Is blockchain secure?

transparent

One of the most interesting and often misunderstood concepts about blockchain technology is user transparency. Some say that blockchain gives you privacy while others say it's transparent. Why do you think that happened?

The identity of a Bitcoin trader is hidden through complex cryptography and is only represented by their public address. So if you were looking for a person's transaction history, you wouldn't see something like “Bitcoin Vietnam News sent 1 BTC to Nakatomo Satoshi” Instead, you would just see “1EGVxAATp4VTV5GjihHoDwHTtJ2rqwPKeV sent 1 BTC”

So while the person's true identity is secured, you'll still see all transactions made by their public address. This level of transparency has never existed in a financial system before.

From the point of view of the CryptoCurrency world, if you know the public addresses of major companies, such as banks or funds, you can search and review all the transactions they have made. If this happens, it forces them to be honest and cannot be hidden, this is truly something they have never had to deal with before.

However, we are quite certain that most of these companies will not trade using cryptocurrencies and even if they do, they will not conduct ALL of their transactions using cryptocurrencies. use electronic money.

Invariant

The immutability of blockchain technology means that once recorded in the blockchain it cannot be tampered with.

Imagine how valuable this would be to the financial system? Cases of embezzlement can be prevented because they simply cannot fake anything on the blockchain's system.

The reason why blockchain is immutable is that it is a cryptographic function called a "hash". The description is easy to understand as follows:

Imagine, a hacker attacks block 3 and tries to change the data. Due to the properties of the hash, a small change in the data changes the hash cipher function, which also leads to the change of the hash stored in block 2, now the changed data of block 2. will lead to a change in block 1, and so on . It means completely altering the chain, which is not possible. This is exactly how blockchain achieves immutability. I believe this site can give you more knowledge: Bitcoin exchange.

Blockchain technology for security and safety is described in many ways. First, new blocks are always stored linearly and in real time. If you look at the Bitcoin blockchain, you will see that each block has a position on the chain, called a block height.

Once a block has been added to the end of the block chain, it is difficult to go back and change its contents. This is because each block contains its own cryptographic function, along with the hash of the block before it. Hash is created by a mathematical function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash changes as well.

This is really important for the security of the blockchain system. Let's say a hacker tries to modify your transaction from Amazon so that you have to pay for the purchase twice. As soon as they edit the amount of your transaction, the block's hash will change. The next block in the chain will still contain the old hash and the hacker will need to update that block to hide their tracks. However, doing so will change the hash of the block.

Thus, in order to change any block, a hacker will need to change every subsequent block. Recalculating all those hash values ​​would take an enormous amount of computation and this is not possible. In other words, once a block is added to the blockchain, it becomes very difficult to edit and impossible to delete.

To solve the reliability issue, blockchain networks conduct a test of the computer that wants to add blocks to the chain. These tests are called the user consensus model, and it requires users to prove it before they can join the blockchain network. The most typical example is that of Bitcoin, known as proof of work.

In Bitcoin's proof of work system, computers have to prove that they have done the job by solving very complex computational algorithms. If a computer has solved one of these problems, they will be eligible to add a block to the blockchain. The process of adding blocks to the blockchain is called network mining, and it's not that easy.

In fact, according to BlockExplorer statistics, the rate of successfully solving complex mathematical problems for mining on the Bitcoin network was about 1 in 5.8 trillion in February 2019. the program must run at a significantly high cost.

Bitcoin's proof of work renders network attacks useless. If a hacker wants to hack into the blockchain, they will need to solve complex computational problems at a scale of 1 in 5.8 trillion. The cost of organizing such an attack will almost certainly far outweigh the returns.

So far, Bitcoin's Blockhain network has not been hacked and it is absolutely secure.

The future of Blockchain

First proposed as a research project in 1991 and blockchain is like most new inventions in the past two decades, businesses around the world are still researching, evaluating and testing about technology carefully and carefully.

In recent years, with many practical applications to the technology being deployed and explored, blockchain finally made a name at its 27th year, largely thanks to bitcoin and cryptocurrency. As a common keyword for every investor in the world, blockchain was created to make the business and management of businesses and governments more accurate, efficient and secure.

Conclude

As a distributed ledger technology, blockchain is capable of delivering improved features including security, transparency, accountability, and efficiency to networks and organizations. This technology enhances privacy and eliminates the need for trust. It also creates a valuable internet network where users can conduct cross-border peer-to-peer transactions and ensures a fair distribution of benefits to the parties involved in the network.

Blockchain technology and cryptocurrencies do not just appear, but they hold the power to transform all industries and areas of life, from finance, agriculture and big data to government, to government. and law.