An In-Depth Guide To Blockchain Technology For Data Recovery

We seem to be in the middle of immense technological innovation. Artificial Intelligence (AI), VR (Virtual Reality), cryptocurrencies, blockchain technology, NFTs and iGaming are regularly mentioned in popular news articles.

Blockchain in particular, which is the technology behind cryptocurrencies is receiving attention. It seems to be a versatile component and can power more than just financial transactions.

Developers and engineers have been putting blockchain to the test in a variety of applications. From the food industry’s supply chain, secure storage of medical records, and data storage and recovery.

Proponents of blockchain technology in data storage and recovery claim it to be cheaper, more reliable and safer than cloud storage. The technology achieves this in an ingenious way by storing data on the unused space of user’s devices, instead of centrally. This not only saves costs and provides those users with potential income but also creates multiple data copies making retrieval and recovery easier.

The rapid rise and implementation of cryptocurrencies such as Ethereum, Bitcoin and Altcoins has helped to develop a robust network of users and sound blockchain protocols, on which much of this new innovation can be built.

The uses of blockchain are bound to increase as time goes on, providing solutions, insight and possible profit for those at the forefront.

 

How Does Data Loss Occur?

Data loss can occur for a number of reasons, including cyberattacks, malware, hardware failure, natural disasters, or accidental deletions. Traditional data recovery methods are often costly and frequently ineffective.

 

A Brief Explanation Of Blockchain Technology

The real benefit to blockchain technology is that data is stored on a decentralized network. Distributed ledger technology (DLT) records transactions across multiple computers. Once the data has been registered it cannot be altered, ensuring transparency, security and immutability.

Traditional databases rely on a central authority which increases the risk of single-point failure and data loss. Data that is recorded on a blockchain cannot be altered or deleted, providing a permanent record and a stable source of data retrieval. Participants in a blockchain network have access to the same data, providing trust and accountability. Advanced cryptographic techniques help to protect data from unauthorized access such as hacking and malware attacks.

In blockchain storage, files are first broken apart into smaller components called shards. Each shard is then copied to prevent data loss should anything go wrong during data transmission.

 

What Are The Advantages Of Blockchain Data Storage And Recovery?

Cost

One of the biggest advantages of blockchain data storage when compared to cloud storage seems to be cost. Centralized cloud storage centres prevent data loss by making copies of your data and then storing it in different data centres. Multiple backups provide a certain level of security in case of data loss but also create surplus information, which customers are paying to have stored. In addition, cloud storage requires expensive enterprise-grade hardware, cooling systems, storage space and maintenance teams.

Data stored on blockchain is placed on the devices of users across the world. Individuals and businesses can profit by renting out unused space on their hard disks, helping to cover their initial device costs and device maintenance needs. Blockchain storage can cut up to 90% of the cost of centralized cloud storage facilities.

Safety 

Spreading data across a network of computers makes unauthorized access difficult. Hackers can no longer reach information through one, centralized source. The process of sharding and encryption add to higher levels of security and data safety.

Scalability

Cloud storage data centres need to be expanded to create more storage for users. Blockchain networks can scale easier, as they take advantage of free space on devices that are already in use.

Efficiency

Data recovery times and downtime due to data loss can be reduced using blockchain storage, as automated recovery processes using smart contracts can be set up. This means that less tech support is required within your own company and fewer hours need to be spent communicating with a data storage centre to get data back manually.

 

Possible Applications Of Blockchain In Data Recovery?

Hybrid Solutions

Blockchain technology does not need to replace existing cloud storage facilities. Stakeholders can form hybrid solutions, where cloud storage services take advantage of the network of decentralized devices. Companies such as Filecoin and Storj are already using blockchain technology to create reliable, decentralized data storage networks. Data safety, innovation and income levels can only improve if cloud storage and blockchain storage companies collaborate rather than trying to replace one another.

Disaster Recovery Solutions

Businesses, private individuals and government entities can make blockchain part of their disaster recovery strategies. Disasters can include natural disasters such as floods and hurricanes, but also hardware theft or failure, and cyberattacks.

Financial Services

Banks, stock markets and other financial institutions rely on data accuracy and are responsible for its protection. Blockchain technology can help these institutions to ensure that financial data is always recoverable by securing transaction records and automating auditing processes. The stability of the system reduces the risk associated with data loss and allows institutions quicker recovery times in case of a loss.

Healthcare Data Recovery

Healthcare records are varied, substantial and often critical. Blockchain can provide a secure and tamper proof platform for healthcare providers, doctors and hospitals to store patient records. The data stored cannot be lost, corrupted, or accessed by any unauthorized party providing patients with higher levels of trust. Data lost to corruption or hacks can be recovered easily, using the original records stored on the decentralized network, ensuring continued patient care and accurate record keeping.

 

What Stands In The Way Of Blockchain Based Data Recovery Models?

Despite the lower costs, improved security and higher levels of transparency, blockchain developers still face several hurdles in wider scale adoption:

Regulatory Concerns

Regulation of the cryptocurrency and blockchain sectors are continuously evolving and differ from country to country. Businesses will need to navigate the complex regulations and laws regarding implementation and data privacy and consumer protection, especially in the fields of finance and healthcare.

Technical Complexity

Blockchain technology is a relatively new field, and it requires a high-level of education and technical expertise to master. As the demand for the technology grows, organizations, businesses and governments will need to invest in training and education schemes to keep up the labour supply.

Data Privacy Issues

Storing sensitive and private information on public blockchain networks comes with inherent risk. Data privacy and consumer trust will require solid data encryption. Hacks and data losses of the blockchain system can have a real impact on its implementation and consumer acceptance.

Energy Consumption

Blockchain networks are often criticized for their excessive use of natural resources and high energy demands. Companies will need to make an effort to reduce their consumption in order to make blockchain for data recovery palatable to a wider market.

 

What Could Blockchain’s Future In Data Recovery Look Like?

As consumers and businesses create more data, companies are tasked with the safe and reliable storage of it. Companies that wish to succeed in the industry can focus on the following areas of expansion:

Interoperability

To ensure wider adoption of blockchain technology for data storage and data recovery, developers will need to find ways for different blockchain platforms to share information and communicate with one another.

Enhanced Data Privacy Solutions

As mentioned, data privacy issues represent a real hurdle to blockchain technology. Companies will need to look to even more sophisticated ways of encryption.

Widespread Adoption Across Industries

With blockchain technology evolving as quickly as it is, more industries are showing interest in the service. Data recovery using blockchain is bound to increase across sectors of healthcare, finance, governmental data storage and supply chain management.

 

In Summary

Blockchain technology has the potential of providing safer, more transparent and lower cost data storage and date recovery solutions across various industries. If developers can guarantee data privacy, overcome issues of regulation, work with existing cloud-based services and calm environmental sustainability concerns, then they are assured success.