As highlighted in part one of this series, blockchain may hold the key to a more transparent and trusted online future. However, that future can’t be realized until pioneering organizations holistically treat a range of security vulnerabilities threatening to undermine the distributed ledger technology before it becomes mainstream.
In fact, we believe pioneering organizations must work proactively to identify and address security measures independently and in concert with ecosystems’ partners as they conceive and act upon their blockchain strategies. While the challenges loom large and may not be fully apparent given numerous technological imponderables, forward-leading organizations should view this as an opportunity to build in security as a key component of their transactional services. Doing so will help gain the trust of customers and other key stakeholders across their business ecosystems.
For starters, organizations with blockchain business ambitions would do well to develop a comprehensive policy that addresses all key security vulnerabilities with measures that facilitate effective shared monitoring, control and compliance. This is critical since many business leaders see blockchain as a technology that is seemingly impenetrable, which is clearly not the case – as recent hacks suggest. As most savvy observers know, any technology conceived by humans can be cracked and compromised by humans working in concert with incredibly potent computing algorithms. It is therefore vital to inculcate a culture of compliance with emerging security policies.