Blockchain tech pushed to boost cybersecurity, financial inclusion

CEBU, Philippines — Blockchain technology, originally developed for the digital currency Bitcoin, has now evolved into a tool that protects businesses from cyberattacks, as well as to facilitate financial inclusion among the small and medium enterprises (SMEs).

In a two-day summit spearheaded by the Cebu Chamber of Commerce and Industry (CCCI) dubbed “A Summit to Inspire, Promote, & Grow MSMEs Entrepreneurship Program”, D’Wallet Technologies Corporation co-founder and chief executive officer (CEO) Emmanuel Samson introduced blockchain technology to enhance security in businesses in a digital economy.

Held on June 25, 2024 at City Sports Club Cebu, Samson discussed during the summit, which was one of the highlights of this year’s Cebu Business Month, the advantages of blockchain technology for business industries to avoid cyberattacks.

Blockchain technology, as explained by Samson, is a way to record and verify transactions by keeping them in a digital ledger. The chain links the blocks together chronologically to ensure data integrity and security. A new chain is created once a block reaches its data storage capacity.

Samson added that since blockchain technology is decentralized, it does not rely on a single central authority. Instead, it consists of a network of many computers working together to manage and verify transactions. This decentralized feature ensures that no single computer can tamper with the system, enhancing security and trust in the network.

“It is a decentralized server... all data is scattered across different servers... not just in one central server,” he explained in an interview.

He said that the utilization of blockchain can prevent cyberattacks because it allows for consensus to ensure that all participants agree on the validity of transactions and the state of the ledger, hence it is the most secure way of storing and verifying information.

“For example, your driver’s license, once you put that in the blockchain, it... cannot be cheated because in order for someone to verify... (a document) it has to be matched on the blockchain,” he added.

For SMEs, he said that blockchain technology helps in terms of financial inclusion.

“Blockchain allows financial inclusion for the non-bankable or smaller companies that don’t have the ease of opening a bank account or want to expand their customer base through the financial sector,” he said.

The technology will benefit SMEs without access to traditional banking, as it allows them to access the global market by accepting payment in cryptocurrencies from customers worldwide. Blockchain technology is well known for its crucial role in cryptocurrencies but is not limited to them.

In the Philippines, the Department of Information and Communications Technology (DICT) has adopted the innovative tool of blockchain technology through the introduction of eGOVchain, which is aimed at enhancing transparency, security, and efficiency in public transactions. — Renee Ross Villariasa, CNU Intern (FREEMAN)