The Blockchain: The Future of VPNs?

Bitcoin. Ethereum. Blockchain.

You have probably heard one of these names in the news recently. Both Bitcoin and Ethereum are decentralized cryptocurrencies, a unit of value created through mining on technology called the Blockchain, and they have been exploding in value over the last few years. The way in which these differ from other banking/currencies is that there is no central authority that has power over their transactions and creation. Everything is done on an open ledger (a large open book accessible to anyone) known as the Blockchain. This underlying Blockchain technology can be used for a host of other things including smart contracts, secure identities, and even virtual private networks (VPNs).

THE BLOCKCHAIN OUTSIDE OF CRYPTOCURRENCIES

Bitcoin was the first major cryptocurrency to gain notoriety, but soon after Ethereum came along which allowed for different applications. Ethereum creates smart contracts using the Blockchain, and with this flexibility programmers are able to build their own applications on the Ethereum Blockchain. The possibilities of what it can do are endless. There are several governments that are currently exploring using this technology to create a new secure form of digital identification to replace traditional identification cards. The private sector is beginning to utilize the technology to create secure large-scale transactions, like real estate escrow that is secured through the Blockchain.

Recently a new avenue that has begun to use the Blockchain to improve older technology are VPNs. There are a few new players to the market, but is decentralizing a process that involves so much security and personal data a good idea?

DECENTRALIZED SECURITY?

Privatix, a new player to the Blockchain VPN space allows users to take their unallocated bandwidth and let others use it as a VPN. It bills itself as a “Decentralized and 100% autonomous P2P VPN Network on blockchain with the first Internet bandwidth marketplace powered by it’s own crypto-economy.” Similarly, the Mysterium Network uses open source software to power a decentralized VPN network. But how can a decentralized approach lead to greater security?

For a traditional VPN, they have several servers but they are still one third-party entity that is vulnerable to attack. Using a decentralized approach, the points of entry to a nefarious actor are diffused throughout the entire system and encrypted. These points are spread out to so many locations, it makes them difficult to target. By decentralizing the information it ensures there is not one single point of failure. This also protects against power outages, internet outages, and other disasters.

A comparison of centralized vs. decentralized VPNs. Credit: Mysterium Network

BLOCKCHAIN – THE NEW NORMAL

As Blockchain tech hits larger audiences each day, more people are able to take advantage of the numerous benefits that it provides. VPNs on the Blockchain are truly the future and their decentralized nature, like Bitcoin and Ethereum, make them less vulnerable to cyber-attack and threat. Taking the VPN experience to the Blockchain is a game changer that allows for greater performance, security, and less cost to the user. Are you ready to hop on the Blockchain?