Businesses Using Blockchain to Protect Consumer Data


Ecommerce developments are creating some unique issues for today’s leaders, one of which is the burden of protecting consumer data.

Collecting data has become extremely necessary when it comes to ecommerce. But the process of protecting this precious personal information is one that is susceptible to oversight.

IBM Blockchain Solutions

Enter blockchain technology, which companies like IBM have turned to as a solution to network privacy concerns. The tech giant has plans to strengthen drone security. Such plans involve using a system that uses blockchain to verify the flight information of unmanned aerial vehicles. It will also help air traffic controllers identify risks and control access.

The patent application was filed back in 2017. And in those two years, blockchain has gradually developed as a data protection tool for our unmistakably data-driven society. What’s less evident is the fact that there aren’t enough professionals equipped to protect our personal data. In fact, data published on Maryville University outlines that the demand for experts exceeds the supply by at least 2 million roles. The median salaries for data scientists range from $84,300 to $101,560. Salaries will only continue to rise, especially because they are still in high demand. To solve this gap, businesses are following IBM’s lead in ensuring the protection of their consumers’ data through blockchain technology. Currently,  General Motors, is looking to use the technology for managing data collection practices from their automated vehicles.

The Potential for Increased Protection

Of course, blockchain potential for data protection is one key attraction for businesses. Just last year, Business Blockchain HQ published an article on cybersecurity and the role of blockchain technology in it. Protecting consumer data with the same technology involves the same features. This includes the decentralized nature of the blockchain that prevents a single point of attack or theft. It also requires time stamps and several levels of verification that make it virtually immune to fraud and malicious intent.

Companies like the popular startup Oasis Labs are ensuring that third parties can’t take advantage. They are protecting any sensitive information moving through the blockchain. Founder and University of California professor Dawn Song explains that her tech is designed to protect user information inside and outside organizations. For example,  the healthcare industry needs increasing protection for data-intensive and sensitive records. Sensitive medical information is crucial to curing or preventing illnesses. Companies with a large consumer base are also evaluating their own apps for blockchain projects. Presently, testing is occurring with companies like Uber and Apple.

Past and Future Developments

Developments like these can be crucial. Blockchain allows businesses to transact directly with their employees, clients, and consumers. In addition, it ultimately helps ensure data privacy and security. The Facebook and Cambridge Analytica’s data breach scandal in 2018 is forcing legislators to consider nationwide policies on data privacy. For instance, the California Consumer Privacy Act aims to give California-based consumers the right to restrict companies’ access to their personal information. It also entitles users the control over the sale of their information to third parties.

Congressional Action

The U.S. Congress is in talks with industry representatives on regulating the use of consumer data nationwide. Presently, Government and businesses are together looking for innovative solutions for protecting consumer data.

Jimena Brock is a tech blogger who is passionate about the latest innovations in the space of technology. She mostly writes about the potential of the newest technology and state-of-the-art gadgets in the entrepreneurial landscape.

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