The blockchain is globally considered as one of the most secure
ways for storing and transferring digital information but how do you determine
the security of blockchain or find out whether it is secure enough for your
systems? Let’s discuss.
The security of Blockchain lies in its ability to ensure
transparent, immutable and tamper-proof transactions. This is managed by the
various characteristics of blockchain, such as Decentralization, Cryptography
and Consensus. So, the security aspect of a blockchain can only be understood
in the terms of these features.
Decentralization - A
single distributed ledger of transactions
Traditional ways to store and transact information are mostly
centralized. Such a system maintains a single centralized copy of the transactions
performed through the system. Since the entire system is in control of a single
entity, there is a high probability of fraud in transactions as the centralized
copy is easy to access and modify. Also, informing all the users of the network
about every change or update is a time-consuming and costly matter.
Blockchain provides a solution in terms of a decentralized
network where a copy of the same information is distributed among all users of
the network. Each new transaction or change is verified by the network before
it is added to a new block in the chain. The benefit is that even though the
transactions are public, they are not easily mutable. In order to update a
transaction, each copy of the ledger with each node must be updated
simultaneously. Therefore, each node/user would know about every change and can
immediately spot a fraud transaction or error.
Cryptography - Complex
algorithms to divert attacks
We all are familiar with the term cryptography. It involves
mathematical algorithms designed to identify and prevent attacks. So, what’s so
great about blockchain cryptography?
You might be wondering by now that how the information and data
in a blockchain are protected against threats like cyber attacks. This is where
cryptography comes in. Data on a blockchain are protected through complex
crypto algorithms. Each new transaction in the network is hashed, or in other
terms, masked to hide its original identity. This is done via a predefined
cryptography algorithm which converts the input value in a totally random
string of a fixed length. This is then added to the blockchain.
In order to access hashed data, the user will require the
public-private key combination that was used to encrypte that information. The
private key of each user is also encrypted into a public key which is visible
to other users who want to send/receive data with that user.
The great thing about cryptography is that the information once
encrypted or hashed cannot be reverse engineered. This is how information is
protected on a blockchain.
A perfect example of a blockchain-based secure marketplace
ecosystem is Era Swap Ecosystem, which employs very secure hybrid blockchain to
protect user transactions on the platform. It utilizes the Ethereum (ERC20)
blockchain to manage public transactions and the hyperledger/Quorum blockchain
for internal transactions. The benefit is that all the transactions on the Era
Swap blockchain are completely secure, protected and transparent.
Visit: http://www.blocklogy.org/
Download: https://play.google.com/store/apps/details?id=com.blocklogy.appp
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