Blockchain technology serving Cybersecurity and Crime Fighting.

Blockchain.

Today, more than ever, we live in a world dominated by technology, where the web represents the new dimension of communication and expression. The natural change in society and technology has led to a new form of adaptation and, of course, also a change in criminal forms.

Over the past 10 years, we have witnessed significant change with the introduction of an innovative technology: Blockchain. We have discovered how it can be used to create much more resilient, secure, and distributed data structures than we could have imagined, going beyond the sad association with Bitcoin. But is it possible to apply this technology to prevent criminal phenomena, especially cybercrime? Let’s try to understand together.

It almost seems like an oxymoron, the new Blockchain technology is actually not new. As early as 1991, an “information chain” was used as an electronic ledger to certify that saved digital documents were not modified. Considered a very complex technology, with the use of codes and keys, but with a simple idea: to create a decentralized registry (no central control entity), a distributed network (no central server), and above all public (there is no owner), so that transactions are executed and recorded immediately. In other words, an innovative concept but at the same time with great attention to security.

Characteristics and applications.

As mentioned earlier, when we talk about decentralization, we refer to two possible scenarios, namely the two existing categories of Blockchain:

• Permissionless, an absolute manifestation of decentralization, where everyone can participate without the need for authorization;
• Permissioned, where only some can participate, effectively centralizing the structure.

A fundamental aspect lies precisely in the characteristics, such as cryptographic hash functions, a process in which any input is transformed into a fixed output or precisely into a hash. Through various calculations, this input is subjected to an algorithm (called “Hashing Algorithm”), which produces a finite number of characters that refer exclusively to the original input.

Another characteristic we find in the digital signature. Think about it, it is a tool used continuously in cyberspace, where? Whenever we visit a site that starts with “https,” where digital signatures are used to establish mutual trust between the user and the server, an effective way to prove that a message comes from a specific person and not, for example, from a hacker.

In Blockchain, the concept is similar, where users generate the so-called “pair of keys,” or a public key and a private key linked together by a mathematical relationship, which is equivalent to creating an account on the Blockchain. In other words, the public key is created to be distributed publicly, to receive messages from other users, like a home address, while the private key is used to certify to the recipient that the message comes from a specific person and not from others and, needless to say, must remain secret. Without these two important characteristics, hashing and the “pair of keys,” Blockchain would not exist.

Despite this technology being very often associated with cryptocurrencies like Bitcoin, it actually goes far beyond the financial sector. In the coming years, it will be able to introduce new business models and at the same time radically transform the currently predominant models. Thanks to its peculiar characteristics, possible applications will range from the accounting sector to the energy sector, to supply chain control, from the insurance sector to voting systems and personal data protection. These and other potential uses, associated with cryptographic assets, become a new mode of representation of trust value detached from current canons, producing new and interesting challenges for cybersecurity professionals.

Cybersecurity and Blockchain.

It is necessary to remember that absolute security does not exist, but it can be prevented and especially avoided. When we talk about Blockchain, we often enter hypothetical discussions, especially when we talk about cybersecurity. It is worth noting that cyber-security-related issues cost the global economy around $450 billion annually. Many security companies are adopting decentralized storage criteria for prevention of cyber fraud and data theft, with a distributed public key infrastructure for user or device authentication.

Continuous attacks and threats perpetrated against companies and government entities, especially using DDoS attacks (Deliberate Denial of Service), are rampant and widespread mainly due to our Domain Name System. If our data is in a centralized position, it will be much easier to penetrate and steal such information, as opposed to a blockchain structure, which is decentralized. We distribute information on various nodes, making them practically impossible to hack.

The constant threat to devices represents one of the major obstacles. According to a survey by Gemalto (an information security company), 96% of companies and 90% of consumers believe that their IoT devices are not entirely secure and that a particular regulation should be provided. The main fear is that a hacker can take possession of personal data or take control of the device. However, the use of blockchain returns to our advantage and is starting to show the first results. Many companies, including IBM and the Australian telecommunications giant Telstra, are at the forefront of using this technology to protect devices, where data transactions are tamper-resistant and validated through secure and intelligent contracts, or used to protect IoT ecosystems by verifying people’s identity through stored biometric authentication data.

But if we also consider a perspective of reducing tax evasion, smuggling, and protecting competition in various business sectors of our society, this technology is once again our ally. Take, for example, a fuel distribution company where the blockchain is widely used. From the transparency of the supply chain’s perspective, the company can track and control every phase of the fuel distribution process, obtaining important business intelligence information. We would have a transparent and accessible supply chain since multimedia data is recorded every day and then sent to the blockchain. The system stores, certifies and easily makes the information available to controllers and final consumers. It also allows, effectively and efficiently, ensuring that all documents are categorized in an unmodifiable way and are accessible to all stakeholders.

Conclusions.

Of course, not everyone agrees on the use of this technology, and the debate on the prevention of cybercrime and its suitability is always open and inflames the cybersecurity sector. It is evident that incentivizing security experts and technicians to contribute to the fight against cybercrime by sharing information helps detect crime faster because the dwell time (the amount of time a virus remains dormant inside a system before activating) is one of the most significant threats. This means that speed is an essential source in the fight against cybercrime!

We can say that the challenge will most likely be to make the technology easier, more effective, and above all, more economical, as the recovery of existing infrastructure may not be an easily attainable reality for everyone in terms of money. But the thing that should encourage us the most is that this blockchain technology is already solving many problems, so the hope is that it can only improve and simplify our lives.

SOURCES:

• CLUSIT 2019 report on ICT security in Italy;
• Excerpts from Stefano Bistarelli’s report at the 10th Cyber Crime Conference 2019;
• Nakamoto Satoshi, “Bitcoin: a peer-to-peer electronic cash system” – 2018;
• Simone Cedrola, “Blockchain technology: characteristics and possible applications” – 2018;
• Christina Comben, article on Coincentral – 2017;
• European Commission launches the EU Blockchain Observatory and Forum.