Anyone examining the blockchain can see each transaction and its hash value. Someone using the blockchain can act under a pseudonym if they wish or give their identification to others. Everything you see on the blockchain is a record of transactions between wallet addresses. Once a transaction has been recorded on the blockchain and the blockchain has been updated, it is impossible to change the history of that transaction. Why?
This transaction record is linked to the history of every previous one, making it immutable. Blockchain records are persistent, chronologically ordered and available to all other nodes. It is almost impossible to turn off the network. Since numerous nodes operate globally, a single party cannot take over the entire network.
Forging a block is also nearly impossible since the validity of each block, and therefore its inclusion in the blockchain is determined by an electronic consensus of the nodes. There are thousands of these nodes scattered around the world. Therefore, seizing the network would need a computer with almost insurmountable power. Nevertheless, using blockchain technology as a standard database would be challenging. Like Microsoft Access, FileMaker or MySQL?
That would not be a good idea. Most blockchains aren’t inherently capable of doing this or don’t have the capabilities.
Traditionally, client-server networks have been used for online databases. As a result, people with access rights can alter the database records while administrators still maintain overall control. With a blockchain database, each user is responsible for maintaining, computing, and updating each new entry. Each node must work together to ensure that all come to the same conclusions. The architecture of blockchain technology also means that each node must work independently and compare the results of its work with the rest of the network, so reaching a consensus can take a long time.
For this reason, blockchain networks have historically been slow compared to traditional digital transaction technology. Advancements have enlarged blockchain-related transaction speeds in some cases, as seen in some crypto assets, projects, and solutions.
Nevertheless, there are experiments to create databases using blockchain technology. These platforms aim to take an enterprise-class distributed database and build on top of it while adding the three key blockchain attributes: decentralization, immutability, and the ability to be recorded. And transfer assets.
How secure is blockchain technology?
Although blockchain is not protected from hacking, its decentralized nature delivers a more robust security line. To change it, a hacker or criminal must control more than half of all the machines in a distributed ledger. And the most prominent blockchain networks, like Bitcoin and Ethereum (ETH), are open to anyone with a computer and an internet connection. In a blockchain network, more users don’t reduce security; they make it more secure. More people are checking one other’s work and reporting bad actors when there are more participating nodes.
This is one of the reasons why private blockchain networks that require an invitation to join unexpectedly be more vulnerable to hacking and tampering.
In addition, blockchain is beneficial in countering “double spend” attacks on payments and money transfers. Attacks on cryptocurrencies are a cause for concern. A user spends their crypto more than once in a double-spend attack. A problem that does not exist with cash. If you spend $3 on a cup of coffee, you won’t have $3 on anything else.
However, when it comes to cryptocurrency, there is a chance that a user may spend the cryptocurrency multiple times before the network notices. The blockchain can help with this. The entire network must agree to the transaction within a cryptocurrency’s blockchain. Stream, commit the last trade and post it publicly, which helps keep your network secure.
The future of blockchain technology
The potential of blockchain technology is virtually limitless, and recent advances have brought us closer to a trusted, decentralized internet, transaction transparency, and more. As we move away from the pandemic era and into the “new normal” generation, blockchain is likely to be at the forefront of our advances in addressing these new sociocultural issues and rethinking what wealth truly means in the age of digital money. Blockchain technology appears to have a promising future, and as it already shows potential in almost every area, the best seems to come. In the meantime, it will be exciting to see where blockchain technology goes in the future, especially in banking services, money transfers, decentralized markets and other areas.