Businesses spend a lot annually mining, gathering, and securing data. With the right stream of data, a rational decision-making process becomes easier for businesses. Data security is a big issue for businesses, as it is common to see hackers infiltrating their cyber security to steal data and probably sell to the highest bidders. Sometimes, ransomware is used by intruders to gain access to the database of companies and wipe out their data. Losing data is detrimental to both the operations of the firm and its reputation.
With the presence of ransomware, companies invest a lot in creating backup structures to store their information.
Data storage evolved from storing files in a cabinet to data rooms, and even the cloud. Most storage facilities are centralized, which opens them up to a single point of failure.
Once ransomware enters into the database, it replicates and wreaks havoc, if the victim doesn’t pay the stipulated ransom. Some companies have to cough out millions of dollars in ransom, which has made the ransomware industry a profitable illegal venture.
Elements of a Good Backup System
A backup system could save a business the problem of paying the ransom or losing their data files in error. Different companies use varying backup mechanisms, and the good ones have the following elements in common:
• New innovation
Regularly, backup systems are upgraded and outfitted with the necessary technology to function effectively. Using an outdated mechanism could defeat the purpose of saving data files on a site that is different from the regular storage system.
• Different from the original
If the backup is linked to the extent that an issue in the original data file will affect it, then it is not efficient. The system should be designed in such a way that an accident in the original can’t affect it. It should know when to disconnect itself from the original to avoid being corrupted.
• Highly secure
The aim of a backup system is to ensure that if the original is hacked, the data files will still be available. This means that such a mechanism should be highly secure from tampering and theft. Its security features should be top-notch and able to withstand an attack, making it battle-ready. Encryption is one of the security architectures in a secure system.
• Easy to use
Once a hack has occurred in the original system, the company will want to use the backed-up data files. A good system should be easy to deploy.
Blockchain Technology
Some companies are incorporating blockchain technology into their operations because of its decentralized storage capacity. As a decentralized system, this network allows nodes to possess copies of the transactions and data files while keeping track of any alteration that is being made. Since every node has a copy of the ledger, it is almost impossible to alter it. This is why this technology is immutable, meaning that it is unchangeable.
Once a node begins to malfunction, it is disconnected from the network. Usually, in a Proof of Stake network, validators run the nodes, and before they are allowed to verify transactions, they have to possess a large staking pool. With this condition, they have no choice but to behave appropriately or they could be penalized.
As a backup system, different nodes or computers have access to the ledger, meaning that there are backed-up copies of the platform’s operations in the database scattered all over the globe. Usually, the nodes verify the authenticity of the transactions, and before a node is chosen, some factors have to be considered. A typical PoS platform uses a randomized selection process to choose the validator that will verify transactions. Once transactions are verified, they are stored in blocks, which can’t be altered, but can be viewed by anyone. Every transaction in the network in the platform is recorded and once verified becomes tamper-proof.
How Blockchain Can Be Used For Data Protection
The data stored on a blockchain is safe from being accessed by unauthorized parties through the use of private keys. Owners of data can manage who accesses their data, thereby preventing middlemen from misusing their data. An example of a blockchain-based platform that offers structured distributed data storage functionalities is Bluzelle.
• Protection of intellectual property
Before data can be accessed by individuals in the network, they have to provide proof of document ownership. This means that only the allowed participants can access it.
• Time stamping
With blockchain technology, users can irrefutably back their claims that a data set was uploaded at a particular time. Since it is on the blockchain, it can be proven without a doubt. This is crucial for records of business operations.
• Tamper-proof
Data protection is topnotch in a typical distributed network based on this technology, and it has proof to show that the data was not tampered with or altered. It is a great additional layer of security for business architecture. Before someone can hack into a blockchain, it takes large computing energy, which may be discouraging for potential attackers.
Cloud Backups On Blockchain
An increasing number of businesses are opting for blockchain because of its reliability, transparency, immutability, and decentralization. Since the nodes in the network have a copy of every transaction that occurred, it is difficult for anyone to try and game the system. As a backup system, companies do not have to worry about it being attacked by ransomware or losing their data files to human error.
When a company backs their data on a cloud structure that uses blockchain, they are assured that it doesn’t have the flaws of traditional cloud storage systems. It is easy for them to verify the authenticity of the data, and if any changes have been made. When checking, the user can see if changes have been made, the duration it was made, and the participant that did the alterations.
Attributes of cloud backups on blockchain
• Efficiency and security
With a decentralized cloud storage system, the need for an intermediary is removed, meaning that data could be stored safely.
Using a traditional backup system doesn’t come as cheap, in the long run, like utilizing blockchain technology. When one considers the probability of ransomware wreaking havoc in their system and the expected loss that could occur, blockchain is quite affordable.
With its encryption, only those with private keys can make alterations to the system. The speed of a PoS network is quite fast while ushering in transparency, which is difficult to see in a traditional cloud system.
• Highly transparent
One reason hackers are emboldened is that they can hide behind their keyboards to wreak havoc. Though blockchain may be anonymous, it offers transparency in the sense that the on-chain character of a participant can be tracked. If a coin is moved, the recipient’s address is available to everyone, and with the transactions linked to the said address, it may be easy to unveil the identity of the owner of the address.
• Alterations to the data
A good data backup system should have a data-tampering feature that stops unauthorized people from having access.
Only those with private keys can carry out transactions at an address. Blockchain technology offers its users the opportunity to seamlessly track the data stored in the block and verify that it has not been altered.
How To Restore Bitcoin Wallet Backup
In many wallets, once a user is opening it for the first time, a mnemonic seed is given to them. The seed is usually a sequence of words, which can be used to restore access to the wallet. It is advisable that first-time users of a wallet store the mnemonic seed in a safe place.
Mobile wallets like Trust Wallet generate random phrases or mnemonic seed phrases that the user can utilize in recovering a wallet later in the future. Without the sequence of words, it is impossible to recover the backed-up version of the wallet. Many hardware wallets such as Trezor offer this feature.
It is advisable to store the words on multiple surfaces, mainly papers to ensure that they are not lost. Losing the phrase means that the backup process can’t happen again.
Once the phrase has been stored, it can be used to recover a wallet. In a Trust Wallet app, click on recover wallet, then type the phrase. Immediately that is done, it is recovered.
In Conclusion…
- A good backup system should be recent, highly secure, easy to use, and can’t be corrupted by an attack on the original.
- Backing up on a blockchain offers the user access to a highly transparent, secure, and efficient backup system.
- For companies that are tired of ransomware, blockchain technology could offer them the additional layer of security they need.
