The increase in personal data theft has been one of the drawbacks of digital transformation. Hackers are targeting government databases. Like the 2017 Equifax database breach, database breaches have exposed millions of Americans' names, Security Numbers, birthdates, residences, and driver's license information. Blockchain data formats, according to Booz Allen Hamilton, strengthen network security by minimizing the possibility of a single point of failure, making database breaches more difficult.
Blockchain approaches to data protection, including such controlling online identity and internet access, are being investigated by the Department of Homeland Security. According to McKinsey, the technology may be used to store hashes of citizen papers on the blockchain, enabling governments to give a verifiable electronic copy of these documents when they need to be accessed.