Blockchain can create secure network communication. Previously, blockchain also revolutionised how business is done in various industries, such as finance, healthcare and manufacturing.
A survey from Deloitte shows that 53% of fintech companies recognise the influence of blockchain on their organisation. PwC also confirmed that 84% of companies, including Facebook and Amazon, already used blockchain in 2018. Experts predict that blockchain will become even more widespread in the coming years.
Simply put, blockchain is a distributed ledger technology. It was launched in 2009 and recorded all transactions in detail. Blockchain supports the use of cryptocurrencies to validate transfers and receipts of assets.
Blockchain offers detailed and traceable storage in open sources. Another advantage of the blockchain is its decentralisation, security and immutability. It makes wider use of blockchain, included in the communication network.
Blockchain Revolutionising Communication Network
Blockchain technology is not just bitcoin. It has three advantages that could shape the future of communications: decentralisation, immutability, and security. Here's a more detailed explanation of these benefits:
1. Decentralisation
Blockchain cannot be controlled in a single node. A decentralised ledger stores blocks of information across the network. When one node goes down, others will back up and catch missed transactions. Each node processes transactions, eliminating the risk of one system disrupting another.
Blockchain communication decentralisation can be implemented in messaging, social media, voice and video calling, and email. For example, a messaging system ensures that a single entity does not intercept or manipulate messages. Whereas in social media, voice calling and email, blockchain nodes offer enhanced security and privacy for users.
2. Data Security
Data security is important in business. Companies must protect information from attacks. Unfortunately, data breaches are becoming increasingly common. In 2013, Yahoo had three billion records affected by a database breach.
Luckily, blockchain provides a secure option for storing information. It also uses Merkle trees, hash functions and public keys, making it difficult for hackers to modify content. Many projects like Signal and Eximchain use blockchain to improve secure data communication.
3. Data Privacy
At first glance, data privacy seems unlikely with blockchain since the content is open to anyone. However, several blockchains use a licensing system. It ensures that sensitive information is kept out of the public eye. Data is encrypted and requires permission to access. Data has many levels and permissions in companies, so only specific employees can access it.
Blockchain uses various features to secure data communication, such as encryption, pseudonymity, smart contracts, permitted access, and zero knowledge. However, ensure each data has secure key management and access control.
4. Transparency
Blockchain has pocketed trust in the network because transfers are guaranteed safe and protected. All transactions can be seen in real-time by everyone in the network. It increases accountability and trust between businesses.
Blockchain offers data integrity, making it difficult to change the content. With blockchain, companies can ensure the legitimacy of transfers by monitoring their routes. Besides immutable records, several blockchain features, such as timestamping and traceability, can increase transparency. Timestamping is useful for verifying data regarding the details of the document creation time. Meanwhile, traceability is the real-time monitoring of information.
4 Ways to implement Blockchain in Communication
Decentralisation, data privacy, data security and transparency are the four main reasons blockchain can be applied in the communications industry. These four aspects will improve the communication system in several areas, such as:
1. Secure Messaging
Companies are increasingly concerned about social media platforms that often expose users' data. In 2019, Facebook experienced a data breach that affected over 2 billion users. Apart from Facebook, Twitter also has similar incidents. In 2018, Twitter once urged 330 million users to change their passwords. It happens because of a code error on the site which can cause interference.
SOMA Messenger owner, Gordon Yilin Lu, explained that blockchain provides a secure solution to communication problems, especially for large platforms. Blockchain technology has a private key to protect user data information. One application that has been implemented is SOMA. It integrates blockchain technology with crypto encryption and wallets. SOMA uses the scheme to reward users for engagement and protect user privacy.
2. Enterprise Level Communication
One of the startups that built the first cloud communication network using blockchain was TOP Network. It lets organisations contribute idle resources to the network. Resource and service providers will join the network transparently, utilising the blockchain. It allows companies to build broad, high-quality coverage at a lower price.
A decentralised cloud communication network using blockchain can seamlessly integrate between applications. The complexity between applications will be reduced. Steve Wei, CEO of TOP Network, explained that blockchain could break the boundaries between various social communication applications. Interoperability with blockchain can facilitate the Internet of Things (IoT), which requires the connection of multiple applications.
3. Secure VoIP
VoIP (Voice over Internet Protocol) is cheaper than regular telephones. Consumers want services with high effectiveness and low costs; the solution is blockchain.
Blockchain technology eliminates the central access point already used in VoIP today. It routes the caller's signal to the receiving number and replaces it with a distributed network. Costs are getting more efficient because the traversed routes are getting fewer. Blockchain also maintains security and maximises the speed of data transfer.
4. CDNs
CDN (Content Delivery Network) is also benefiting from blockchain technology. CDNs provide an essential service for global information transfer across the internet at an intrinsic cost. Then the blockchain offers a way to optimise the unused bandwidth of servers around the world. It connects them to a pool of servers, thus seamlessly moving data across the globe. The advantage of blockchain in decentralised bandwidth points is being able to cure service interruptions instantly.
Conclusion
Blockchain is changing communication networks in more ways than one. Many features, such as decentralisation, security, privacy, and immutability, can be utilised. All of these features enhance the way businesses communicate and connect. In addition, blockchain is also able to cut costs significantly. With all these advantages, many companies are using blockchain in the long term.
