Blockchain - How secure is it? - Explored | Homeesolution

How secure is blockchain? – Explorer

As we know that cryptocurrency operates on the fundamentals of blockchain, the technology is majorly used in the trading of cryptocurrency anywhere in the world irrespective of time and amount as the banks.

Each computer system connected in blockchain is referred to as nodes, and the transaction ledger in the chain has to be managed for the verification of the new blocks that are entered into the chain.

Who manages the nodes in blockchain?

Each computer that enters into the blockchain from any location is known as a node and every participant in the activity of filling data in the blocks is the manager of the particular node. The users in different locations are responsible for managing the nodes in the systems, they verify the information that is entered into the blocks is valid and authentic.

They are also called as miners of the cryptocurrency, every user who uses his computer to feed in or validate the information in the blockchain system is a miner. Mining is the process how the more and more cryptocurrency are added in the system for operation. This entry is replicated throughout the blockchain system and every node in the chain will be informed about the entry without depending on any central authority.

Why are there rumours about blockchain being fake?

If we consider the currency that we access in our pockets or in our banks, this is a legal tender announced by the central authority and the central bank of the country.

For example; a $100 note is authenticated by the concerned including the printing, validating and signatory authority of the note, that the value of the note is $100 and more than that nor less than that. Since it is controlled by the department of authorities to decide its value.

But in case of cryptocurrency the value of money is not controlled by any authority so the trust factor is affected of the value of transaction. Why would we trust that any X coin has XX$ value? Hence blockchain technology was developed so that the database will store a certain value of Bitcoin that will be defined depending on various math calculations.

Now there are more than 10000 cryptocurrencies running on the blockchain system and are traded using the secured technology around the world. The rumours and misunderstanding related to blockchain are because of lack of correct information that is put out.

But now the implementation of the blockchain technology is being tested in various countries for operating decentralized security systems to avoid any hacking or tampering of data. This technology will surely be very helpful for all the nations if used for a very authentic purpose. Soon we may see various platforms will be run on the blockchain technology.

How secure are blockchains?

There is a unique security feature in the blockchain itself, as it is a decentralized system. It is very complicated to hack or tamper the blocks that store their own information along with hash of the next block. If any hacker tries to corrupt any block or enter a new block from any node the cross-referring technique of the blocks will easily identify the corruption at any end and will communicate with other blocks and eliminate the tampered block.

All the information or entries are ledgered in the blocks chronologically in form of mathematic calucations which is further converted into a unique combination of number and letters, i.e the latest block is filled with the latest information. In the chain when the previous block sees that the hash of the next block has changed it will immediately verify with the other blocks and the majority of the blocks find the end block or some hacked blocks corrupted all those blocks will be removed from the chain and on the basis of the information of the majority of the blocks the data will processed.

Each block on the chain holds a specific position that is called as ‘height’ of the block, the latest data of Bitcoin shows that height of the blocks in Bitcoin’s chain had reached 6,56,197 blocks so far.

If the hacker needs to hack the blockchain it is mandatory to corrupt majority i.e 51% of the blockchain to fulfil his intentions of robbing the crypto coins. A way of doing this is he has to access all the systems at a single time at different locations as it is decentralized and cannot be managed form any single system. Such a hack would not only require a lot of resources but also a massive amount of money that has to be spent for the activity, which would also lead to a failure looking at the increasing size of the blocks in the system.

If the hacker turns to be smart enough to do a calculative attack after monitoring the functioning of the blockchain over the years. The majority of blocks that are hacked in favour of his group such an act cannot go unnoticed, so the other miners/members of the cryptocurrency can fork to a version of chain which has not been corrupted.

Additionally the hacked blocks/coins need to be traded on the same blockchain system, which the hacker needs to get approved again with the same process by hacking the new fork, hence the hacking would be pointless if the coins are not traded. Instead of hacking the system it would be rewardable to join in developing the system for a better purpose.

This transparent technology is being explored for practical applications in various other operations of sectors for the improvement in the process and how this could be used at its best. Blockchain technology is finally making its way in a much bigger aspects than just the cryptocurrency. This will make the business and system functioning more transparent, secure and efficient in the coming years.

Read More:

What are the types of cryptocurrency?

What is blockchain?

Bitcoin & Blockchain explained

3 thoughts on “How secure is blockchain? – Explorer”

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