Block chain technology is decentralized archive of public ledger of all the digital transactions and events that have been implemented and communicated among participants. The technology allows creation of a secure platform that enables transaction sharing between companies and entities. With this technology, different entities of a business network including companies, customers, manufacturers, producers, dealers, etc. can interact with trust. All the information across the networks is decentralized in the form of encrypted data. Storing this information and protecting personal data is an essential aspect.
Internet today has an immense amount of data. Likewise, this data is growing at an enormous pace as recent years have seen huge collection of such data. Example of this is Facebook Facebook, the biggest platform for social networking, that has been collecting huge amount of such personal data since its commencement. Other examples could be Google, Amazon, and many others which collects incredible amount of these data every day. In fact, all businesses today are heavily dependent on the analytics of such data as it gives them ability to personalize their service and anticipate what the future trends might look like. All this comes at the cost of privacy of one’s personal data as the owner have no control over handling of such data by the third parties.
To solve this, blockchain can operate as valuable technology. This technology can be mediator for controlling access of information. Because blockchain operates with a decentralized ledger system, it can solve trust and openness issue as the technology allows sharing of information within all the connections of the network. The nodes of the network can deal with smart contracts that allows them protection from potential violation of their personal data. With this technology, the user requires both a private key and a passcode to retrieve and release the information of the encrypted data. Blockchain allows the information stored to be owned and controlled by the user. The immutable ledger which is decentralized in a blockchain technology means that information is encrypted and stored with security, privacy, and trust. Identity can be decentralized using decentralized ledger in a blockchain technology.
Blockchain technology can contribute vastly to reduce the amount of security breaches in personal data that is presently occurring. The advancement in blockchain technology and its features of decentralized information sharing can contribute a lot to companies that rely on these vast amounts of data but currently carry the risk of security lapses that can occur in such private data.