HOW DOES THE BLOCKCHAIN SECURE ITSELF?

•A Blockchain is a chain of blocks that contain information and it was created initially to time stamp digital documents to avoid backdating and external alteration or a third-party tampering with it. It was adopted by Satoshi Nakomoto in 2009 which led to creation of Bitcoin which adopted the blockchain technology.

•A Blockchain is a distributed ledger. Once data has been recorded in the Blockchain it becomes difficult to change.

•Each block in the chain has a data, hash and hash of the previous block. The data stored depends on the type of blockchain. A hash is a unique identifier like a fingerprint that identifies a block from another.

•Once a block is created the hash is calculated. Once the hash is tampered with, the hash changes and once it changes the block which contains the hash no longer remains the same.

• The hash of a previous block creates a chain of a previous block. A particular block which contains the hash of previous block is known as the Genesis block

•Changing a block makes the chain invalid. However attackers have succeeded in altering the blockchain.

• To mitigate this, the Proof of work, Proof of Stake, and system of Consensus Management have been developed to secure the blockchain.

•Another factor that contributes to the security of blockchain is its distributed nature which allow P2P networking which backs up the Consensus in the chain by participants. Consensus can be viewed as an agreement by participants in a block chain on the standard of security of blocks in the chain.

•To successfully tamper with the chain , one has to redo the proof of work of each block and control over 50% of the P2P(peer to peer) network. Blocks that are tampered with be rejected. And a node facilitates the Consensus in the chain.

I hope you learnt something.

#blockchain #technology #bitcoin #data #security #blockchainsecurity #fintech #crypto #legal #cybersecurity

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BEIT stands for Blockchain, Entertainment, Intellectual Property and Technology. This blog focuses on providing contents in the aforementioned areas.

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BEIT stands for Blockchain, Entertainment, Intellectual Property and Technology. This blog focuses on providing contents in the aforementioned areas.

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