Security

What makes a blockchain transaction so secure?

Security is perhaps the most important factor when investing in cryptocurrency for the first time. While transactions are generally safe from hackers, storing cryptocurrency is where most fall victim to theft. There are many ways in which a cryptocurrency holder can sure up their assets and keep safely stored away from prying hackers.

The blockchain network is designed so a cryptocurrency transaction functions differently to a traditional fiat currency transaction.

Instead of a single bank taking days to check to see if there are funds available to transfer, a network of miners stationed at nodes all work together to do the same job.
This public network nodes all individually do the same job as a bank – checking for funds, making sure the cryptocurrency has not already been spent etc.

However, the miners working from these nodes are all competing against each other to complete the job correctly in the shortest possible time to complete a block to be added to the chain, and to earn a cryptocurrency award.

They do this by attempting to build a hash, which is simply an inbuilt unique code called making it unique from every other block. Hash codes in cryptocurrency blockchains are security measures created by a mathematical algorithm specific to the cryptocurrency, functioning to turn digital information into a string of numbers and letters. This long list of numbers and letters identifies every single transaction ever made on the cryptocurrency blockchain network to which it belongs, all the way back to its first ever transaction, located within the genesis block.

Blockchains: Security
This record is vital in a blockchain’s ability to make sure cryptocurrency is not spent more twice or fraudulently gained.

Why is it so difficult to alter hash codes?

Once a new block is added to the blockchain, it becomes publicly available for anyone to view. Its contents become very difficult to alter because of these hash codes. If a hacker attempts to edit your transaction’s information in any way, the hash code would change as well.

The next block in the chain will still contain the original hash, so the hacker would also have to update the next block too. In order to change a single block, a hacker would need to change every single block after it on the blockchain.

In other words, the chain’s information duplication function means that when a block is added to the blockchain it becomes very difficult to edit, relying on huge amounts of computing power to complete the multiplying complex problems.

Many believe cryptocurrency is the way of the future regarding secure and safe financial transactions. Its water-tight hash system, combined with other elements of blockchain technology, including a publicly-viewable ledger and system of verification functioning without the reliance of trust, means the system is almost impossible to manipulate.

Any hacks or breaches are almost always as a fault of the user's callousness, laziness or plain negligence, not the system itself.

hash codeshash codesHashes are an important and very powerful tool providing the key making blockchain security arguably as resolute as any other current transfer system.

FAQ

Is security important?
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Security is perhaps the most important factor when investing in cryptocurrency for the first time. While transactions are generally safe from hackers, storing cryptocurrency is where most fall victim to theft. There are many ways in which a cryptocurrency holder can sure up their assets and keep safely stored away from prying hackers.

What makes cryptocurrency more secure?
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Hash codes in cryptocurrency blockchains are security measures created by a mathematical algorithm specific to the cryptocurrency, functioning to turn digital information into a string of numbers and letters. This long list of numbers and letters identifies every single transaction ever made on a blockchain network. This record is vital in a blockchain’s ability to make sure cryptocurrency is not spent more twice or fraudulently gained.

Is cryptocurrency safe to use?
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Many believe cryptocurrency is the way of the future regarding secure and safe financial transactions. Its water-tight hash system, combined with other elements of blockchain technology, including a publicly-viewable ledger and system of verification functioning without the reliance of trust, means the system is almost impossible to manipulate.

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