Safety Problems of the Blockchain Technology

Safety Problems of the Blockchain Technology

15/06/2018 Off By Cam Stroud

Thanks to the increased interest in bitcoin and other cryptocurrencies, the technology of the blockchain is of an increased demand and popularity. The blockchain is an extremely universal invention and its intended use goes far beyond the IT field. In that way, many people are interested in it and use it for their needs.

Each user has a public and private key – both keys are secure and encrypted. They allow you to perform a certain set of actions in the system. Suppose that two users want to make a currency exchange, for example, with bitcoin. One of the users, using the public and private keys starts the transaction process and the other, also using the keys, confirms the action. As a result of such joint actions, the transaction is submitted for consideration in a public peer-to-peer system.

At this point, one of the sections of the whole system checks the transaction information. This is done in order to make sure that the data coincides with the information already available. In other words, if the information-verifying nodes confirm that the party that launched the transaction does not actually have the cryptocurrency that it is trying to use for transmission, then the transaction will be rejected.

Basic Safety Principles

You probably always wondered why the blockchain is considered to be such a safe system? After all, technology working in this way is far from a novelty. And, it would seem, the joint actions of users that occur in the digital environment can be tracked by intruders. In fact, such fears are more than reasonable. And they are one of the reasons for such significant jumps in the rate of bitcoin.

The basis of blockchain technology is the electronic register of all financial transactions. In the blockchain, the registry of records is decentralized – this means that a single computer or system can not gain control of the entire amount of data. So, in order to gain access to the main registry of records, it would be necessary to organize an incredibly complex and well-coordinated operation, according to which thousands of devices would be attacked simultaneously.

Another principle that provides exceptional security is the transaction chain itself. The main register of records is a long chain of consecutive blocks. Each block that enters this chain is only part of the overall structure, which originates from the very first operation performed in this system.

This means that anyone who decides to change information about one transaction before this will have to carefully and accurately change all the records leading to this transaction. Proceeding from that, the proposed intervention seems to be an extremely complex process, which is also one of the advantages in building the security of the blockchain technology.

It is possible to make the conclusion that the system will function properly if it is used correctly and accurately. Also, it is worth keeping in mind that its security depends on the availability of a sufficient number of users and many security breaches appear because of the human factor. Therefore, do not forget that any system has weaknesses and blockchain is not an exception to this rule.