The introduction of blockchain and smart contract technology has rapidly changed with the way people and various organizations do business across the globe. No doubt, this technology is more than just a game changer but a dynamic revolutionary. One of the
most significant achievements of this movement is the creation of bitcoin.
Unarguably, the cryptocurrency community has generally chosen to believe that the introduction of bitcoin will bring about a more viable and efficient monetary system. Obviously, this cryptocurrency has already begun demonstrating its sustainability by opening
up channels for instant payments with nearly absent fees. Interestingly, you don’t need much disk space to store bitcoins.
When it comes to sending and receiving money on the bitcoin network, this technology has managed to simplify the process for people drawn from any part of the world to engage in easy transactions without the need of an intermediary or middle man. This is
mainly because its blockchain development allows for a pseudonymous use of the cryptocurrency. What matters most is for users to employ the right cybersecurity methods to keep their monetary transactions safe and secure.
As a matter of fact, this system makes it possible for transactions to be made on mere electronic devices and even over cellphone networks as it requires little hardware to operate. Thanks to the ingenious development of viable blockchain technology, bitcoin
users can effectively and efficiently perform transactions while keeping their financial activities safely hidden away from prying eyes.
What makes the blockchain technology secure?
The use of blockchain technology to store and transfer valuable data is highly appreciated by many industrial sectors including healthcare, finance, education, IT, etc. This is mainly because it offers a quick, easy, secure, and tamperproof means of sharing
information within an already established network. Aside from these, it will be difficult for anyone looking to transmit or save information to use a blockchain-enabled platform to perform such tasks.
Unfortunately today, many people employing blockchain solutions through various ways do not really know what makes the technology secure. To properly understand this, let’s consider bitcoin’s blockchain. Without an accounting ledger, there will be no history
of any transaction made to be presented as shared data.
Security is always of the essence when performing financial transactions with cryptocurrencies like bitcoins. Generally, it is difficult for attackers to manipulate data on the network simply because the blockchain technology is designed to enhance data
storage with innovative software rules and extremely sophisticated math. With these, it can be difficult for anyone – no matter how skillful they are – to penetrate into the network’s database and steal valuable information.
Generally, there are two major elements or properties that make blockchain development theoretically secure or tamperproof. They include a consensus protocol and a cryptographic fingerprint. While the former represents the process by which nodes agree on
a shared history in the network, the latter is concerned with the identifiable pattern, mark, or characteristic that is uniquely created for each block.
Bitcoin works with a blockchain technology that uses a “proof-of-work” protocol. This technology requires nodes – a network of computers - to enhance the storage of the ledger in multiple copies. Basically, it is the duty of these nods to verify the validity
of transactions submitted to the ledger by users on the network. Those who own these nodes are referred to as miners. As a form of reward, miners earn bitcoins whenever they successfully add new blocks to the chain.
Understanding the consensus protocol
Generally, Bitcoin miners need to always prove that they performed the needed computational work before they can be able to earn a reward on the network. During its blockchain development, quite a lot of computing time and energy is required to generate
a hash which is commonly referred to as the fingerprint.
Since a new hash will need to be generated when altering the block, fingerprint is required in blockchain development to serve as a unique kind of seal. At this point, the nodes will need to verify whether the hash matches its block or not. It only when
the verification exercise has been carried out that the respective copies of the blockchain will be updated with the new block. This is simply what the consensus protocol is all about.
When adopting blockchain solutions, it is always important to note that the hashes can also be regarded as the links in the blockchain. Just so you know the unique hash of the previous block can be well-found in each block. That is why it is generally difficult
for hackers to find their way easily into the technology because they will need to calculate a new hash for not just a single block but for all subsequent blocks if they want to retroactively alter an entry in the ledger.
Unless a hacker has more powerful computers than the other nodes on the network that will allow for the quick alteration of subsequent blocks, there is basically no means of penetrating a secure network. Today, many sectors from across various industries
are adopting relevant changing from their traditional ways and adopting relevant blockchain solutions simply because they are immutable or tamperproof.
How blockchain is been used today
There is a diverse array of sectors that have already begun applying efficient and dynamic blockchain solutions. Aside from the banking and finance sector, this technology is widely being used in retail, distributed energy resources, real estate, logistics,
and supply chain management. Obviously, many enterprises in various industries are excitably interested in adopting this technology to enhance greater access to customers and promote better service delivery.
Urvish Macwan is Digital Marketing Expert at Hyperlink InfoSystem, top
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