Blockchain was a technology seen as an evolution but has emerged as a revolution. has been in the market for a decade but its existential feel can be observed in recent times. Blockchain holds a lot of potentials to solve modern-day to day problems which current technology fails to resolve. From transaction processing to management activities be it keeping a record of public and personal identity without the fear of getting breached, Blockchain can optimize most of our issues. Blockchain has a lot of benefits like immutability, user pseudonymity, cost-saving, security, and resilience. Blockchain does not allow to change any data from the block without the consent of all the other nodes.
To be trustworthy the technology should not only have out of the world or easy on the eye feature but also should have safe and sound security parameters too. And Blockchain passes with flying colors in this segment also. Blockchain security keeps in check as the right people, internal or external, get access to the appropriate data and information at the exact expected time and place, within the correct channel. Security prevents and safeguards against malicious attacks; it protects enterprise data assets by securing and encrypting data while it is in motion or at rest. It also enables organizations to separate roles and responsibilities, protecting sensitive data without compromising privileged user access.
Blockchain severely relies on cryptography for its data security purposes. The core concept behind it is the cryptographic-hashing function. Hashing is a process whereby an algorithm receives an input of data of any size and returns an output known as a hash that contains a predictable and fixed size (or length). The output will always be of fixed length, irrespective of the input size. Even so if the input changes, the output will be completely different. However, if the input doesn’t change, the resulting hash will always be the same – no matter how many times you run the hash function. These output values, known as hashes, are used as unique identifiers for data blocks within the Blockchain. The hash of each block is generated in relation to the hash of the previous block, and that is what creates a chain of linked blocks. The block hash is dependent on the data contained within that block, meaning that any change made to the data would need a change to the block hash. Hence, the hash of each block is generated based on both the data contained within that block and the hash of the previous block. These hash identifiers play a major role in ensuring blockchain immutability and security. Also to provide protection for transaction records on ledgers, cryptography also plays a role in ensuring the security of the wallets used to store units of cryptocurrency. The paired public and private keys that allow users to receive and send payments are created through the use of asymmetric or public-key cryptography. Private keys are used to generate digital signatures for transactions, making it possible to authenticate ownership of the blocks that are being sent.
The nature of asymmetric cryptography prevents anyone but the private key holder from accessing funds stored in a cryptocurrency wallet, thus keeping those funds safe until the owner decides to spend them (as long as the private key is not shared or compromised).
Blockchain works on some key principles which make it free from a security threat. They are as follow:
2. Securing applications
3. Securing testing and similar approaches
4. Database security
5. Continuity planning
6. Digital workforce training
As the applications of blockchain increase, the security system will also be updated in order to meet the need of various other users.