Leveraging Blockchain for Enhanced Data Security in Business Management Systems

Abstract

In today’s business environment, data security is an important focus, with organizational management information systems becoming the targets of ransomware and data breaches. Enter blockchain technology that provides better security by decentralizing the networks, implementing cryptography, and making records unalterable. Compared to conventional centralized structures, data in blockchain are dispersed across many nodes, minimizing susceptibility to cyber risks. Its secure, connected structure guarantees the data integrity and openness necessary in finance, healthcare, and SCM. This paper aims to discuss and analyze the use of blockchain in the protection of business data with a focus on its strengths and weaknesses. Some main benefits are enhanced protection of data, logical and clear working of the organization, and fraud prevention through smart contracts. The real-world use cases have shown that enhancing the traceability of the supply chain, financial transactions, and digital identity is possible. Nevertheless, the problems of scale, lack of consistent regulation across the globe, and integration issues remain. The paper discusses such approaches as second-layer technologies, international legislation, and increased training to encourage the use of blockchain. Trends for the future show that integrating blockchain with other advanced concepts like AI and quantum computing will bring revolutionary changes in business security. Through blockchain, such risks are eliminated, and organizations achieve other benefits, such as improving stakeholder trust and optimizing processes. Based on the findings of this work, organizations and firms will be equipped with a guide to the application of blockchain solutions that can build robust systems and maintain competitiveness in a world of escalating digitalization.