Every year, huge amounts of money from electronic accounts are stolen by scammers and cybercriminals. But we always forget to consider cybersecurity risks from corrupt officials. The global economy needs a reliable environment to fully overcome this problem. For such purposes, blockchain technology can be used. Let's see how exactly.
This is one of the key features of the blockchain. But why can't this technology be damaged? It works differently than a typical banking system and provides blockchain functions through several nodes. Each node in the system has a copy of the digital ledger. To add a transaction, each node must verify its validity. If the majority considers ee valid, it is added to the ledger. This promotes transparency and makes it protected from damage.
Without the consent of most nodes, no one can add transaction blocks to the ledger. After adding transaction blocks to the ledger, no one can simply go back and edit, delete or update it.
If enterprises begin to integrate blockchain technology to support their internal network system, no one can hack it, change, or even steal information.
Public blockchains are a great example of this. Everyone can see the transaction, so it is super transparent. On the other hand, private or federal blockchain may be best suited for enterprises that want to remain transparent among employees and protect their confidential information from other people.
Blockchain puts us in an understandable position. The system does not require governing bodies and we can get direct access to it from the Internet and store our assets in it. Starting from cryptocurrencies, important documents, contracts or other valuable digital assets. And with the help of the blockchain, you will have direct control over them using your private key.
Since decentralization is one of the key features of blockchain technology, it can withstand any malicious activity. Attacking a system is more expensive for hackers, and is not a technically simple solution. The likelihood of damage and malfunctioning in this technology is minimized. Since the system runs on algorithms, people have no chance to deceive you.
Together with decentralization, cryptography provides users with yet another layer of protection. Cryptography is a rather complex mathematical algorithm that acts as a firewall against attacks. All information about the blockchain is cryptographically hashed. For this process, any input is obtained using a mathematical algorithm that produces values of a different type, but the length is always fixed. All blocks in the ledger have their unique hash and contain the hash of the previous block. Changing or attempting to fake data will mean changing all hash identifiers. It's almost impossible. You get a private key for accessing data and a public key for transactions.
No one can take a public key and come up with a private key. If someone wants to ruin the network, he will have to change all the data stored on each node of the network. There may be millions and millions of people where everyone has the same copy of the ledger. Access to and hacking into millions of computers is almost impossible and very expensive. This is why this is one of the key features of blockchain technology. Since it is too difficult to get around, you don’t have to worry about hackers taking all your digital assets from you.
Usually, the public ledger provides all the information about the transaction and the participant. Everything is open, and there is no place to hide. As for the private or federal blockchain, everything is a little different. Nevertheless, in these cases, many people can see what is happening in the ledger. This is because other users in the system support the ledger on the network. This distributes computing power between computers to provide the best result.
Nodes act as verifiers of the ledger. If the user wants to add a new block, the other must verify the transaction and then give a green signal. This provides the user with fair participation. No additional benefits. No one on the network can receive any special privileges. Everyone should go through the usual channels and then add their blocks. To ensure the functioning of the blockchain functions, each active node must provide a ledger and participate in the verification.
Each blockchain has a consensus to help the network make decisions. The consensus is responsible for the credibility of the network. Nodes may not trust each other, but they may trust the algorithms that work at its core. That's why every solution over the network is a winning scenario for the blockchain. This is one of the benefits of blockchain features. There are many different consensus algorithms for blockchain around the world. Each has its unique way of making decisions and correcting earlier mistakes. This architecture creates a realm of justice on the web.
Traditional banking systems are rather slow. It may sometimes take several days to process a transaction. And faking them is pretty easy. Blockchain offers a faster settlement. And the system of smart contracts allows you to quickly make settlements for any type of contract. This is one of the best advantages of the blockchain today and its role in the fight against corruption is the most important today. It also affects international trade.