The what, why, and how of ‘blockchain’ technology

So What Is A Blockchain?

Why is it necessary now?

  • Increased Digital Processing Power
  • Rapid Growth In Cybercrimes
  • Rise Of Bitcoin And Cryptocurrency

How does it work?

  • A Cryptographic Hash
  • Unchangeable Digital Ledger
  • Nodes
  • Consensus Protocol
  • Mining Or Block Validation

Challenges

  • Blockchain is not easy to implement and some of the concepts are still new and evolving.
  • Although blockchain technology is secure, security issues might occur in case of a 51 percent attack. According to Satoshi Nakamoto, a 51 % attack is when an individual or a group has more than 50% of the mining power. This prevents other miners from creating blocks or transactions.
  • Setting up the initial blockchain infrastructure can prove to be expensive. Therefore, it is not a very cost-efficient technology as of now.
  • Performance is a major concern in blockchain technology. Every transaction is distributed in the network and requires the approval of each node. This may require more time.

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24| Cyber security enthusiast| I write about everything from cyber security to short stories.

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Harshni

Harshni

24| Cyber security enthusiast| I write about everything from cyber security to short stories.

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