What you need to know about cyber security and bitcoin
The cases of cybersecurity attacks have been increasing at an alarming rate. Since the pandemic began, the FBI reported a 300% increase in cybercrime which comes in many forms, including currency manipulation, web-based espionage, and identity theft and fraud.
In the US, organizations face the highest data breach costs averaging $8.19 million per breach. Luckily, a solution has been found in the use of cryptocurrency, especially in the financial sector.
Cryptocurrency is a digital asset that uses cryptography for additional security when transacting. As cryptocurrency is expected to be the future of global finance, the risk of cybercrime affecting it looms. Consequently, blockchain is being viewed as the potential cybersecurity technology needed to improve data security.
Unfortunately, even with blockchain technology expected to grant cryptocurrency users peace of mind, bitcoin has faced skepticism over how useful blockchain can protect it from cybercrime.
Here is everything you need to know to help you understand the connection between bitcoin, blockchain, and cybersecurity.
Understanding bitcoin’s origins
The history of bitcoin goes back to 2008 when a 9-page document published under the pseudonym Satoshi Nakamoto talked of a peer-to-peer electronic cash system. In the paper, he explains bitcoin’s workings and how it provides cybersecurity through transacting in blocks that are impossible to duplicate or infiltrate.
Since no two blocks are alike, there is always a finite number in circulation. Currently, 18.58 million bitcoin have been mined and are in circulation. Since Nakamoto set the supply cap at 21 million, only 2.42 million bitcoin are left to be mined.
Till now, Nakamoto remains a mystery, and so far, three people have been assumed to be the creator of bitcoin, mainly due to speculations circulated by the media. However, Craig Wright took advantage of the publicity to say he would verify he was the creator and threatened to sue doubters for defamation.
Blockchain applications
There are many ways through which blockchain technology could be applicable across various industries. In financial services, it helps in data privacy and security, trade processing, and onboarding. It is also applicable in smart contracts, cloud storage, supply chain communication, among many more.
It is, therefore, no wonder Vala Afshar described it as a disruptive technology with the ability to decentralize, digitize, incentivize and secure the validity of transactions.
What is hindering the growth of blockchain?
The main challenge hindering the growth of blockchain is the doubt that has been engraved in the minds of potential users. Its reputation suffers because people link it with cryptocurrency, which has already experienced cybersecurity threats from fraudsters and hackers.
Although it is praised as a disruptive technology, some organizations are afraid of its disruptive nature because they fear becoming obsolete or losing their share in the market. This fear stems from the experience with the dot-com boom that was hyped and failed most of its participants.
Only a few aggressive businesses survived when others failed to keep up with the technology, and companies are afraid of history repeating itself.
Can you trust blockchain as a fail-safe cyber security option
Blockchain remains one of the most effective ways to combat cybercrime. Unfortunately, that does not mean it is fail-safe. Breaching data where blockchain protocol is involved is hard because once data is appended, it cannot be deleted or altered.
Usually, hackers need to initiate a 51% network attack to take over your system’s control. It is costly and takes a lot of computing time which presents a challenge for cybercriminals, but that does not mean it is impossible for the strong-willed hacker.
Therefore, with the trust in blockchain already running low, it is hard to convince businesses to adopt it as a fail-safe cybersecurity option. Perhaps the best way to encourage organizations to adopt blockchain technology is to ensure they integrate a risk management plan and conduct due diligence to prevent hackers from gaining access to their networks.
Cyber security critical role in contemporary business
Cybersecurity jobs are expected to increase by 31% through 2029 as more businesses understand the importance of having a specialist on their payroll. A cybersecurity specialist with bitcoin and blockchain skills will especially be in high demand considering the rising number of companies adopting the technology.
Although some employers will not mind employing someone with an associate degree and extensive work experience, most employers prefer a degree. A master’s degree puts you in a league of your own, and you can ensure you get the necessary skills from a reputable institution.
Maryville University’s online Master of Science degree in Cyber Security program will equip you with skills in blockchain, bitcoin, and other exciting technologies to enable you to have a successful career in the cybersecurity industry. As you wait to enroll, ensure that you learn all there is to know about the financial industry on Business Money Magazine.
