Why Blockchain Cannot Be Hacked

April 18th, 2018

In today’s market, it is tough to find a tech blog or watch the news, without stories about blockchain technology. One of the main reasons behind Blockchain popularity is the recent price increase of Bitcoin, making the underlying technology globally popular. Businesses and other reputed companies around the globe are coming out of the woodwork to start using blockchain technology.

Blockchain technology is now positioned in such a way that it will impact the world. Many reviews and researchers are suggesting that blockchain technology has the potential to create a new basis for social and economic systems. In a recent Economic Forum report, it was predicted that by the year 2025, around 10% of global GDP will revolve around blockchain technology. This is definitely good news for this technology that comes equipped with amazing features and possibilities. If you are still unaware of this technology, it’s time that you start learning about it.

The interest for blockchain technology is increasing, businesses around the world are showing interest in this new digital concept. Experts find this new technology tough to hack-making it ideal for many institutes and fields. In the last few years, there have been few cases of security breaches, which has increased concerns among many Blockchain enthusiasts. But these were attacks on blockchain based tools- it has nothing to do with the risks associated with blockchain technology. The problem is due to poor implementation of blockchain technology by the particular organization. Blockchain technology is based on a powerful system that has been proven almost impossible hack. This is one of the main reasons that major businesses around the world are interested in implementing it into their business models.

Stealing Private Keys

Every participant in a blockchain network is assigned a private key that is used to make transactions with, from your account. Once the transaction is complete, users within the network will verify the transaction using public keys. Every user needs to keep private keys secure, if by chance it gets stolen all your digital assets can be transferred to a different account.

Obtaining Network Power

In blockchain technology networks such as Bitcoin, if half of the participants approve any transaction it is considered to be genuine. With this method there are some challenges. If half the participants agree to approve any transaction, it will go through a genuine process. In the same way, if any participant hacks a machine and drives more than half blockchain technology network computing power to his machine, approving fraudulent transactions becomes easy.

Software Vulnerability

There may be errors with the software that can compromise the security of the blockchain technology platform. Such errors may occur during implementation of any feature, but remember it has nothing to do with blockchain technology itself.

Overall, blockchain technology is a simple, strong and effective concept that will allow businesses to expand. Blockchain technology is based on effective security principles that are hard to hack. One key component to this technology’s maturity is the discovery of any attempts to hack, potential defects and the robustness of the technology. Blockchain technology is an ever-evolving technology-law enforcement groups will need to have more guidelines and better skills to investigate and prosecute all kind of security breaches. However, this shouldn’t deter developers and firms to adopt the technology once they realize its benefits.

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