Impact of Blockchain Technology on Data Security and Privacy: The Mediating Role of Cybersecurity Awareness

Abstract

The fast adoption of the blockchain technology as part of the digital infrastructure has created a significant academic and business interest in how it can reshape the approaches to data security and privacy. Nonetheless, the psychological and organizational processes by which blockchain adoption is transformed into better security and privacy results are underrepresented in the empirical literature, especially concerning the interference of human-centered variables, like cybersecurity awareness. This experiment tested the effect of adoption of blockchain technology on data security and privacy perceptions, mediated by cybersecurity awareness, on IT professionals and university students in Lahore, Pakistan. The study used a quantitative cross-sectional survey design and twenty-four hundred and twenty participants were sampled to include 420 respondents representing six universities (three public and three private) and related organizations in the IT industry in Lahore through convenience sampling. The scale of blockchain adoption, perception of data security, privacy perception and cybersecurity awareness were assessed by use of modified validated scales with questions derived out of existing scales in technology adoption and information security studies. Instruments had good internal consistency (Cronbachs alpha range:.82-93; composite reliability range:.86-95). IBM SPSS Statistics 26 were used to analyze data in descriptive and preliminary data analysis and SmartPLS 4.0 and AMOS 26 to conduct structural equation modeling and a mediation analysis with bootstrapping (5,000 samples). The findings affirmed the presence of a significant positive direct influence of blockchain adoption on data security ( =.41, p =.001), privacy perception ( =.37, p =.001) and cybersecurity awareness ( =.48, p =.001). Cybersecurity awareness had a significant mediating role between blockchain adoption and both data security (indirect 95% CI [.087, .218]) and privacy perception (indirect 95% CI [.074, .201]) which is a partial mediation. Model fit indices were excellent (CFI = .962, RMSEA = .048, SRMR = .062). These results hold major implications to the cybersecurity policy, the blockchain implementation strategy, and digital awareness programs in the emerging technology sector in Pakistan.