Data Security With Blockchain

Data Security With Blockchain

What is a Blockchain?

A blockchain is a distributed ledger made up of a chain of blocks that are used for the purpose of secure transactions. These transactions can be for money, contracts, or ownership. Blockchains are made up of a series of blocks which is where the information and data is stored. The information that is on each block is dependent on which type of blockchain you are on. Information on a block could be the block height, timestamp, transaction history, and miner name.

Each block in a blockchain is linked to the one before it with a hash tied to it. A harsh is a unique identifier of every block which contains that block's data. Hashes cannot be changed, therefore, if any data is changed within the block, a new hash will be created. 

Since every block shows the current and previous hash, if someone were to change a block, they would need to update every hash after the block they edited. With modern technology, updating these hashes could be completed within minutes, eliminating the hassle and allowing easy alteration of data.

To resolve this issue, cryptocurrencies utilize consensus methods, allowing systems to decide which transactions are legitimate. Two consensus methods of fixing this security issue are:

Proof of Work (PoW)

The main difference between proof of work and proof of stake, is that proof of work utilizes miners to validate these transactions. In order to validate transactions and create new blocks in a blockchain, PoW utilizes miners to solve a complex math problem. Once solved, the miner is rewarded with cryptocurrency and is allowed to update the blockchain with the validated transactions. 

Proof of Stake (PoS)

Utilizing miners for validation requires a massive amount of processing power and is incredibly energy-intensive, which can lead to troubles with scaling. In order to resolve this, proof of stake was developed. In PoS, a group of “validators” are employed who “stake” their own cryptocurrencies (normally a high amount of crypto) to validate the blockchain. Once the validation is complete, other “validators” can attest that the validation is correct, and after there is determined enough validations, the blockchain is updated. Any validator who took part in the validation is rewarded with cryptocurrency.

As the world of blockchain becomes more mainstream, storing data within the blockchain will be the  secure and efficient decision. 

Aptimized will lead in providing your organization with the right blockchain solution, allowing your business to be pioneers in this new world.

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