Can we crack the chains of blockchain and theft cryptocurrencies? Let’s spy the blockchain network!
Blockchain, Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Tether, ICO, IEO, STO, … ..much more are the jargon that swings around the investors and digital tech enthusiasts. Investors and even financial tech enthusiasts are unaware of the concepts of this booming blockchain technology. The ignorance over the concepts of blockchain, cryptocurrencies have created the mist of security threats and fraudulent incidents happening over the digital currencies.
Blockchain, the top-notch technology can be implemented as Enterprise blockchain solutions in most of the sectors like finance, supply chain, healthcare, voting, gaming, digital identity management and much more. Cryptocurrencies are next-gen digital currencies that can shatter border restrictions, whereas underlying blockchain tech is the next-gen tech that can shatter the trust-free decentralization process in enterprises. The counterfeiting blockchain network is impossible, but to understand this statement you must know the internal architecture of tech.
In this post, let’s vanish the stains that are created over the blockchain technology and cryptocurrencies by clearly explaining the terminologies!
What is Blockchain?
Blockchain is the distributed public ledger that shares data, assets across the network that are cryptographically secure. Blockchain has splendid features such as decentralization, tamper-proof, immutable, peer-to-peer transactions that are strived by most of the sectors. Now, let’s get deeper into the tech!
Blockchain is composed of data blocks that comprise of a timestamp, data, pre-hash, nonce, hash values. Every data block in the network has unique values and it can’t be altered. In order to modify the block value, one must be approved by more than half of the network nodes. Of course, it’s impossible for a person to modify the block and get verified simultaneously from the rest of the community people. Let’s have a brief look at these values!
Ins and Outs of Data Blocks
Every block holds the previous data block’s hash value, in order to maintain the chronological order of asset transaction. Of course, if you’re trying to crack a data block, you must be a grandmaster who can predict the previous hash values and the current block’s hash value. None of the humans has this power so far!
A group of asset transactions that are verified by the network community people who are called miners is added as the data block in the blockchain. The data block once added into the network can’t be modified. Even, if you try to modify the minute data in the block, the output hash value of the particular block will be changed, then it becomes out of sync from the network.
A nonce is a number only used once to diversify the output hash value of the block. The nonce is a 32-bit value that is generated by miners to maintain the value of the current blockchain network. A random value is chosen as the nonce in the data block field.
A hash value of the data block is the combination of asset transactions data, nonce, pre-hash value that is delivered with the SHA-256 algorithm. SHA-256 algorithm generates a 256-bit alphanumeric value that is cryptographically secure. Reverse engineering is highly impossible with the hash value generated and hence nobody dares enough to counterfeit the data blocks of the blockchain network.
By now, you’d have a clear picture of the internal architecture of blocks in the blockchain network. Why is it impossible to counterfeit the blockchain network?
Shall we glimpse through these facts?
Why blockchain is a solid rock that can never be cracked by hackers?
Blockchain network is a decentralized system that has a copy of data blocks in every node participating in the community. Nodes are the computers that are connected as part of the particular blockchain network.
For data modification, a person must reverse engineer the hash value generated by the SHA-256 algorithm and then reseal the data block after changes are made. However, on resealing the data block, the output hash value varies from the previous one and hence it becomes out of synchronization from the blockchain network. Even if the data block is proved to be modified by the authorized ownership, the modification changes must be verified and approved by more than 51% of the nodes. For the widely used blockchain networks like bitcoin, ethereum, ripple, these processes are hectic to pass through. Hence, the blockchain networks are solid rock stones for hackers to crack through!
Then, why are hearing the chaotic news like bitcoin, ethereum, and other cryptocurrencies are hacked? Here’s you go with commentary on these thoughts!
While Blockchain is tamper-proof, why are BTC, LTC, XRP, ETH are hacked?
Sorry to say you’re wrong! None of the cryptocurrencies are hacked. Only the cryptocurrency wallets, exchange wallets are hacked by the fraudulent. Wallets require private and public keys to access or transfer the crypto coins present in them. Hackers crack the private keys of the wallet address and then steal your crypto assets, not the blockchain network underlying.
Cryptocurrencies have added features. Even though these hackers take over your crypto assets while trying to transfer the crypto coins through online transactions, these assets are indicated as stolen. If the owner has proof of legitimate payments, the online transaction of crypto coins is made possible.
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By now you’d have visualized the invisible blockchain network and its solid nature. If you have further queries or thoughts, tap us on the comments page below!
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