Introduction
Bitcoin is controlling the investment market. Who would have thought that Bitcoin will not only cross the $20,000 mark and will also double itself in just three weeks? Last Friday, on 8th December 2021, Bitcoin almost reached $42,000.
Seeing how the market performed in the first two weeks of the new year, the Crypto trade market is flooded with new traders and investors.
With the increasing number of traders and investors in the market, new concerns have surfaced. The major concern is the security to handle all these new traders and their trades. Though we know that Cryptocurrency trade is supported by Blockchain technology, there are people who are proficient enough to find loopholes and conduct fraudulent activities.
Blockchain is considered one of the safest networks in the industry, but just how secure is Blockchain?
How Safe And Secure Is The Bitcoin Transaction Network, And Blockchain Is?
While nothing is 100% secure, Blockchain technology is designed to be immutable. Due to its public ledger technology, all the information shared on the Blockchain network is tamper-proof and democratic. This feature of the Blockchain technology has been achieved by combining the following characteristics.
- Decentralization
- Cryptography
- Consensus
The Blockchain industry is booming quite well. Many companies have started hiring people who are expert in this field you can also Visit here to know more about this networks. If you are interested in pursuing a career in Blockchain, this article might help you understand just how secure the Blockchain network should be.
Decentralization
In the early days, anyone who wants to store, share and process the data or information needs to own it. This process involves lots of variable string from creating, borrowing, obtaining permission to ensuring everyone is aware of the changes made.
Sound Confusing, right?
Well, it is!
Handling information like this can become complex and leave a margin for errors to seep into the whole process.
However, Blockchain, on the other hand, handles the same process with the help of public ledger technology. These methods not only save lots of time, but the margin of errors are reduced to none.
In one sentence, Decentralisation is a single version of the truth that caters to no single point failure. For instance, if you made any changes in one single block, you will need to make the same changes in the other blocks. If not, the node will label your activity as fraudulent activity and discard your changes.
Cryptography
If Cryptocurrency is a body and decentralization bone, then cryptography is the muscle: a complex algorithm that detects any vulnerabilities and deflects the abnormalities. All the data on the Blockchain network are encrypted and hashed to hide the true intent from the outsiders.
Hashing is a process in which every data goes through the hashing process and changes its identity. To put it simply, hashing is the process of encrypting the data (Just like putting password protection on the information).
The best example of hashing is that the private key you use goes through the hashing process and converts itself to a public key. This helps others to send you monetary transactions without stealing your private key.
Consensus
The consensus is the brain of the whole transaction system. It decides which block to add and which node to pitch. The consensus starts with the blocks validating the shared information matching the present rule of the Blockchain network. Once the validation is done successfully, miners compete to solve the complex mathematical algorithm. When miners solve the problem, they share the solution with the network.
This particular type of consensus is known as Proof Of Work. This process ensures that every block has gone through the consensus before becoming an immutable part of the Blockchain ecosystem.
Better Yet Far From Perfection
Blockchain technology is a new technology and is improving with every passing day. Most of the security issues can be easily handled with this technology. When a new problem arises that the current Blockchain technology can not handle, it evolves into a new form of Blockchain technology.
Yes, Blockchain technology is still not complete, but it is still better than some of the highly advanced technology present in the market. If all things considered, Blockchain technology still has enough practical use to survive in the current target and have hidden potential that might be the next big thing in the future.