Blockchain Technology and Cryptocurrency
Malware, phishing, and DoS attacks are becoming more and more common, with various ransomware attacks occurring every 2 seconds around the world. With the ever-increasing threats to cybersecurity, businesses are investing heavily in the protection of their networks and company data. Companies that fall victim to these attacks are facing major consequences, with the average data breach costing a company $4.24M USD. To prevent cyberattacks, companies are looking for innovative technology to protect major financial and reputational losses.
Will 2022 See the Death of Passwords?
MFA has become widespread throughout the tech landscape as a means to prevent cyberattacks. The effectiveness of MFA tech is well documented, with Google claiming that an SMS MFA system can stop 100% of all automated attacks, 96% of bulk phishing scams, and 75% of targeted attacks. MFA is also easy to use, so employees are able to adapt to the tech quickly.
That said, SMS-based MFA is on the decline. Unfortunately, SMS really wasn’t designed with security and authentication in mind. Messages sent to cell phones can be intercepted through SIM card swapping and rerouting text messages, allowing attackers to bypass the added layer of security normally provided by this MFA measure.
As authentication security continues to evolve we can expect the decline of passwords to continue and alternative forms of MFA to rise in popularity. As YubiKeys and promising passwordless standards such as FIDO2 offer greater security than SMS-based MFA and user-generated passwords, we can expect security-conscious and forward-thinking businesses to rely less on passwords for their authentication security.
As companies continue to roll out multi-factor authentication measures, ReportLinker projects that the MFA market size will grow from $11.1 billion USD in 2021 to $23.6 billion USD by 2026.
Cryptocurrencies and the blockchain technology through which they operate are looking to make a major impact on the world of business. Many have heard these terms, but few understand what they mean and the potential of these new technologies. Even major corporations are scrambling to see how this new technology could fit into their business model and systems for years to come.
In its most simple form, blockchain technology can be understood as a decentralized ledger across a peer-to-peer network. This new technology system can be used in the development of applications used for transferring funds, settling stock trades, voting, and many other issues that are in need of advancement in regards to their processes.
Let’s take a look at how blockchain and crypto technology will impact businesses involved in global supply chain systems, financial institutions, and for business in general.
Given its transparent nature, Deloitte believes that the blockchain can provide participants of a supply chain with an increased line of sight towards the traceability of materials, lowered loss from counterfeit and gray market items,as well as improved visibility and compliance over outsourced manufacturing. Overall, blockchain technology can help to position a supply chain business as a leader in responsible manufacturing, and can improve the efficiencies in which a supply chain business operates.
Considering its broad application potential, businesses in the financial industries are also eager to explore the tech’s possibilities. In fact, 90% of US and European banks have started exploring the new technology and the ways in which it can benefit their operations and their customers’ experience. The benefits that blockchain technology provides for banks and other financial institutions include instant settlements, reduced counterparty risks, and increased transparency, amongst others.
Cryptocurrency is a protocol built on a blockchain and is developed to take the form of a virtual currency secured by cryptography, making it nearly impossible to counterfeit. Bitcoin is said to be the world’s first cryptocurrency, and it remains to be the most valuable and most popular virtual currency in the world. In fact, El Salvador became the first country to adopt cryptocurrency as legal tender when it began recognizing Bitcoin as an official currency in September of 2021. Businesses in El Salvador are now required under law to accept Bitcoin as a payment type.
The adoption of Bitcoin will negatively impact companies such as Western Union that drive revenue through remittance fees. With 23% of El Salvador’s gross domestic product being remittances, Western Union and similar business models will lose an estimated $400M a year from the commission of remittances. With Bitcoin, there are no third party fees and the average cost per transaction is much lower than that of Western Union and its competitors.
Outside of El Salvador, major businesses such as Overstock, PayPal, and even the Dallas Mavericks are now accepting Bitcoins as an acceptable payment type for their goods and services. As the Dallas Mavericks are now accepting Bitcoin as a form of payment for tickets and team merchandise, the use of cryptocurrencies throughout the sports business will become more widespread in the years to come. In September of 2021, the NFL announced an NFT (non-fungible token) deal with Dapper Labs to create exclusive digital video highlights that can be purchased with cryptocurrency.
