What is Blockchain?
Blockchain is a distributed database that enables transparent, secure and tamper-proof transactions. It is created by a network of computers that work together to validate and secure transactions. Blockchain has multiple applications and can be use for a variety of purposes, including payments, tracking assets and voting.
How is Blockchain Useful to Business?
Businesses can use blockchain to streamline processes and improve security. For example, blockchain can be used in tracking systems of global supply chain to ensure that products are safe and counterfeit-free. Blockchain can also be used to create digital identities for customers and employees. This can help businesses keep track of customer data and comply with regulations. In addition, blockchain can be used to create smart contracts, which are self-executing contracts that automatically execute when certain conditions are met. This can help businesses reduce costs and speed up transactions.
Is Bockchain secure?
Blockchain technology achieves decentralized security and trust in several ways. To begin with, new blocks are always stored linearly and chronologically. That is, they are always added to the “end” of the blockchain. Once a block is added to the end of the blockchain, it is extremely difficult to go back and change the contents of the block, unless most networks reach a consensus to do so. This is because each block has its own hash as well as the hash of the block along with the timestamp mentioned earlier. Hash codes are created by a mathematical function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well.
Suppose a hacker, who also runs a node on a blockchain network, wants to alter one blockchain and steal cryptocurrency from everyone else. If they replace their single copy, it will no longer align with everyone else’s copy. When everyone cross-references their copies against each other, they will see that this one copy stands out, and the hacker’s version of the series will be removed as illegitimate.
To be successful with such a hack, it would be necessary for the hacker to simultaneously control and alter 51% or more copies of the blockchain so that their new copy becomes the majority copy and, thus, on the agreed-upon chain. Such an attack would also require a lot of money and resources, as they would need to redo all the blocks as they would now have different timestamps and hash codes.
The cost of offsetting such a feat would probably be impossible, given the size of most cryptocurrency networks and how fast they are growing. This would not only be extremely expensive but also be potentially fruitless. Doing so will go unnoticed, as the members of the network will see such massive changes in the blockchain. Members of the network will then work hard for a new version of the series that hasn’t been affected. This will cause the hacked version of the token to drop in value, making the attack pointless, as the bad actor would have control of a worthless asset. The same will happen if bad actors attack a new fork of bitcoin. It is designed in such a way that there is more financial incentive than attacking the network.
The Future of Blockchain in Business
The future of blockchain in business is promising. Numerous businesses across the globe are adopting blockchain technology to improve their efficiency and security. As the technology continues to evolve, we can expect even more innovative applications of blockchain in business.