CYVO Ecosystem

Understanding Blockchain Encryption: The Basics for Data Security Online

Author: CYVO Admin | 05th May, 2022

As the volume of digital data grows exponentially, so does the risk of it being lost, stolen or hacked. And this is not just limited to government and corporate databases. Smaller organizations, as well as individuals, are increasingly storing personal data such as health records, financial records, and other sensitive information in digital form. This poses a serious problem for organizations as well as individuals. The risk of data being lost, stolen or hacked is high especially when data is stored on multiple online web-based platforms. To prevent such risks, organizations are turning to blockchain encryption as a solution. In this article, you will understand what blockchain encryption is and its benefits and how it can help you keep your sensitive data safe.

What is Blockchain Encryption?

Blockchain encryption is a decentralized and distributed ledger technology that allows for the storage of data in a transparent and secure manner. Blockchain encryption ensures that all data on the blockchain, or database, remains encrypted at all times. This data is stored in blocks, with each block containing a timestamp and a link to the previous block. This way, it becomes almost impossible to tamper with any information on the blockchain.

What is the Risk with storing Data Online?

Imagine the risk of storing your sensitive information online without a third party who would be able to recover it if the need arises. Also imagine your records are stored on someone else's server which means they have access to them. If they wanted to, they could change or delete your data without you knowing. Blockchain encryption is essentially a way of encrypting digital records so that only those with permission can decrypt them. The encrypted data is recorded on a public ledger for accountability and verification purposes and cannot be altered by anyone other than authorized parties.

Why Use Blockchain Encryption?

One of the most popular ways to protect data is through encryption. Encryption is the process of encoding information so that only authorized parties can read it. In a centralized database, all data resides on a central server. This makes it easier for hackers to attack and steal sensitive data. When data is split into blocks and spread over various servers, the risk of hacking decreases significantly because the hacker would need to hack all of the servers in order to access data.

Benefits of Blockchain Encryption

A blockchain is a type of public ledger where transactions are recorded chronologically There are two types of blockchain encryption- Public Key Infrastructure (PKI) and Hash tree. PKI requires the use of a private key, whereas hash tree does not require any key as its authenticity is verified through its node distribution pattern. Blockchain Encryption is decentralized. It makes it difficult for hackers to steal your data because the system's decentralized nature means that it would be difficult for a single hacker to alter data across the entire system. Data cannot be changed without others noticing thus the blockchain's design makes it very difficult for hackers to steal any data without anyone knowing about it and immediately sounding alarm bells. This means that even if someone manages to access your account, they would not be able to view all data due to encryption and thus surely are unable to change or delete your data without anyone noticing.


Blockchain encryption has quickly become the standard for data security. It’s a powerful and more secure way to protect your data online. With this guide, you can understand blockchain encryption and what it can do for your business. CYVO’s Digital Assets ensure you will always be a step ahead with industry leading encryption and data security. The impenetrable CYVO OS is your gateway to security and peace of mind, followed by the Ultra Secure Browser, Crypto Wallet and Stealth Storage.

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