Have you ever wondered where a digital ledger is stored? Where are all the details of various digital transactions mentioned? Is this transaction information being secured from cybercrime?
We’re all aware that cybercrime is stealing authorized sensitive data to extort money or reach personal information like social security numbers, addresses, card details etc. Cybercrime costs at least 400 billion dollars annually to our global economy.
So, how can we secure ourselves from phishing attacks and hackers?
One solution to this problem is to have digital databases, enhanced enough to provide us with the highest standard of data transparency and integrity. And for this, in the year 2009, a highly advanced database system was implemented called Blockchain security system.
Blockchain systems work on the principle of decentralized configuration that is nearly impossible to modify or tamper with by the hacker in a particular time frame due to complex cryptographic properties such as digital signatures, unique hashes and node type network protocol.
A blockchain system stores sensitive digital information like transaction details and user data in various blocks and then links those blocks together through implemented distinguishing hashes. The hashes are different for each chain and serve the purpose of intensive security.
The three major elements on which blockchain system works are :
- Being a trustless system
- Being immutable
- Having network consensus.
Being a trustless system means that any code or function guaranteed to execute is written as long as the network is online. Blockchain networks assume any individual node could attack it at any time. It is why a consensus protocol is kept in the system.
The blockchain allows one to store data and secure it using various cryptographic properties. When data enters a block, it cannot tamper and this is called immutability.
Much like before if now anyone tries to tamper with a blockchain database, network consensus would recognize and shut down the attempt. Blockchains consist of nodes. Nodes could be within one institution or all over the world on the computer of any citizen who wants to participate.
For any decision, a majority of nodes need to be in consensus. Instead of a central authoritative figure, there is a democratic system. So, if any one node is compromised, the other nodes would automatically recognize the problem and not execute the activity. Hence, your information is safe, and the possibility of fraud is reduced.
Multilayer decentralized assurance properties of the Blockchain make it the most reliable and suitable prevention against cybercrimes. It is why nowadays, the blockchain is so popular among Crypto traders and Real Estate buyers. Cryptocurrencies like Ethereum(ETH), Dogecoin(DOGE), Cardano(ADA) and the most popular among youth, Bitcoin prefers a Blockchain security system to protect Transaction information.
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