Blockchain and Cybersecurity

Blockchain and Cybersecurity

Our recent Blockchain article touched on the superior digital security offered by Blockchain/ Distributed Ledger Technologies (“DLT”).

Over time we anticipate that legacy payment systems, workflow software and general transaction processing systems will be replaced by dedicated blockchain/ DLT networks. The Internet in its present form is riddled with cybersecurity risks. The current crop of cybersecurity firms was created for the current Internet paradigm and therefore will be ill-equipped to provide value in the coming blockchain paradigm. Everything from airline reservation systems, to various supply chain networks (think of food and energy supply chains), to online banking, to home and car title processing, to medical care payment processing and more will eventually be replaced by dedicated blockchain networks that are far more secure than today’s Internet protocol and legacy payment systems.

In the meantime, if every American would simply turn on two-factor authentication (“2FA”), it would probably do more good and protect more asset value than all of the current crop of cybersecurity firms combined.

Separately, it is difficult for us to get excited about Google’s (GOOG) recent acquisition of Mandiant (MNDT) in an effort to bolster Google Cloud’s cybersecurity layer. Sure, Mandiant will add value to Google Cloud, but the entire system is broken and therefore the current approach to cybersecurity is a cyber-band aid when in fact the entire public Internet protocol needs to be replaced by dedicated DLT networks. The cybersecurity risk profile posed by today’s Internet grows each day as more users engage and as more transactions take place on the world’s aging Internet.