Although this technology has only 10 years of use, one thing is for sure, many people are still suspicious and wonder if the blockchain is safe, even though it has come into the world with the potential to revolutionize all the processes we know today. Proof of this is that segment forums guarantee that by the year 2025, 10% of the world’s GDP will be stored in the blockchain. To be an idea of this amount, currently the value of bitcoin in the blockchain is about $ 20 billion, which represents about 0.025% of global GDP of about $ 80 trillion.
So if you want to understand all about this technology and find out if Blockchain is really safe, it’s in the right place! But we need to start at the beginning, ok? For that you need to know about the Blockchain Definition.
What is Blockchain really?
Despite its complicated name, blockchain is nothing more than the encryption technology initially created for trading bitcoin virtual currency. Its structure acts as a powerful and reliable mechanism for storing information.
Although the system was originally intended for bitcoin, the security provided by encryption has sparked the interest of many other segments, such as digital banks and online brokerages, which today discuss or even use blockchain as a powerful control tool. management.
Wait, but how does this work in practice?
- The key information we need to know to understand how blockchain works is that it is a technology designed to be decentralized, meaning there is no unique power to control transactions.
- In practice, let’s use bitcoins as an example. We assume that you make a transaction to send bitcoins to a friend. When performing this operation, several computers connected to this network validate this transaction and verify that you can actually use this value or if it has been used before.
- The transaction is effected only upon general consensus and validation of this computer network.
- Once the information is effective, this transaction is recorded in a block with thousands of other transactions that follow this same pattern.
- This log also generates copies that are saved on the computers of everyone involved in this network.
- All of these copies make the information publicly recorded as well. This facilitates the proof of a transaction, as to consult it just search the registry on the network.
What really makes blockchain safe?
Simple! Do you know this unique number formed by the block information store? It’s called a hash. We can imagine a hash as a fingerprint, it is always unique! One of blockchain’s great intelligences is that each block will have its own hash plus the hash of the previous block.
So changing any information after logging data into a block will change the hash. And that means that once the information has been recorded it cannot be modified. Any attempt to change will generate a new hash, but the old one will also remain archived.
Another point is also very important for the blockchain security issue: remember that in the topic above we said that each blockchain network groups participants with the same interests? We cite the case of bitcoin, where the interest is to transfer money, right?
This network is known as “nodes”, which is the group that promotes transaction validation through a consensus mechanism. So when someone can validate the information in a block, thousands of other people on the network also confirm that the validation result is correct and that information is saved on all computers involved in this chain.