Introducing security in terms of blockchain

A few introductory questions everyone might have

Umm, remind me what’s blockchain?

Let’s say you are having a conversation with someone. Each of you are technically transferring information. Imagine transferring this information on small chunks/blocks.

Well you guessed it right:

Blockchain => chain of different blocks

Blocks can be anything to store information on. Imagine it as a special type of a box holding information. And yes, these are linked (ergo the “chain” part)!

Okay so how is this used in real life?

Blockchain can be used everywhere. It’s a new means of transferring information. Financial transactions is one of the hottest examples of how blockchain technology is used nowadays. This technology is used when transferring important financial information from one party to the other.

Security components of blockchain

Why is this technology used exactly for such critical applications? Of course because of its security!

Each block is stored in a different place (or node) around the internet which are randomly allocated. A blockchain transaction of information includes numerous blocks. So for someone to alter something, it needs access to all those nodes. Also, changes on a block need to be verified that are indeed valid.

Of course this is not the only component of blockchain security. Information can be shared from anyone. So how can you be sure that information was shared by the intended party or that the information was indeed valid? You use a unique, fixed-size string of characters that is generated using a mathematical algorithm that is used to alter and encrypt the data or in much simpler terms => a hash! A hash is just one-way. It is computationally infeasible to reverse the hash to obtain the original data.

Cryptography is a fundamental component of blockchain security. Blockchain utilizes cryptography to secure and verify transactions and data stored on the network. All information that exist in each block are encrypted and information can be read only by nodes that acquire a specific key. This key is more of a permission to view or modify information on each block. Thus this makes it very difficult for anyone to read or alter the information stored on the blockchain without permission.

The final component of blockchain’s security is regarding the “chain” part of blockchain.

The whole gist of blockchain is the fact that it cannot be controlled by a person or a group of people since it is a decentralized system. It does not rely on a central authority or single point of failure. Decentralisation exists on the fact that you cannot just change one block. You have to change the whole chain of blocks!

Also from a different point of view, if someone tries to tamper with the information on the blockchain, it will be very easy to detect and trace back to the source since the blocks are linked! Blockchain technology utilizes consensus protocols to ensure the integrity and security of the network. These protocols allow the network to reach a consensus on the valid state of the blockchain, and ensure that all nodes on the network are in agreement on the data stored on the blockchain. This makes it very difficult for an attacker to alter the data on the blockchain, as they would need to convince a significant number of nodes to accept their changes.

This is a general and introductory overview of what blockchain technology is and why is this used explaining in simple terms its main security components.

Thank you!