature is the high level of crime and violations of the law. Gemstones are very small in size and therefore easily subject to hidden transportation. The most pleasant part for criminals is that transactions are carried out confidentially, and each sale allows for a profit within a few years. Diamonds are notorious for money laundering and terrorist financing on a truly massive scale around the world.
Everledger, one of the pioneering technology companies in this field, is working to address a number of such acute and challenging issues. It provides various stakeholders, from insurance companies and claimants to law enforcement, with access to a register with unchangeable historical data to identify and authenticate diamond transactions. The service issues a “digital passport” for each diamond — a kind of unique tag that accompanies its gem in all related transactions.
DLT can be used to store all types of data and perform various transactions in a secure and open manner. Moreover, building identity in blockchain can give individuals greater control over access to their personal data and the degree of openness to others. The combination of blockchain’s decentralisation and identity assurance tools allows creating a digital certificate that serves as a watermark that can be placed on any transaction involving any asset. There are several companies involved in this field.
Civic is a blockchain-based identity management platform whose services are aimed at solving the problem of identity theft. The service allows users to register, confirm personal information and protect their credit history from fraudsters.
This product provides a secure identity management solution integrated with fingerprint scanners and other biometric personal devices. UniquID Wallet is available on non-standard devices, servers, personal computers or smartphones, tablets and other devices with limited battery life. Its features — individual blockchain storage for information about the used “devices” and the lack of passwords, replaced by algorithms of user recognition by personal objects connected to the system. This allows the user to achieve the highest possible level of integrity and interoperability within any infrastructure involving blockchain.
Internet of Things
The internet of things, or IoT, is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs). There have been thousands of reported IoT device hacks over the last few years. It is estimated, that this number will surely increase in the coming years. These startups are aiming to enhance cybersecurity statistics in 2019 of the IoT industry in the future.
Chronicled is a San Francisco-based company that launched a blockchain platform for the Internet of Things aimed at improving the consumer experience.
As part of the Ethereum-blockchain project, it stores the identification data of physical items such as consumer goods and collectables with built-in BLE and NFC microchips. This allows for the creation of secure and interoperable digital identifiers with many other systems, which opens up opportunities for new mechanisms of interaction with the consumer, based on the tracking of their proximity to the object. The Chronicled project is distributed under the Apache license, i.e. with fully open-source code.
offers a number of proprietary software and hardware solutions for large-scale intelligent control of industrial systems and equipment. The company’s development is based on the principles of decentralization, cryptographic protection and autonomy.
This service offers its own system of care for the elderly and people in need of care, as well as physical devices (bracelets, medallions) and applications for remote collection and analysis of vital signs and identification of situations when the person wearing them needs help.
Defence and military
According to Accenture, 86% of defence companies plan to integrate blockchain in the protocols within the next three years, especially in cybersecurity. Many defence contractors handle some of the most sensitive information (coordinates for missions, identifiable employee/personnel information, new technologies, etc.). Many militaries explore the possibilities and potential of DLT to improve cybersecurity level of their systems.
Defence Advanced Research Projects Agency (DARPA)
DARPA is looking to blockchain technology for secure military communications, including developing what the Department of Defence refers to as an “unhackable code”. Engineers are creating an encrypted, blockchain-based messaging system for U.S. military personnel to share vital information at any location on the globe without worrying about hackers from other countries.
Lockheed Martin was the first U.S. defence contractor to incorporate blockchain technology into its cyber safe strategy for developmental processes, enabling more efficient and assured offerings to its customers. The company has expanded its work with Guardtime Federal to integrate a variety of integrity and cyber-related capabilities into Lockheed Martin aircraft products and processes using DLT.
Blockchain is now used in thousands of cryptocurrencies. DLT provides a decentralized mechanism that makes possible the protection of the integrity of cryptos. Besides that, blockchain can be used as a cybersecurity protocol. Here is an example of four popular companies in this industry.
MobileCoin is developing an easy-to-use cryptocurrency for companies with limited resources. The company’s cryptosystem replaces third-party transaction providers and stores all transaction data between two peers in encrypted form. Increased security helps companies maintain transparent public records.
Startup Javvy is located in Atlanta. It develops a universal wallet where you can store and exchange a large number of cryptocurrencies and tokens. The company has developed its own application based on blockchain. It is decentralized and uses user biometric data to authenticate users.
Coinbase is one of the largest cryptocurrency exchanges with billions of dollars in turnover. Here users can trade coins with the largest capitalization. The company devotes a lot of resources to its own system of protection against cybercriminals. For maximum efficiency, blockchain is integrated into Coinbase security protocols.
Founders Bank’s goal is to become the first fully decentralized blockchain bank. It will not have a specific owner — the institution will be distributed to users who buy their shares in the company. Once licensed, Founders Bank will be the first bank owned by the public rather than by a corporation.
Blockchain as a public decentralized register was firstly implemented in Bitcoin, the first cryptocurrency invented by Satoshi Nakamoto ten years ago. All confirmed transactions are included in the blockchain. Based on this information, Bitcoin wallets can calculate the balance of your wallet and verify that in new transactions, BTC is actually spent by their owner. The integrity and chronological order of the blockchain are based on reliable cryptography.
Chronological order of transactions in the block is provided by mining. This process allows different computers to “agree” on single system status. In order for transactions to be validated, they must be packaged in a block that meets strict cryptographic requirements and must be verified by the network. These rules do not allow to modify the previous block so that all the following blocks would be invalidated.
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