Emerging Risk In Data Market: Report Reveals Potential $15 Billion Blow To U.S.

Global network security. Vector

A new report revealed that as few as three days of downtime in a major data center could blow a $15 billion hole in the U.S. economy.

Specialist insurance provider Lloyd’s and risk modeler AIR Worldwide partnered to produce a comprehensive emerging risk report outlining the dangerously centralized nature of data centers today.

Countless businesses and individuals rely on cloud services to run their daily lives. Search engines process over 100 billion queries monthly, Google Drive and other cloud-based file storage platforms are growing in popularity nationwide, and Amazon Web Services provides rent-able disk space and computing power to any person or business interested in outsourcing computing power as a way to save money.

Since businesses like Google, Amazon, and Microsoft each have a huge portion of the cloud market share, the collapse of any one would cause mass economic fallout. But how could a data giant be slain?

“Clouds can fail or be brought down in many ways – ranging from malicious attacks by terrorists to lightning strikes, flooding or simply a mundane error by an employee,” said the head of innovation at Lloyd’s, Trevor Maynard.

Concerning words for the82% of companies reportedly saving money by switching to the cloud. The truth is, though data centers hold incredibly high interest in preventing all downtime, there are inherent security threats to having a centrally controlled system of supercomputers.

Any potential malicious actors or cyber threats could very realistically target a data center for the financial gain, for millions of individuals’ information, for control over a mass amount of computing power to execute some larger plan, or for any number of other reasons.

Now, obviously a security breach of this kind isn’t something that would be easy to do, but it could happen. What about rethinking the system?

Cryptocurrency had a big year in 2017 and as it continues to grow, so does the underlying technology. The blockchain and its many use cases have started to bloom. One such blockchain is iExec. In essence, iExec aims to be the Amazon Web Services of the cryptocurrency world. What makes it different is that it is decentralized.

Decentralized computing power from regular people worldwide linked by a blockchain could fully solve the problem of malicious actors. If one person gets their computer hacked, the network remains safe because each computer is running different credentials.

iExec is not the only crypto token that is looking for a bite of the data industry apple. Other blockchains are looking to provide cloud storage and hosting for more specified industries.

The risks at stake for the current data market described by Lloyd’s and Air Worldwide are real and could have catastrophic fallout. The budding crypto industry might just have a solution to solve these security issues.

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