Blockchain Security, How can You Ensure it?
You’ve probably already overheard about blockchain technology and how it is taking over but what you haven’t heard enough of are the consensus mechanisms, network security, and potential vulnerabilities around it. In this article, I’ll share with you what these concepts mean and give you tips on how to stay secure while using the blockchain.
Already established is the fact that a blockchain is a digital ledger or record book. It’s made up of blocks, where each block contains a list of transactions. These blocks are linked together in a chain, hence the name “blockchain.”
Where then does the consensus mechanism, and network security fit? From their names, you can already infer that it has to do with the security of the blockchain, its users and the transactions involved.
Consensus Mechanisms:
Consensus mechanisms are like the rules that everyone follows to agree on what’s in the ledger. Blockchains need a way to agree on the transactions that go into each block. Examples of Consensus Mechanisms are Proof of Work and Proof of stake:
Proof of Work (PoW): In PoW, participants (called miners) solve complex math puzzles to validate transactions.
• It’s energy-intensive like a race to solve a puzzle, and the first to solve it adds a new block. For example, Bitcoin uses PoW.
Proof of Stake (PoS): In PoS, validators are chosen to create blocks based on the number of coins they “stake” as collateral. It’s like a lottery where having more coins increases your chances of being chosen.
Network Security:
Blockchain is secure because once a block is added, it’s challenging to change. All participants validate transactions, making fraud harder.
Despite the security measures that exist within every blockchain, there are potential vulnerabilities:
• If one party controls over 50% of the network’s computing power, they could manipulate transactions.
To solve this, there, is a high need for stronger decentralization.
•There is equally the risk of double spending, which occurs when someone spends the same cryptocurrency twice. Confirming transactions through consensus mechanisms helps prevent this.
• We are dealing with computer programs and machines that can encounter bugs called Smart Contract Bugs. With the vulnerability involved, the blockchain stands the risk of being exploited.
It is thus, important to consider auditing and testing smart contracts thoroughly.
•Also, some blockchains may not provide complete anonymity. This is why Privacy-focused blockchains or solutions like zero-knowledge proofs should be developed more!
In maintaining a balance with its technology and providing security, blockchain ensures that consensus mechanisms are provided for every blockchain thus, creating a secured network for its transactions and users.
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