Companies that continue to rely on antiquated security models might as well be hiding their house keys under the carpet and leaving themselves vulnerable to incursion in a world where digital threats are increasing in sophistication and speed.
Traditional perimeter-based cybersecurity measures and rule-based authentication may have been effective in the past to deter cybercriminals and protect sensitive data, but many of the current solutions are struggling to keep up with the development of advanced persistent threats ( APTs ) and a new wave of fraud strategies using artificial intelligence ( AI ).
However, the fusion of bitcoin technology, online identity solutions, and AI-assisted security is emerging as a possible solid strategy for protecting sensitive data, preventing scams, and ensuring compliance.
Organizations are empowered to reevaluate classic security frameworks and reduce the risks associated with unified data backup, identity robbery, and unauthorized access by using distributed ledgers for identity management and security protocols.
Read more: Hackers Don’t Want Keys If Companies Keep Cyber Doors Open
Decentralized and tenacious safety for enterprise is the key to the future.
Attacks are not only common, but they can also be costly and disastrous for businesses nowadays because they operate in a high-risk online environment.
As PYMNTS has covered, among the most devastating breaches during 2024 alone were the Change Healthcare , that led to billions in losses, to the broken defenses at history check firm , that led to the stolen information of 2.9 billion individuals, as well as the Snowflake , that , to include AT&, T, Santander Bank, Advance Auto Parts, Ticketmaster parent company LiveNation and , of the world’s largest companies.
Much of this ecosystem vulnerability can stem from centralized identity and access management ( IAM ) systems, which rely on passwords, single-factor authentication and large databases of user credentials. Even with conventional multi-factor authentication ( MFA ) and security patches, phishing attacks, credential stuffing, and insider threats continue to put businesses at risk.
To address these vulnerabilities, blockchain-based identity solutions can help to provide a decentralized, essentially tamper-proof approach to security.
Blockchain-based digital identity , systems enable users to own and control their identity credentials using cryptographic keys. Blockchain solutions store hashed identity records on a distributed ledger, allowing verification without the disclosure of sensitive data, as opposed to relying on a company’s database to verify an identity.
Companies like and are already piloting , decentralized identity solutions , for secure enterprise access.
” It is essentially an adversarial game, criminals are out to make money and the]business ] community needs to , . What’s different now is that both sides are armed with some , really impressive , technology” , , , chief solutions officer at , , told PYMNTS.
Read more: As businesses convert IDs into payment credentials, digital identity turns into new currency.
What’s Holding Enterprises Back?
With supply chains growing more interconnected, enterprises must securely verify vendors, partners and third-party access. Blockchain-based identity credentials can ensure that only authorized suppliers, contractors and logistics firms access critical systems, mitigating third-party risk and preventing supply chain cyberattacks.
As , zero-trust security models , gain traction, blockchain-based identity solutions provide a , critical layer of authentication and verification, reducing reliance on vulnerable passwords and centralized databases.
” With the world that we live in, digital identities are becoming more used than physical driver’s licenses or physical passports” , , , vice president, global fraud prevention risk services at , told PYMNTS, adding that,” ]Businesses ] need to deploy cyberdefense strategies that can not only detect and prevent fraud but also enable them to authenticate and verify consumers ‘ digital identities in real time, protecting against account takeovers, while seamlessly integrating any updates to their account”.
Yet despite the promise of blockchain-driven digital identity,  , widespread enterprise adoption faces several hurdles around integration complexity, regulatory uncertainty, user adoption and education, and scalability.
Blockchain-based identity solutions must integrate with legacy IT infrastructure, which can be challenging for large enterprises, while employees and customers may resist new authentication models, necessitating extensive user education and onboarding.
And while frameworks like , eIDAS 2.0 and GDPR , support digital identity innovation, there is still a lack of uniform global regulations, and public blockchains can struggle with transaction throughput, which may hinder real-time identity verification for high-volume enterprises should they decide not to rely on a private blockchain.
PYMNTS Intelligence’s 29-page report,” “, a collaboration with , , contains eight charts of proprietary data examining the role of machine learning and AI to help keep fraudsters from getting the upper hand.