Blockchain is one those technologies that have achieved exponential growth in the last few years. Along with gaining exponential growth, industries are leveraging blockchain technology for their progress. One of the reasons why blockchain is famous is because it has offered the world the ease of making secure financial transactions quickly, yet securely. Security is a major reason behind blockchain gaining fame across the world. Blockchain uses cryptographic keys to ensure secure transactions.

How does Blockchain secure information?

Blockchain technology consists of distributed ledgers that can be viewed by anyone and everyone present on the network. By having distributed ledgers storing information, we mean that all the systems on the blockchain network hold a copy of these ledgers. Security in blockchain’s distributed ledgers is often considered to be the backbone feature of this technology. As all the systems hold a copy of these ledgers, penetrating into a system becomes extremely difficult for the hacker. Even if a hacker succeeds in hacking all the systems on a blockchain network, if an altered block is submitted on the chain, the hash or the keys get changed.

The hashed or the private key is a feature that is being used to ensure the security of the information stored on the blocks. Whenever a person wants to make a financial, she exchanges a public key, which is then linked with the private key of the receiver, and the funds are transferred.

Does Blockchain face a threat?

As the saying goes “Nothing is impossible,” the possibility of blockchain being hackable and the threat of a possible attack on blockchain ledgers is probable. As humans have created blockchain, the possibility of blockchain being hackable cannot be sidelined. Here are two ways in which blockchain networks can be falsified:

1.    Private Key theft

A blockchain ledger can be extremely difficult to hack, but there are certainly other ways that a hacker can use to break through to the system. Stealing private key can be one of them. When a hacker gets hold of someone’s private key on the blockchain network, collecting all the financial resources becomes extremely easy for the hacker.

2.    Weak code

When a blockchain code that is being executed is weak or not standardized enough, hacking the entire network becomes extremely easier for the hackers. Developing a strong underwriting code for blockchain becomes important for the developers, as the stronger the code, the more robust the block becomes.

All of this being said and done, hacking an entire blockchain is an extremely difficult task. We can certainly conclude that even though blockchain is not 100% foolproof, it provides us with security functionalities that were previously unavailable.