Blockchain-Enabled eCommerce: Securing eCommerce with Blockchain Technology
Unless you've been living under a rock for the last few years, you've likely heard the word "blockchain" bandied about, typically about digital currencies like Bitcoin.
Numerous sectors, from the real estate market to the healthcare sector and beyond, have been heralded as potential game-changers by proponents of blockchain technology. And if even half of the unrest is genuine, Ecommerce blockchain has the potential to revolutionize the online retail industry.
Even if bitcoin payments are the most visible benefit blockchain gives eCommerce, the technology may have far-reaching applications beyond this.
Information security in the age of ubiquitous internet connectivity is a growing source of anxiety.
Data is one of the most precious commodities for any company. Therefore, it is a major problem for businesses of all sizes and industries to keep their data safe against theft and breaches.
Your success or failure hinges on how well you protect sensitive information. The frequency and severity of data breaches can devastate your organization, particularly if you run an online store.
As more and more devices become internet-connected, data security becomes an even more pressing issue. A data breach can have far-reaching effects on your business, such as lengthy downtimes, delayed operations, and even legal battles.
According to the Identity Theft Statistics given on the Tiger Mobile website, in 2015 alone, hackers compromised 4 million accounts (changing passwords so account owners could no longer access their bills), causing a loss of over $2 billion.
Exploring the Role of Blockchain in eCommerce
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| Role of Blockchain in eCommerce |
Data Privacy in the Blockchain Era
Blockchain is a clever innovation that facilitates digital transformation by producing an immutable digital record for monetary transactions (as in bitcoin) and highly secured applications for data security.
Blockchains are decentralized networks that can accommodate millions of users (or data files) worldwide. Information stored in a Blockchain network cannot be hacked or stolen. A user can encrypt or lock a piece of data using a private key in a secure computing network environment, analogous to a block of building material. The information must keep from here on out. It is also impenetrable to hackers and other outsiders.
As a decentralized database, blockchain stores copies of its customers' data across multiple nodes. Each file breaks down into blocks containing a cryptographic signature of the preceding block to create a permanent log.
A blog post on Steel Kiwi described it this way: "In order to damage or distort a blockchain, a hacker would have to wipe the data stored on every user's computer in the worldwide network." In addition, the data does store on millions of computers worldwide.
If the hacker managed to access the network, the data would still be available on the nodes that were not compromised. Blockchain technology is the most secure method of storing data online because of its complicated structure.
Bitcoin's original blockchain application allows multiple users to do simultaneous transactions via a secure network. Every bit of data and information in the system is encrypted. On diversity, it was stated, "Nobody can tamper with the blockchain without anybody else noticing immediately."
Security Breaches in the Online Shopping Industry:
The unauthorized disclosure of sensitive data is known as a data breach. There are several ways in which a data breach can harm both organizations and customers. They are a heavy burden on the wallet, potentially ruining lives and careers before being repaired.
Large-scale data breaches may seem all too often in the media these days. That said, it shouldn't come as much of a surprise.
More and more of our data does store digitally as technology develops. Because of this, cyberattacks are becoming commonplace and extremely expensive.
According to research by the Ponemon Institute, the average worldwide data breach cost is $3.86 million. Given that the average price of a stolen record is $148, it's clear that cybercrime is a serious problem for everybody who uses the internet.
Cybercriminals finds corporations and enterprises extremely alluring because of the sheer volume of data that can steal in one go.
4 Types of Ecommerce Data Breaches
With the proliferation of e-commerce, the rise of mobile and virtual work, and the expansion of online communication and commerce, conducting business is becoming less of a hassle.
1. The theft of confidential data
It's disheartening to consider the possibility of internal information leaks caused by employees, but such incidents do occur. And it happens by accident rather often.
Verizon said the following in the same report: "Admittedly, there is a clear spike in internal actors in the dataset these past years, but it is more likely to be an artefact of greater reporting of internal faults than proof of true malice by internal players."
If you lose a valuable item like a cell phone, computer, or product prototype, it could get into the wrong hands and put you in danger.
2. Attempting to guess a password
Humans tend to believe they are special. However, humans share more common mental processes than we may give credit.
That's why it's so important for users to adhere to safe password practices; otherwise, hackers might easily be able to guess their passwords. Kaspersky found that 31% of persons surveyed have a handful of passwords to pick when making new accounts, and 13% use a template or consistent pattern to create new passwords.
One difficulty is that credit card information isn't necessarily among the consumer data taken in massive data breaches.
Addresses, birthdays, names of children, names of significant others, and other personal details are sometimes uncovered. How often do you use your pet's name or birthday as a password? Information like this can use to guess weak passwords. An easily guessable password is the root cause of many hacking incidents.
3. Phishing
Several types of attacks go under the umbrella name "phishing," but they all share a similar thread: social engineering. According to Verizon's DBIR report, phishing was the root cause of almost 20% of data breaches.
By manipulating a target's emotions and rationality, an attacker can get them to provide important information or take actions that benefit the attacker.
As an example, "your CEO" at work may email you with an urgent need for you to transfer funds or provide personal information. (Insider tip: that's not your CEO.)
A second example is an email that appears to be from your bank but actually asks you to enter your login information. The email's link could lead you to a fake login page for your bank. Your login information will be visible to an unauthorized third party, even if it looks suspiciously similar.
4. Computer Virus
According to Microsoft, malware is "a catch-all phrase to refer to any software designed to inflict damage to a single device, server, or computer network."
Malware can be used to steal data, move data, delete data (or threaten to in the case of ransomware), install keyloggers that record all keystrokes, and more. Magecart uses malicious software to infiltrate e-commerce platforms that are weak to attack. Email links clicked on by users (almost 40% of all malware vectors), and malicious attachment downloads (about 15%) are the most typical ways that malware is spread.
Blockchain in e-commerce: Why and How
Making Your Customers Feel It's Safe Buying from You
Your e-commerce enterprise will never succeed if your clients aren't content and don't feel safe making purchases from your website. Protecting sensitive customer information requires a high level of encryption on the server, and blockchain technology makes this possible.
It is crucial to reassure clients through pop-up notifications, terms and conditions, and privacy policies concerning the protection of their personal information. The cumulative effect of these measures is to increase confidence among customers. When people can rely on one another, life is good (on both ends).