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Blockchain: Data protection and privacy

Updated: Apr 14, 2023

Many industries, such as the Government and cloud storage services have already started to use Blockchain to confidently secure their data and warn off potential threats. Blockchain has significant potential to change data transactions in the future, requiring more permissions to gain access to said data - but how?

The decentralised nature of blockchain ensures that no data loss will occur if a computer or node is compromised − in other words, there is no single point of failure. This is achieved by breaking data into small fragments and distributing them across a network of nodes, creating a digital ledger of transactions with no central control point.

Furthermore, activities and data on the blockchain are encrypted and it is possible to prove that data has not been tampered with. Users can assess file signatures on every ledger on every node to verify that changes have not been made. Any changes that are made are recorded and the information can be compared to the ledger to verify any anomalies.

Blockchain can also be used to decentralise a system which makes it more difficult if not impossible to hack on a system and/or network. Blockchain would give the security system the capability to independently make a decision and in turn more effectively detect any suspicious devices or commands.


This blog was written by Derek Stinson.

For all questions regarding the topics raised in this blog, please contact a member of our team of digital asset legal experts.


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