Each year, companies spend billions of dollars on cybersecurity solutions to secure their data from external tampering. Besides cybersecurity measures, companies and enterprises rely on third-party auditing firms to guarantee that data is correct and resolve any eventual disputes. Although an efficient line of defense, auditing firms charge a significant fee for their services, but more importantly there is the question of who verifies the auditor. In the end, companies are still required to place their trust in an external party to whom they must give access to their data.
Blockchain provides a viable alternative to this model. By combining cryptography with hashing algorithms, blockchain ensures data immutability, a feature that brings unprecedented levels of trust to the data owned by enterprises. In turn, immutability provides data integrity which drastically simplifies audit processes, while providing proof to stakeholders that the information has not been altered.
In an enterprise context, data immutability significantly reduces overhead, streamlines operations and unlocks new value:
- Data integrity is assured by blockchain’s architecture and data storing mechanism. Once data has been introduced in a blockchain network, it cannot be altered without compromising the entire data chain. Any data discrepancies are automatically detected by the system, which allows companies to pinpoint in real-time any tampering attempts;
- Streamlined auditing – as an append-only structure, blockchain provides an indisputable record history of all the data that has been introduced in the network;
- Enhanced efficiency – data immutability enables information traceability and record history which can unlock new business momentum and new opportunities in analytics;
Ideal settlement ecosystem – data traceability, immutability, integrity, and a complete record history can reduce costly business-related disputes from months and even years, to a couple of days.