Security of blockchain
The proponents of this ledger technology consider it to be one of the best ways to secure transactions. The question is; how does blockchain provide more security than the traditional processes? Now let's have a look. A blockchain is a chain of ‘blocks’ that contain records of the transaction. Each block is connected to the other blocks before and after it. This makes it difficult to interfere with a single record because the hackers would need to change the block containing the record and other blocks linked to it to avoid being detected. The network participants have their own private keys that are given to the transactions they make and act as personal digital signature. Once a record is altered, the signature becomes invalid, the back-end team will know right away that something has happened. Early notification is crucial to prevent further damage.
Blockchain is decentralized. Instead of people uploading data to a cloud server or storing it in a single location, the blockchain breaks everything into small chunks and distributes them across the entire network of computers. Its a digital ledger of transactions that lacks a central control point. Each computer has a complete copy of the ledger if any node going down will not result in any data loss. Blockchain effectively cuts out the middle-man, there is no need to engage a third party to process transaction. You don't have to trust in a vendor when you can rely on a decentralized, immutable ledger.
Blockchains also offer encryption and validation in that everything that occurs on the blockchain is encrypted and it is possible to prove that data has not been altered. Because of its distributed nature, you can check the files signatures across all the ledgers on all the nodes in the network and verify that they haven’t been changed at all. Therefore nobody can deny that blockchain offers reliable, independent data verification. Blockchain technology is a relatively new technology, so we don't have all the answers yet, but blockchain clearly has the potential to have a big impact on the data security world. From Trendpro Systems Ltd