The ability for someone to forge, copy, delete, or modify a company's data is universally threatening. Both hackers and trustworthy employees have the ability to destroy the integrity and trustworthiness of your data history, which can make it difficult to stay compliant with government standards, make business decisions, and avoid legal challenges. Worldwide spending on information security products and services is projected to exceed $124 billion in 2019 according to the latest forecast from Gartner Inc. The market previously increased 12.4% from 2017 to 2018, and this newest forecast expects an additional 8.7% growth. Organizations with sensitive data have understandably been seeking out new ways to use technology to protect and prove the accuracy of their data. Blockchain technology just might be the answer on how to reduce cost and prove data integrity.
When a transaction occurs, it is encoded into a block of digital data and all members of the blockchain network agree to store and distribute data across the network. Each block is connected to the one before and after it, creating an immutable "blockchain". The entire database of transactions is stored on all network nodes and able to be viewed by all members of the network. these blocks of data and transactions are unable to be deleted even by a system administrator. Data on the blockchain can only be changed if a majority or super-majority of network participants agree.
The high level of security inherent in blockchain technology lies in its connection to other data blocks, cryptography, and distributed nature. A blockchain is a chain of digital “blocks” that contain records of transactions for any type of asset. In order to make updates to a particular piece of data, the owner of that data must add a new block on top of the previous block, creating a specific chain of code. If anything, even as small as a letter, gets altered from how it appears in a previous block, the entire chain across the network is also changed accordingly. This means that every single alteration or change to any piece of data is tracked and all data is permanently kept because users can always look at previous versions of a block to identify what is different in the latest version. This form of record keeping makes it easy for the system to detect blocks that have false data, which prevents loss, damage, and corruption. This also makes it extremely difficult for hackers to tamper with a single block. To tamper with one record, the hacker would have to change the block containing the record and all those linked to it and so on all the way down the line.