Know About What is Blockchain & Data Protection
As we know, we are living in the digital world and it is a time of cybercrimes and money caught up. Therefore, in order to have data protection, bitcoin is the first implementation of a blockchain protocol, which becomes popular and used widely. This permits users to transact directly without involving any third-party as an intermediary. Therefore, in this post, we will aware you about what is blockchain & data protection?
The blockchain is the software that supports the Bitcoin success and of other digital currencies. It is a peer-to-peer network of nodes using distributed logs or records, which can help in tracking transaction that is related to a value such as votes, property, money, etc. In addition, the most popular application of blockchain is bitcoin. The central counterparty does not regulate the transactions on a blockchain. However, the individuals that are involved in the transaction first needs to provide information, including personal information and then a record is created and checked by the nodes in the network. Like this way, the users that form community will become their own regulators. Moreover, in order to have a better understanding of What is blockchain, read further and clear all your doubts related to the blockchain.
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What is Blockchain?
The blockchain is the distributed database, which keeps the track of continuously growing records, called blocks. In this, each block contains a link to the previous block and makes a blockchain. It can also be said that blockchain is open and distributed ledger, which can record transaction between the two in a verified and efficient and permanent way.
According to McKinsey “blockchain is a distributed register to store static records and/or dynamic transaction data without central coordination by using a consensus-based mechanism to check the validity of transactions.”
Everyone has its own definition for blockchain Technology but the meaning behind all of them is the same. The blockchain is the software which helps in creating a distributed digital logs of transactions. The advantage of using Blockchain is that it removes the need for a central authority and keep transactions highly secure.
As discussed above the bitcoin is the most popular application of blockchain. Therefore, each computer is attached to a Bitcoin network known as a node. A copy of the blockchain is downloaded automatically and used to validate, transfer, and record a transaction by creating a block. Moreover, each block in the blockchain is stored in a linear, chronological, and timestamped manner. In addition, each block keeps a copy of the previous block that confirms the data authenticity.
Benefits of using Blockchains for Personal Data Protection
- Decentralized & Distributed Blockchains
There are many trusted third parties that process our personal data but all these entities are centralized. Therefore, it can be possible that a single point of failure can leak an unimaginable amount of information. The result of this cybercrime in the form of attack on that particular entity like email services provider, hospital, etc. However, Blockchains are always decentralized and distributed. Therefore, virtually, it is impossible to identify the particular entity responsible for all that happening on the blockchain and for processing the personal data.
- Transparent & Public Blockchains
No one is currently having effective control over who is processing their personal data and how. Moreover, the data subject is in control only to a restricted level of their personal data. Therefore, whenever there is a transfer of data, the subject loses control. On the other hand, blockchains are transparent and public. This lets all information on a blockchain, including personal data is accessible to all.
- Safe & Non-editable Blockchains
Blockchains are completely safe and secure, which uses cryptography such as encryption, timestamping, digital signature, etc. In addition to this, it offers a secure way to store and manage information, even personal data and also provides systematically embedded economic incentives for a network to maintain entities. Apart from all this, it is non-editable also so, it is merely impossible for anyone to modify or remove information maintained on blockchain and contains irreversible transactions
How is Blockchain Used?
The main aim of blockchain applications is to keep the data safe and secure. Banking and e-commerce or any other transaction that need data immutability and wants to maintain the data integrity as original can use blockchain technology. Inspiring from this new technology, Acronis recently released Acronis Storage as its new version. It is a software that offers a universal storage solution and incorporates blockchain in Acronis Notary.
- Acronis Notary with Blockchain
Acronis Storage incorporation with Acronis Notary makes use of blockchain to make sure the data authenticity.
Working
Whenever a data, document, or a file is kept in Acronis Storage, the Acronis Notary generates a fingerprint i.e. a hash for every single file. Moreover, a hash is an algorithm, which creates data as an output having a fixed length known as a fingerprint.
However, a hash is timestamped & recorded in the blocks and stored in the blockchain. In this, each block keeps the hash of the previous block and it references the previous hash on which it is building. Like this the blockchain distributed and if any location containing the copy of the blockchain is compromised, then the other locations can handle it. Each log in the blockchain is now immutable and verified independently. Moreover, records cannot be manipulated, if required the authenticity of data can be verified by matching two fingerprints for the same data.
Acronis in Acronis Storage uses the blockchain technology that is the current demonstration towards its commitment to provide the best data protection solutions to its customers.
The Bottom Line
Protection of data, including personal data, is the primary requirement of any users. Blockchain Technology is one such technique that comes up with many new applications like Bitcoin to save the data and maintains its authenticity. Users are having many queries related to blockchain and data protection. Thus, what is blockchain and data protection? all are discussed in this post to increase your knowledge associated with digital data protection.