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According to Statista, the global spending on blockchain technology is anticipated to increase to 15.9 billion by 2024, from 1.5 billion in 2018. This implies that the use of blockchain technology is expected to increase immensely in the coming years.
Emerging concepts that are exploring the use of blockchain and big data are continuously questioning whether these technologies are secure or not.
Undoubtedly, personal data online is now at more risk than it ever was before. Though blockhain technology is certainly not new, a lot of people are still not familiar with its working, and hence are curious to know how secure this technology actually is.
Read down below to find out more regarding blockchain technology and how safe it actually is.
Security by the Blocks
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?
Before, we begin, if you are interested in knowing what is blockchain technology and how does it work and its types, then you might want to also read: Blockchain technology – Why we need its different types?
An overview of the emerging technology: Blockchain technology explained
Read down below to find out more about blockchain technology.
1. 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.
2. 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 to make blockchain technology secure.
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.
3. 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 network, the mere interaction with it makes the whole chain susceptible towards hackers. If the code is written poorly, data is still at risk.
What can be done to make blockchain technology more secure?
Regardless of how security features a technology comes with, there are always some minor flaws in every system. The right way to tackle these minor security flaws is to minimize these risks to the extent that the become almost insignificant.
Let’s look at some measures you can take while creating your own blockchain system or introducing a currently-recognised system in your organization to make it safer.
- Security should be the top-priority
Security should be on the top of your list. If your system does not do the job, then it’s probably useless, no matter how impressive it seems.
Therefore, data protection and security should be the first priority—Data should be encrypted, even from the workers in your company, avoid lucrative offers of data sales.
Also, you might want to hire top security specialists to ensure there are no weak links in your system.
- Take help from professionals
As long as you are utilizing blockchain technology the right way, your business can reap numerous benefits from it in the long run.
Blockchain is a specialised technology—If you are not sure how to go about implementing it in your business, then you can get in touch with Blockchain experts who can advise you on how to implement blockchain tech in your business the right way.
These professionals can also help identify the security areas that could affect you most.
Blockchains get their high levels of security as distributed systems through the combined use of both; cryptography and game theory. A proper balance between security and decentralization is essential when it comes to creating safe and efficient cryptocurrency network.
As the uses of new technologies in blockchain continue to evolve, so will the the security measures required to meet the security standards of each technology.
Also, emerging blockchain companies are continuously trying to have blockchain technology explained as much as possible, to find answers to all questions that arise regarding its safety.
Still not sure about how to make your system more secure? Schedule a call with us so you can see how InvoZone can make your establishment more secure.