Blockchain Technology – Is The Emerging Technology Really Secure?

As we make our way towards a revolutionizing and innovative world of technology, data has suddenly fallen at risk. Perhaps because as one side of technology improves, the ripples of innovation also reach the shadier aspects of it. Hence, personal data online is now at more risk than it ever was before. See this how you must, but blockchain technology offers an elegant and one of the best solutions to your security measures for your enterprise or establishment.

Putting all the transactions, information and other data in a set of blocks and then assigning each block a hash secures your data. This is perhaps the most basic working of blockchain technology. The hash code of the blockchain is resistant to any sort of tampering. This changes upon slightest of editions, making its design to be tamper-proof, immutable and secure. However, what makes people raise this claim in the first place?

Blockchain Technology Is Decentralized

The blockchain technology is built on a decentralized network. Here, every bit of data is passed and updated to all participants consistently. Hence, everyone gets a single version of the information, and not any other. If any changes are to be made, all and every participant must validate those changes. Only then will the changes integrate with blockchain. We can say that while blockchain offers a single version of the information, there is no single point of failure.

Hashing & Cryptography of Blockchain

We should pay our credits to complex mathematical algorithms for preventing attacks. All transactions in blockchain technology are hashed using cryptography. They are then included in the block. In hashing, an input value is taken and then algorithms are applied to produce a new value which is “hash digest”. The digest is of a fixed length and it is incredibly difficult to guess the value of it using the input value. The slightest change in the value makes the changes in an unpredictable way. This hash is present in the block header along with the previous block, which generates a new block hash. This is then put on the next block header and so on. This forms a chain which an authorized user can trace back to its source.

In simpler words, while everyone can see transactions happening from point A to point B, and validate its authenticity, only the users sitting at both ends can access the information.

Consensus Protocol

This is an agreement of the majority of the participants in the blockchain technology network regarding transaction validation. A single user may validate the transaction, but the entire network will confirm the credibility of the validator by checking their “proof-of-work”. In this way, if there are a few malicious participants in the network, their opinion is weeded out and taken as an anomaly.

While all this may give an image of an incredibly safe procedure for transfer of information, this is not quite absolute. You see, while smart contracts can automate several tasks, they are only so good as their coding. Although they are not part of the blockchain, the mere interaction with it makes the whole chain susceptible towards hackers. If the code is written poorly, data is still at risk.

Hence, perhaps it is conclusive to say that blockchain technology is only as secure as its infrastructure. When laying down a blockchain network, make sure that you are taking services from people who know how to utilize cryptography-based security solutions. The technology might still be emerging, but it is getting better every day. Schedule a call with us so you can see how InvoZone can make your establishment more secure.

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