How secure is Blockchain

How secure is Blockchain
How secure is Blockchain

Is Blockchain safe?

If you are concerned about whether blockchain technology is really secure, know that this is a natural trend. After all, a flawed system can open up holes for hacker attack and hence bring a lot of headache.

To speak of security in relation to this subject, we need to remember what we speak now little. Each of the transactions performed has a unique code, that is, a digital signature. This code is verified by the users themselves and the transaction must be approved and then be incorporated into the blockchain by means of a block.

The surveillance and verification of all this information is done by the users logged into the network, the so-called miners. This verification is an extremely important step to avoid fraud.

What is hash?

Another factor that contributes to the security of this process is hashes. Each block has its own hash, a specific cryptographic signature.

As you already know, in addition to loading your own signature, the block has also recorded the hash of the previous block. This is what makes the work of hackers much more complicated.

After all, to access the information contained in a block, you must decipher the encryption of its hash and also the previous block. As everything is connected as a chain, this process would have to be done successively and practically would have no end.

In addition, to circumvent the blockchain you would need to change the data recorded on each of the various computers connected to the network. This fraud would require that the hacker’s computer have a processing capacity greater than the total of all computers in existence today. Something impractical nowadays, do you agree?

The security that the blockchain system offers is so relevant that companies and even government institutions are demonstrating an interest in using the technology. This is because, the idea allows not only to protect data, but also to share it with whoever you want without giving up control over that information.

Do you want to know how this technology can stop being something unique to Bitcoins and incorporated into our daily life? Learn more in the following section.

Blockchain: possibilities beyond Bitcoins

The blockchain nowadays is directly linked to the Bitcoins, since the currency was created almost a decade ago. Despite the strong bond, it does not mean that everything will continue like this forever.

Many enthusiasts believe that this technology can be the key to a new way of storing and accessing information. When we think of this new proposal for sharing and validating information, the possibilities can be numerous.

It is no wonder that among those who study new technologies, the blockchain has already turned to book cover. The vision is that the creation of decentralized information networks can completely transform the way in which business will be done from now on.

If today we consider the Internet as the most efficient way to share information with people around the world in a matter of seconds, blockchain can offer a new proposal.

In the financial system, for example, we are already seeing the blockchain changing the landscape. The technology is expected to help simplify operating systems and maintain a safer, fraud-free environment.

And we do not necessarily need to stick to transactions that involve money and financial assets. It is believed to be possible to use this new system to archive and share other things, such as music, art, votes and documents, for example.

Advantage using Blockchain

Besides practicality and safety, the technology of the moment offers another advantage: dispensing intermediaries. In the near future, there is a chance that we can share data or make a purchase directly from people around the world, without having to pay fees to companies, stores or banks.

This opens up a range of possibilities where the blockchain can be used. For example:

  • Carbon Credits
  • Medical records
  • School Histories
  • Diplomas
  • Identification documents such as passport
  • Car registrations
  • Property records

Enthusiasts believe that by using this technology it will be possible to catalog, track, certify and authenticate information and valuables in a whole new way. And better: without getting at the mercy of fees and bureaucracy.

With the advantage of providing security and being accessible to any user, since everything will be registered in a large database shared with users around the world.

Despite the great expectation surrounding the blockchain, it is still not certain that it will be incorporated into our daily lives. But it is always good to keep an eye on the changes that may occur soon.

Did you like to learn more about this technology that has gained the spotlight? Now that you understand the relationship between Bitcoin and blockchain, how about learning more about other investments?