Wednesday, April 21, 2021
Blog Posts

VPN vs. Blockchain: Which One is Better for DER Dispatch?

Next Generation of Privacy Technology? Blockchain Network

Due to the pandemic, providing customers and employees remote access to both on-premise and cloud-based servers and applications is more common than ever. The number of users and access points has grown tremendously. It can be difficult to keep track of all this data. Remote access technologies such as Virtual Private Networks (VPNs) provide remote access functionality in a secure and controlled manner.

What is a VPN and How Does it Work?

Why VPNs Are Not Safe As We Think

Although these technologies are simple and easy to install, they suffer from serious security issues and ever-evolving threats of today. The legacy of VPNs was introduced more than 30 years ago. This enables secure access to the internet through a point-to-point connection by creating an encrypted tunnel.

These connections make enterprises more vulnerable to cyber-attacks and data breaches because of remote access to the organization's entire internal network. Another point of failure is the process to identity user access and authentication. There is no segmentation or user control in VPNs. Hence, there is no traffic visibility, network segmentation or on-premises security. These technologies are not proper for dynamic networks due to the large requirement of computer hardware and constant management. This makes applications more complicated to scale and rapidly adjust to new users and network locations.

Blockchain Network Alternative As A Highly Secure Solution

The emergence of blockchain technologies are alternatives of such centralized and legacy systems that tackle VPN security concerns. Rather than worrying that your VPN service is selling your data, any internet connection you start is distributed across numerous blocks.

These technologies process transactions by multiple distributed peers, and verify transactions regarding peers’ votes to ensure the correct data is stored, and authorized users have triggered the transactions. In a blockchain, a consensus algorithm involving peers is used in a voting mechanism to verify transactions independently. Assuming a peer is unavailable, hacked or unintentionally does not work well, other peers serve the request with no interruption.

In addition, incoming transactions and data are cryptographically stored in synchronized distributed ledgers. This unique feature makes a chain of encrypted blocks that is completely tamper resistant.

Therefore, it is impossible to manipulate or decrypt data without a predefined smart contract with preprogrammed logic. Moreover, blockchain is more than a bridge between clients and servers since security policies can be encoded in distributed smart contracts, and can be applied to transactions. Policies protect expensive physical assets (e.g., batteries) and data against cyber attacks.

Blockchain In The Energy Sector

Energy distribution, allocation, and production has always been an important sector for nationwide economic growth and prosperity. Blockchain can improve every aspect of energy by improving security and reliability.

Benefits of Blockchain in the Energy Sector

Environmental Sustainability

Blockchain helps make the energy sector more environmentally sustainable. It also overcomes legacy energy sector efficiency issues and provides a network where it is possible to produce, store, and distribute energy more efficiently.

Reduced Costs: 

The costs associated are reduced when it comes to infrastructure and operational aspects of the energy sector.

Improved Transparency: 

The use of distributed ledgers improves transparency.

Highly Security:

The use of authorization and authentication in blockchain increases the level of security.

Now that you know about the importance of blockchain technology, you can make educated decisions on whether blockchain would benefit your business. Beyond being used as a buzz-word, Blockchain truly is a revolutionary technology with the potential for huge impacts on every sector – especially energy.

You might also like
these new related posts

If you’re interested to view all our use cases, click here.

Get your energy bills under control.

Contact us