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of the system there is a whole new science
that happens which regards reconciliation
and settlements.”
Previously, a bill payment to an
organisation such as Dubai Electricity and
Water Authority (DEWA) was a relatively
slow, multi-step process. In contrast,
Blockchain enables the payment to be
transferred in an optimised time.
With the launch of the system the number
of corporate and individual users that
the DubaiPay portal managed to attract
exceeded all expectations – by 2017 it had
generated an incredible Dh12 billion through
more than 10 million transactions and
demonstrated the strong demand for smart
payment solutions.
Transparency
Because a Blockchain database is
distributed and interconnected, it provides
several essential services. The first one of
these is transparency.
“Because data is embedded within the
network as a whole, it is by definition public,”
said Kalle Bjorn, of Fortinet.
“The second is that it is difficult to corrupt
because altering any unit of information
on the Blockchain would also modify all
subsequent blocks unless huge amounts
of computing power are used to override
the entire network. Next, because it is
distributed, it cannot be controlled by any
single entity. And for that same reason, it
also has no single point of failure.”
FEATURE: DISRUPTIVE TECHNOLOGY
“In private implementations, this consensus
could be negated through the elimination of
a majority of supporting servers through a
security compromise.”
Weak links
Unsurprisingly, security technologies will
have to adapt to the security needs of
Blockchain technology.
However, there is bad news: “The inherent
operation may be relatively secure
through the use of encryption and strong
algorithms,” said Bjorn. “But cybercriminals
will inevitably find the weak links of the
Blockchain system and attack them.”
While Blockchain technology guarantees
integrity, security components such as access
control and privacy are things that need to be
overlaid. It is important that all participants
be protected from unauthorised access.
“In a permissioned Blockchain, outsiders
should not be able to tamper with the ledger,”
said Bjorn. “Therefore, the administrator of
the permissioned Blockchain must minimise
its attack surface. In practical terms, this
means that every participant is a target and
that traffic to and from participating entities
must be protected using policies.”
Security concerns
Although Blockchain, built under
cryptographic principles based on public-
private key cryptography, is generally
considered to be more secure than
traditional systems, this hasn’t stopped
security concerns being raised.
Security compromises
If private Blockchain technology is being
used, there are a finite number of servers
supporting the transactions within the system.
“If a certain number of those servers are
compromised, there is a high degree of
certainty control if the currency is lost,”
Bjorn said.
“In other words, if you have 100 servers
maintaining your digital currency and I
take over 51 of them, I win. Blockchain
technology is based on a system consensus
model, where the most recent and complete
block is retained as the true record.
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As Paul Potgieter, Managing Director – UAE,
Dimension Data, explains: “Blockchain is
commonly known as a decentralised ledger
which, by design, introduces decentralised
trust due to removing traditional
intermediates from the business value chain.
Kalle Bjorn, Director, Systems
Engineering, Fortinet
However, this also introduces a plethora
of checks and balances that allow for an
increased level of immutability.
“The shift in moving from a central authority
to a greater user-based community trust
brings into question how businesses can
leverage Blockchain technology by limiting
the impact of privacy and security.”
Recommendations
So how do businesses realise secure Blockchain
and ensure its full potential? Potgieter makes
the following recommendations:
Ensure board and c-level accountability:
Blockchain is a strategic imperative and
must be on the boardroom agenda. It
has potential benefits relating to brand
reputation, regulatory compliance, consumer
markets and the scalability of the business.
Position Blockchain as a business enabler:
It creates new business opportunities and
value. Transformation and innovation
initiatives can only succeed when Blockchain
is made a strategic priority.
SECURITY TECHNOLOGIES WILL HAVE
TO ADAPT TO THE SECURITY NEEDS OF
BLOCKCHAIN TECHNOLOGY.
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