BLOCKCHAIN: HOW SECURE IS IT?
Since the advent of this new wave of technology in 2008, it is amazing how relevant it has become. From monitoring supply chains to cryptocurrency, its importance keeps evolving with time. Despite its many benefits, people still wonder if Blockchain is secure or not. And, no thanks to the sudden rise of cybercrime over the years. In this article, we will explain in detail what Blockchain means and why it is secure.
What is Blockchain?
In simple terms, Blockchain is the storage of digital information in a public database. The data are called “blocks.” When you put this information together, it is referred to as “chains,” therefore, generating its parent name Blockchain. Blockchain itself is a digital tool used to build other applications.
For instance, when you purchase an item in e-commerce stores like Amazon, your details are saved in a block. If you make another purchase with the same information, it forms another block. The series of blocks form a chain. Each unique information is recorded with a code called “hash”. A Hash is a series of numbers and letters produced by Hash functions, and it depends on both the previous and present transactions. A small change in transactions creates an entirely new Hash.
Is blockchain secure?
Blockchain allows people to share valuable data securely. Blockchain stores data using sophisticated and innovative software rules that are very difficult to manipulate. Blockchain has thousands of blocks on every chain. And each hash on the chain has a unique code. So to hack information on Blockchain, the hacker has to manipulate every hash of the block. Therefore, making it close to impossible to penetrate the Blockchain.
What makes blockchain secure?
Cryptography secures the records on Blockchain. Every network on the chain has its private keys unique to every transaction. Also, these keys act as a signature on the web. Any attempt to change this record will notify the network about the change in a signature. With this, it makes it difficult for hackers to penetrate the Blockchain. Here are three factors that make the Blockchain Network air-tight.
- Consensus protocol
The consensus protocol is an agreement between the participants of a network. The agreement is concerning the validation or authenticity of a transaction. For instance, to join a new block to an existing blockchain, the new network must go through a “test.” These tests are referred to as consensus models. It requires the new network to prove it’s authenticity before joining the preceding Blockchain. Consensus protocol makes it difficult to infiltrate a blockchain.
Usually, to own, share, and store a piece of information, you need to have ownership of it. The data can be gotten through various means: buying, creating, or asking for permission. It makes it easy to change information traditionally.
On Blockchain, the information is transferred to all the blockchain networks. When changes are made, every network on the chain has to validate the change. Once every network authenticates the changes, it will automatically update on the Blockchain. Decentralization makes it easier for Blockchain to have a single version of the truth.
Cryptography is the use of complex mathematical algorithms to prevent cybercrime. Every data on the Blockchain are cryptographically hashed. It means every data has its unique identification on the chain to protect its identity. The hash of a block is determined by two factors: the block and hash. Therefore, to change information on the blockchain, you have to change the preceding hash on every chain. There are thousands of blocks on every chain. It makes it hard to access the information on the block, making Blockchain secure.