This technology generates a data structure with very reliable security features, focusing on cryptographic programming, decentralization, and approval, ensuring fidelity in transactions at Bitcoin payments.
All BLOCKCHAIN or distributed accounting technologies organize data in blocks. Each block has a transaction or a package of transactions.
These blocks are connected to all the previous blocks using a cryptographic chain; this makes it almost impossible to control them. In addition, all transactions within the blocks are authenticated and agreed upon through a consensus mechanism, allowing each transaction to be 100% accurate.
The Blockchain allows decentralization through the participation of the members in a distributed network. There is no room for errors in this application, and not a single user will be able to modify the record and storage of transactions.
Now, blockchain technologies lag behind some specific security features.
Types of blockchain security
Blockchain networks can differentiate based on who interacts and who has permission to access data. Networks are demarcated as public or private, indicating who is allowed to interact, with permission or not; this shows how participants gain access to the network.
Public blockchain networks naturally make it possible for anyone to join and for members to remain anonymous. The public Blockchain uses computers connected to the Internet to verify transactions and obtain approval.
BITCOIN is undoubtedly the best-known example of public Blockchain and gains acceptance by mining it. Computers belonging to the bitcoin network, or miners, attempt to solve a complex cryptographic problem to generate proof of work to verify the transaction.
Unlike public keys, there are few identities and access verifiers on these networks.
Private networks use identity in the verification and control of membership and access benefits. However, they only allow recognized organizations to integrate, making up a private commercial network and only for members.
A private blockchain that is part of a permissioned network is believed to gain consensus through selective endorsement, in which identified users validate transactions.
Only members who have been given access and special permissions can keep the transaction ledger. It is a type of network that needs a lot of security to access and handle information.
When developing a blockchain application, it is necessary to analyze the type of network that improves business scopes.
These types of private and permissioned networks can be monitored rigorously; these networks are preferred for compliance, security, and regulation advantages, while public and permission less networks can achieve greater decentralization and distribution.
The technological scope of Blockchain
Aspects such as the difficulty, the speed of development, the rigor of a diverse number of different platforms, or their high business potential make it challenging to solve technological challenges of great importance such as scalability, standardization, or interoperability, aspects that are very important in terms of security.
Scalability anxiety is fueled by the exponential development of mainstream public platforms such as Bitcoin, which grew 450% from July 2012 to July 2016.
To the extent that the network increases, competition for verifications grows, taking much longer and increasing the value per transaction, making it necessary to use new consensus mechanisms that reduce processing time without putting the security of the transaction at risk.
The interoperability framework focuses on providing solutions that arise out of proportion and the need to send data between platforms or to use standard electronic wallets.
This data exchange necessitates the translation between the protocols and the arrangement of the different consensus mechanisms, which are affected by the total lack of standards.
In one way or another, technological advances have diversified finances, and the way of operating with them, which for many is a point in favor of others, may seem a bit complicated to understand.
The refusal to change to which the human being is accustomed must be a paradigm eliminated from new investments since the basis of income in the future will be digital.
Blockchain technology is a very distinct security network that has managed to position bitcoin and Ethereum at the top of the cryptographic markets; these cryptocurrencies are encoded in blockchains, which provide decentralization and agility when carrying out transactions in is very safe way.
In these blockchain, the aspect of security is the most prominent and makes its implementation reliable. As a result, most crypto users prefer to invest in coins based on that technology.