With the popularity of cryptocurrency, interest in blockchain grew. Thus, distributed ledger technology that is blockchain began to be used in multiple areas such as the IT industry, banks, and government. These are the areas where safety is very important. Blockchain is a technology that processes, stores information, and identifies the customer.
This leads to the question: how safe blockchain technology really is?
In order to answer this, you would need to understand basic concepts and mechanisms that provide reliable protection. Hence, there are two important functions that play an important role in the security of the blockchain system.
Consensus and immutability
Consensus reconciles the true state of the network and the validity of transactions. Immutability is characterized by the fact that the blockchain prevents the modification of transactions that have already been confirmed. As a result, these two functions provide the foundation for data security. Data is protected by isolation, encryption, and authentication. Due to decentralization and immutability, the security level of the blockchain is very high.
Another very important role in the preservation and security of data is provided by cryptography. Hashing is very important in cryptography. A hash is a set of symbols that carry a unique imprint. It is formed on the basis of transactions and the quantity of each block of stores. When a transaction is processed, the hashes are constantly checked and according to the pyramid principle the check is carried out until the last hash, and then the integrity and correctness of all data is confirmed so that the block would be closed.
Thus if someone illegally wants to take possession of funds and tries to change something, then the transaction will be invalid. And, the blockchain will recheck everything. Therefore, the network consists of blocks that cannot be changed if they are closed. Maintaining a network requires the continuous and uninterrupted operation of several powerful computers. Blockchain has the most computing engagement on the planet today.
The data storage system in the blockchain is decentralized. So, this means that the data is saved on all computers of the network participants. If someone wants to hack that data, then such a hack has to be done on all computers.
However, the entire system is completely decentralized and does not have control nodes. Every day more and more such nodes are formed, and the chances of hacking are constantly being reduced. As a result, the more people use blockchain, the more powerful and secure it becomes. In conclusion, it’s safe to say that Blockchain offers very high-level security standards if implemented properly.