How Blockchain Based Storages are Better than the Traditional Cloud Storage?

The next few decades are going to be about big data. All industries have storage requirements not only to process but also compute tremendous amounts of data. Blockchain-based storage, even in its infancy stage, is emerging as a better alternative to the traditional cloud storage systems.

How does Traditional Cloud Storage system work?

Let’s say you have a small business where you maintain a specific type of data over the cloud. For the same, you use a service such as Google drive. When you upload and save something to the Drive, Google stores it one of its many data centers spread across the world. Next time when you need the data, your computer will send a ping request to the location where your data is stored, and that’s how you’ll be able to access your files or documents.

Challenges with Traditional Cloud Storage System

Physical location, of course, is the first challenge with traditional cloud storage system. So in the above example, it’s possible that the data center and your location is far apart; which can cause delays as well as errors. Not to forget, the usage of large-scale servers is expensive. Along with multiple levels of operation and constant monitoring, the tech maintenance takes up significant resources.

However, the critical vulnerability of a traditional cloud storage system lies with privacy issues and even tempering of data. Since the data technically is being controlled by one authority (in our example – Google), it virtually grants the access for compromising of data at multiple levels. In fact, in Google’s privacy policies, one of the points is regarding how it can share your data legally with large corporations.

Since there are hierarchical layers to organizing and maintaining the data, the scope of human errors is quite high. That puts the safety of your data at risk.

What’s the alternative?

Few small teams and organizations across the worlds have started using blockchain based storage. It helps them in three significant ways:

  1. It significantly reduces the chance of human error

  2. Increases the overall security and privacy of any data

  3. Compared to the traditional cloud storage, the blockchain-based storage is cost-effective and efficient

How can the blockchain be used for storage?

Blockchain, as a technology, decentralizes the cloud storage by eradicating the requirement for a trusted third party. Since every single transaction is logged along with being time-stamped, data is sufficiently secured, and it cannot be tampered with in any form. The involved node can’t be changed, so blockchain-based cloud storage ensures that the data at all given points is accurate. A blockchain-based storage system is both transparent and traceable. It ably deals with the shortcomings that are a crucial part of traditional cloud storage modes.

Conclusion:

The amount of data generated over the Internet is only going to multiply at a tremendous rate. The need of the hour is a cloud storage system that doesn’t compromise on data immutability while being affordable and efficient. Blockchain-based storage might be the solution the world will sooner or later need.

Breaking Blockchain Conjecture

Our political, economic, as well as legal environment structures itself in the form of contracts, transactions, and its record. It is a system as old as time with evidence of world’s first civilizations too creating a system to keep track. Along with verifying identities and making a note of the exchange, these records serve as history also in many ways.

However, these systems that held on for centuries are shaking in the face of digital transformation. The processes have just not been able to keep up with the pace with which the world is evolving. In this digital era, like most things, the way we maintain these tools along with its execution also needs to change.

Where does Blockchain come into the picture?

Experts believe that blockchain is the solution. Blockchain, as a technology, resides at the crux of Bitcoin along with what’ve now become other virtual cryptocurrencies. In layman’s words, blockchain is a distributed ledger. Being open, it records peer-to-peer transactions without including third-party intermediaries. It promises data immutability along with its permanency. Verifiable data and records form the network. In fact, as the technology evolves, there are concepts such as ‘Smart Contracts’ that can even trigger transactions automatically.

What’s all the Hype About?

More than anything else, blockchain shows a glimpse of the world could be. A system wherein transactions are recorded, stored, and verified on a digital network. Every record has a timestamp along with a signature, and no data can be tempered with, recreated, or in any way corrupted. A self-sustaining system to the point where intermediaries like lawyers, brokers, and bankers will not be needed anymore. Different parties will transact directly with another with little or no friction whatsoever. That is the vision that blockchain promises.

Will Blockchain Live up to the Expectations?

By now, every business has heard that Blockchain will revolutionize everything in the coming few years. Moreover, while we share the vision of this technology, we think we might overstretching our expectations from Blockchain. Not only blockchain as a technology is in its nascent stage, but there are also security issues that seriously need to be pondered upon. However, the critical thing is that blockchain is a foundational technology. By foundational technology, we mean that several other structures (political, legal, financial) can be evolved and created with it. However, that just might take decades.

So, what should we expect from Blockchain?

There’s little doubt about the potential that this technology holds. In fact, in some industries like finance and healthcare, we already see its impact. The future result will be even more enormous; however, it will not happen next year or even in five years. It will take its own time to slowly but steadily seep into all our structures for good and to change it from within. So while we continue to marvel at the potential, we should also continue to innovate and explore it at this stage.

Conclusion:

The blockchain is here to stay. However, the world needs to start small to correctly understand and structure how and in what ways do we want to evolve Blockchain. The level of development of it will also depend on how effectively it adapts to the ever-changing need of multiple industries. For now, we know that blockchain is going to affect both your business and your world. As for when – the time will have to tell.

Password Strategies for your Crypto Wallet

The digital nature of the cryptocurrencies and crypto wallets is such that it can leave you open to security risks and vulnerabilities if you’re not cautious enough.

On Internet forums, you’ll find stories by people who’ve lost their money because they didn’t adequately secure their cryptocurrency wallet.

The first thing, of course, that everyone does right after creating a crypto-wallet is to set-up a password. Setting a password that is strong is the first layer of protection that you provide to your cryptocurrency wallet. So, set a password which can’t be exploited.

Password choice is a security measure that is 100% in the control of the user. An excellent approach to password-creation is making it close to impossible to guess. A user can use a healthy combination of letters, numerals, and symbols to create a secure, unguessable, password. Another critical point to remember is to avoid using anything personal (like name, birthdate, current identification markers) in a password to protect it from any form of social hacking.

Another way and one that has become popular in the recent times, to secure cryptocurrencies is through 2-Factor Authentication (2FA). If you haven’t yet activated 2FA on your crypto wallet, then you are at a security risk.

What is 2-Factor Authentication?

Along with the login details, 2FA is an added layer of security authenticated via an independent source. When 2FA is activated, it’ll require a code for accessing the wallet in addition to the username and the password.

People often end up not setting strong passwords. And if that’s the only security measure in place, then it creates a security loophole. Not to forget, the password can also be stolen via multiple methods including but not limited to phishing attacks, keylogging, and network sniffing. With 2FA activated, you create an independent mode of authentication. The combination of secure password along with 2FA is a robust strategy to amplify your crypto wallet security.

What Authenticator to use?

The traditional usage is, of course, through getting an SMS on your number. This method is frowned upon by experts because it’s risky and vulnerable regarding security. The ideal approach is to set-up 2FA through an independent, third-party authenticator, such as Google Authenticator.

Some people even prefer email 2FA, because they’re concern about losing their phone.

Types of 2FA Set-up

A lot of crypto wallets platform will ask to choose the type of OTP you want while setting up your 2FA. Technically speaking, there are two forms of set-ups. The first one is called HMAC-based One Time Password (HOTP), and the second one is called Time-based One-Time Password (TOTP). The key difference is that HOTP is valid for an unknown period while TOTP changes in every 30 seconds.

As you can tell, the TOTP approach is safer than HOTP since it doesn’t give the space for the OTP to be copied or stolen in any way. The appropriate change in TOTP ensures security.

TOTP occurs through an authenticator app (such as Google Authenticator). The way this app work is that it synchronizes your smartphone with their app server; thus, providing for that extra layer of secureness in the form of a variable OTP in a 2FA set-up.

What if I lost my phone?

Since the entire idea was to strengthen the security of your crypto wallet, you won’t be able to log into your account. However, there are always a set of private keys, which you should keep as a secure backup. Otherwise, the process of acquiring your account back can be a time-consuming and be taxing.

If you’re using Google Authenticator, you can quickly restore that account by scanning the saved QR code into your new device.

Conclusion:

The holistic approach to password strategy for cryptocurrency involves setting a secure password as a first measure. However, to adequately secure the wallet, one must enable 2-Factor Authentication with a trusted authenticator such as the one that Google provides.