Is Blockchain Secure?
The security of personal
data, especially that which is stored online, is a human right. It has failed
to evolve and actually been deteriorating in recent years. Blockchain technology has the
potential to entirely change this.
All
of our data is stored online. We concede some of our most private information
to the platforms that we use on a daily basis and we are often unaware which of
our personal data is collected. Many users still conceal some of their most
valuable data behind the shockingly weak combination of a username and
password, with over half of users openly admitting they use the same password
for all of their logins.
Is Blockchain Secure?
Yes, blockchain is
innately secure. It utilises powerful cryptography to give individuals
ownership of an address and the cryptoassets associated with it,
through a combination of public and private keys, made up of combinations of
random numbers and letter. This solves the issue of stolen identity as
addresses are not directly associated with users’ identity, whilst also being
far harder to compromise. Private keys are even more secure as they are
considerably longer. It is in this way that blockchain offers a greater level
of security to the individual user as it removes the need for weak and easily
compromised passwords and online identities.
Is a Private Blockchain
More Secure than a Public One?
The practise of building a
private blockchain to preserve security is a severely misguided one. It is true
that a private blockchain allows for the screening of participants, whereas a
public blockchain is essentially accessible to everyone. However, it is this
exposure that allows a public blockchain to develop immunity to hacks. For
example, Bitcoin is the original public blockchain, having withstood
years of relentless hacking without ever being compromised, getting more
resilient with every hack that it withstands. This epitomises that public
blockchains, much like Lisk’s, are considerably superior than private
blockchains.
Can a Blockchain get
Hacked?
No, a blockchain itself
does not get hacked. The security of blockchain technology should not be
confused with news about hacks, such as those carried out on cryptocurrency exchanges. Similarly, to normal
hacks, the underlying vulnerability allowing for hacks on exchanges stem from
centralisation. Despite blockchain technology being decentralized, there are
still centralized aspects of it, such as cryptocurrency exchanges. This means
that hackers can attack a single point in the hope of gaining access. As such,
these hacks have given rise to calls for decentralized exchanges and it is only
a matter of time before these become the main platforms allowing people to
trade cryptocurrencies.
Such hacks epitomise how
important it is for every aspect of blockchain to be as decentralized as
possible, as distributed information and assets are definitely more secure.
The security of blockchain
has roots in the cryptography that it utilizes however it is the technology’s
decentralized nature that provides the foundations for its security. In fact,
it is this distribution and decentralization that has got most people excited
about the potential of blockchain technology.
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