Should Your Business Use Blockchain for Cybersecurity?

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Below are some of the main reasons why you shouldn't invest in blockchain right away.

1. Blockchain is not ready yet
There are a lot of ideas, but very few proven examples of blockchain being successfully used to meet business cybersecurity needs at any scale.

In many cases, using the proposed blockchain solution for cybersecurity is impractical or impossible.

At one end of the spectrum, a quick Google search for “blockchain for cybersecurity” will turn up many mentions of “current projects” and organizations that have published papers on how blockchain could improve security, at least in theory.

On the other end of the spectrum, you'll find companies that have created enterprise-level solutions that don't have the needs of small or medium businesses in mind.

2. Blockchain for cybersecurity may not comply the advantages of line database with certain IT regulations.
Blockchain is still a relatively new technology, and Gartner is quick to point out that because people don’t fully understand blockchain, “it doesn’t have the same level of oversight or audit clarity as traditional systems.” (The full study is available to Gartner clients.)

Especially with new data compliance regulations like GDPR coming into effect , the costs of compliance - especially in a complex, sophisticated system like blockchain - can be astronomical, especially for smaller businesses.

3. Blockchain-based cybersecurity couldn't be more secure.
While blockchain was designed with security in mind, it is not inherently more secure than traditional cybersecurity methods, especially since it has not been proven to scale across different businesses and industries.

Part of this is because blockchain is new and businesses are still trying to figure out how to use it to their advantage.

However, novelty was an advantage of blockchain, which is now losing its appeal. As blockchain becomes more widespread in the digital sphere, more people, including cybercriminals, will understand how it works. Hackers are already trying to undermine blockchain security by accessing it through “back-end systems” such as operating systems, as was the case when a hacker stole $31 million worth of Ether cryptocurrency .

As cybersecurity techniques evolve, so will cybercrime. This doesn’t mean you shouldn’t use blockchain because it will eventually be hacked. It’s just a reminder that nothing is completely secure, even if it’s sold to you as such.

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Follow Blockchain for Cybersecurity
While you shouldn't start applying blockchain to your cybersecurity strategies right away, you should keep an eye on where blockchain is heading for cybersecurity.

If you followed my advice last week and formed a “blockchain committee” made up of IT and business development staff, I would encourage you to engage them in blockchain-based cybersecurity initiatives.

If you can find ways to experiment with implementing blockchain-based cybersecurity strategies, I would encourage you to give your committee permission to do so, as it can help your business become familiar with the technology enough to stay ahead of the competition.

Has your company experimented with blockchain-based cybersecurity initiatives? How did it go? Let me know in the comments below!

Further reading: Find out how many of your competitors are implementing and evaluating different types of small business technologies , including blockchain.
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