Blockchain and data protection
Do you know what blockchain is and how does this technology allow transactions with fully virtual currencies?
Even if you don't know it yet, you've certainly heard of blockchain. It is primarily used for mining virtual money. Cryptocurrencies like Bitcoin and Ethereum only became possible thanks to the invention of this technology.
In addition to financial transactions, this tool can be a great ally when it comes to strengthening your company's data protection. Check it out:
But what, in fact, is blockchain?
The blockchain is a database that holds any information that has digital value. Each transaction created is recorded in a block that, in turn, is added to a chain of other blocks containing data already archived. One of the characteristics of the blockchain is that this information is visible to everyone who wants to see it, since what validates the updates is the public verification process of this data. This method eliminates the need for a central authority, such as a bank, and does not lose the accuracy of the stored content.
A bit of history
The technology that allowed the creation of blockchain databases and workflows has existed since the 1990s. However, its first full implementation was Bitcoin, which appeared in 2008. In 2009, this cryptocurrency was launched as open source. Bitcoin is a digital currency and a means of payments with no points of failure.
Other previous attempts to create digital financial models failed because transactions could be duplicated, allowing fraudsters to use the same money more than once. The blockchain, however, solved this problem, since its universal registration and confirmation processes do not open space for fraud.
Thanks to the blockchain, cryptocurrency transactions can take place without intermediaries between users. Soon Bitcoin gained popularity and other digital currencies began to emerge. As a result, blockchain gained more and more notoriety and various market sectors showed interest in the technology and its applications.
How does blockchain work?
The blockchain basically works with information that is stored in connected records or lists and that is spread over a network that provides security and authentication throughout the system. Thus, items such as digital currencies, inventory transactions, and legal documents can be archived on the blockchain.
Transactions are created, then recorded, and finally stored in a block. Through an algorithm, this block is attached to a database that contains other blocks that, in turn, remain intact and immutable. The blockchain is that catalog of connected blocks, in which one records a list of transactions.
Why is blockchain secure?
Because of its nature in the form of a data stream, blockchain becomes more secure as more information is added to it. This is because each new block is created based on the shared precision of the previous block, that is, to commit a fraud a hacker would have to invade and edit the data of all previous blocks.
Blockchains are composed of a cryptographic layer that prevents the tampering and fraud of the information present in them. This provides the ability to improve security and traceability in many transactions.
Blockchain is not Bitcoin
That's right. The blockchain is almost inseparable from its most visible external manifestation, Bitcoin. However, despite being the basis of this and other cryptocurrencies, it's not just that. Nor is it another virtual fad that will soon pass. Blockchains are of great importance between industries and are used as a secure data network for many markets, including supply chains and food security.
The LGPD and data privacy
A General Data Protection Law Brazil was influenced by the European one known as GDPR. Both laws were created to handle collected data in a legitimate and secure manner. A centralized technology for storing data. However, blockchain is characterized by having its information distributed, immutable, and verifiable. Thus, this creates a small impasse for the General Data Protection Law: the privacy of the individual who has their data stored in a technology like this.
The new legislation provides for the right to be forgotten, that is, the individual's right to have their stored data deleted from company records. It turns out that blockchain technology is inviolable, even to insure against fraud. The data, once registered in it, cannot be deleted.
There are, however, some blockchain variables. In some of them, it is not necessary to delete the data, since it is not open. This means that although information is present in a block, it cannot necessarily be read and accessed by anyone. These blockchains can be classified as public or private, open or closed. So, what matters is how your security model and threats are addressed.
Some blockchain projects only process non-personal data, while others are essentially made to process personal data, such as proof of identification or medical records. There are, however, those that can be used to process any form of data.
Clicksign Automation and data protection
Clicksign Automation is an automation and contract management platform. It uses hashing, which is a protection algorithm, to guarantee the integrity of the documents stored in the system. Thus, it securely maintains the inviolability of contracts.
First, a document number and a Log are created when a contract is uploaded. The messages sent through the platform are registered beforehand with a unique number. The clocks that we adopt to record the times displayed by our system are also synchronized with the National Observatory via the NTP protocol.
These are, in principle, some of the procedures adopted by Clicksign Automation to ensure data security and integrity. Along with these methods, we have data protection with control, using firewalls and virtual private networks; as well as authentication processes, with passwords and identification tokens; privacy, with file and transmission encryption; and with integrity with hashing, as mentioned before.
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