GDPR: Is Blockchain Technology the Safer Way to Protect Data?

With GDPR fully sanctioned and enforced, is your business handling data in the best possible way?

Over the past few years, there have been some high profile data breaches, including Uber, Equifax, ABTA and Bupa. In fact, in 2016, there were more than four billion across the world.

However, with the General Data Protection Regulation (GDPR) now in place, businesses are having to rethink the way they use data for marketing purposes and how they store it.

Although with the help of blockchain technology, there could be a more secure way of doing it.

Quality over quantity

When it comes to storing and managing data, it’s a case of ‘quality over quantity’. Where many businesses have multiple databases to collect and store customer and employees’ personal information, they might actually be putting themselves more at risk.

Initially, the idea of reducing the number of databases held may sound ludicrous. But if the smaller quantity of databases is demonstrably more secure via blockchain technology, it can make the running of a business a lot less stressful.

Understanding decentralised storage

Decentralised storage will work by passing data across a network of nodes. In contrast, cloud-based databases are highly centralised, meaning they are easy areas for hackers to attack.

Cloud-based databases also encounter physical issues like when there are power cuts. Whereas a decentralised storage solution via blockchain uses geographically distributed nodes to still function.

To put it simply, instead of a customer handing over their data to a specific business, they are distributing it across a network of people all over the world. This data is shared by the community of people, but cannot be read or altered without the customers’ approval. For businesses, this helps to remove some of the responsibility regarding holding and storing sensitive data.

How does a more secure database through blockchain look?

Blockchain technology’s decentralised identity structure enables a business to create and manage one secure identity across an array of platforms.

For instance, if a business captured contact details on their website, this will then join other information secured through email campaigns, landing pages and so on.

This kind of single entity or decentralised systematic approach can make it easier to segment data in a variety of ways. Instead of delving into different pieces of data from numerous sources, they can easily do it in moments via blockchain’s streamlined approach.

In regards to users logging into a secure platform, blockchain could make a big difference as well. For example, the site would only ask for specific credentials from the pool of decentralised data, instead of from a business’ own database. This would also mean that only the necessary details for the particular login would be provided by the single entity. Therefore, it would not be stored locally and can bypass security issues.

The user would then be given an identification tag, which is useless to a cybercriminal without having access to the user’s personal info stored in the secured decentralised database.

Recognising the limitations

While blockchain technology looks like the future of storing data more safely, there are a couple of factors to look out for.

Including the fact that security can be limited if your blockchain network isn’t very large and a business’ network bandwidth could struggle to carry out transactions very quickly.

However, these small issues are merely hurdles and don’t outweigh the many benefits blockchain technology has to offer.

For advice on whether adopting this new innovative technology is right for your business, get in touch with our team at EBA Crypto today.