How safe are
cryptocurrencies and blockchain?
Blockchain is a chain of blocks that records transactions of virtual currencies or cryptocurrencies such as Bitcoin. Your role is to make this record definitive and reliable. The data stored refers to the amount of coins that were transferred, their origin and destination, on which dates the movements were made and the place where it is registered on the blockchain.
Storage is done in blocks that are time stamped. At each time window, which corresponds to about 10 minutes, a new block of transactions is formed and it connects to the previous one.
Blocks form a chain as they depend on each other, which makes blockchain a perfect technology to securely store data on another level.
The database is made up of miners who investigate and record all transactions in the sets of blocks. For this, a computer lends its power to the network and receives a digital currency as a reward.
With blockchain network consensus, miners are only allowed to add a transaction to each block if most of the network deems it legitimate. Bitcoin has its consensus measured through computing power.
Blockchain guarantees digital security?
Blockchain impacts both in specific areas of companies and in the lives of customers. From its origins in the context of cryptocurrencies, the information chain created to protect storage plays an important role in digital security.
Even though blockchain is currently splitting off from bitcoin, we cannot ignore that it originated with cryptocurrency. The birth of the concept took place in 2008, with the publication of the academic article “Bitcoin: a peer-to-peer electronic financial system”, by Satoshi Nakamoto (a pseudonym of a person or group responsible for creating bitcoin).
Bitcoin was born in a time of real estate bubble and global economic crisis with the function of avoiding the double spending of values and increasing the credibility of financial transactions in the digital environment. Thus, with blockchain it was possible to eliminate the risk of spending a bitcoin twice.
Blockchain decentralizes data and stores it more securely. Thus, it enables the tracking of information and cybersecurity is one of the main results.
What’s more, the blocks are stored on several computers around the world. Even if they were geographically distant, they are interconnected and when a change is made in the blocks, it is only accepted if the systems that integrate the network allow it.
Therefore, from the moment a computer is hacked, the other equipment will try to avoid the attack. Consequently, intrusion is eliminated by blockchain technology.