cybersecurity blockchain

Cybersecurity and Blockchain

The year 2020 has been an impact on our lives and not only because it is the year of the start of the pandemic, but also because the Digital Transformation process has reached a high and unexpected point, in which transactions and digital payments have increased exponentially and Blockchain technology has stood out as a new strategic ally to carry out certain transactions and new secure business processes. A trend that will undoubtedly gain ground in this year 2021 and in the years to come.

Blockchain technology is a secure technology because of its cryptographic base. Encryption provides a high layer of security, providing trust and protection to the processes in which it is applied. We must not forget that in times of greatest vulnerability hackers not only do not cease, but increase their criminal activity.

However, it should be noted that it is not the same to protect the information using software-based encryption than to encrypt using cryptographic hardware, the latter being much more robust, hard to break and, therefore, more secure. For this reason, in highly regulated markets (Financial Sector, Critical Infrastructure, Government and Defense) hardware encryption is a requirement and not an option.

Within the ecosystem of Internet of Things (IoT) devices, Blockchain stands as a emerging technology to establish secure communications between these objects within the 5G network, whose technological sum is known as “Blockchain of Things” as it records, audits and validates each of the information exchanges between these devices connected to the Internet of Things.

In line with this, we see a new emerging trend to be able to make payments and other transactions through this network of objects, what we call the Internet of Payments (IoP) where the trust and transparency of the associated processes is key to their implementation and mass use (for example, being able to pay from my car the tolling of a highway, something already common to be able to pay for a parking or the collection of food from the vehicle).

Why is a Blockchain platform with hardware encryption the most secure option?  

Because a Blockchain & IoT environment securization platform that encrypts the operation using a certified Hardware Security Module or HSM  provides greater strength and robustness in store and custody private keys and, consequently, a higher level of security.

For regulated environments, such as the financial sector (traditional Banking and Fintechs) in REALSEC, we offer a robust hardware infrastructure for any Blockchain network whether public, private or hybrid, through which we provide a high level of cybersecurity to the Blockchain transactions of these entities, whether for asset management (cryptocurrencies), document transfer and sensitive information , international payment cards or any other type of transaction, regardless of whether we use the Blockchain technology of Bitcoin, Ethereum, Corda or any other.

It is a robust platform, based on HSM, that provides trust to any business process in which a high level of cybersecurity is enforceable or that it is subject to “compliance”.

In turn, another advantage of a Blockchain platform, of the aforementioned features, is the protection of users’ digital identity by generating, store and secure custody of digital certificates keys used in the signature process of Smart Contracts. In this way, we can prevent incidents associated with phishing and fraud risks.

Despite all this, progress is needed towards a regulatory framework for Blockchain technology as well as its governance.

However, 12 years after the creation of Blockchain technology, announcements such as the launch of a Sovereign Yuan by the Bank of China have piqued the interest and participation of many Governments and Central Banks around the world to move towards a regulatory framework for disruptive blockchain technology.

Among them, the BCDE itself (European Digital Central Bank for Foreign Exchange) which has already taken the first steps towards creating a European digital currency.

In addition, the creation of a European sovereign and interoperable digital identity, which allows citizens to exercise control of their data, we will be opening a promising horizon for the development of Blockchain technology, which will allow us to optimize business processes, make them more efficient and carry out much more secure business operations and transactions in the public and private sector.

Sergio Gómez

Digital Innovation & Presales Manager

REALSEC

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