The emergence of blockchain is attributed to its ability to securely store data, execute transactions and perform complex operations without the interference of third-party entities. Blockchain technology has been widely recognized and adopted by numerous organizations in diverse industries due to its highly sophisticated security features and qualities. It follows the principles of decentralization, cryptography, and consensus to create an open and trustworthy environment for transactions to take place.
In blockchain, data is organized into a chain of digital blocks that contain transaction records. Each of these blocks connects to all the other blocks before and after it in a cryptographic chain that makes it extremely difficult for hackers to breach the network. Network participants are assigned private keys that are identified with every transaction that occurs on blockchain. If any suspicious activity is realized on the network, the private keys become invalid and the system will be well aware of the activity. All transactions that occur within the blocks are authenticated and verified via a consensus mechanism that ensures the validity of transactions before completing the proposed tasks.
Blockchain provides a decentralized and distributed peer-to-peer network that guarantees participants of no single point of failure. The decentralized structure of blockchain ensures that there is no single point of failure, meaning that for a hacker to breach a blockchain network they will have to access every instance of the chain and make changes to alter their data simultaneously which is extremely difficult. Blockchain provides more security to a larger peer-to-peer network. Meaning that the larger the blockchain network is, the more secure it will be.
Security differences across blockchain types
Access to blockchain networks can be dependent on the type of security the blockchain offers. So It is imperative to consider the security and permission details of a particular blockchain network before opting for it.
Public blockchain network
A public blockchain grants access to anyone willing to join the network and can ensure that participant’s identities are kept anonymous. This kind of network uses a broad range of computer systems connected to the public internet to validate transactions and distribute them to the ledger. The validation of blockchain transactions before storing them in records is known as consensus. A typical example of a public blockchain is the popular Bitcoin cryptocurrency. It achieves its consensus through a digital process of mining, commonly known as “bitcoin mining” which is a process of digitally adding transaction records to the public blockchain.
Private blockchain network
Private blockchains only permit access to their network via confirmation and recognition. It only permits known organizations to engage in the blockchain network. It is an exclusive network that forms the basis of a members-only business network. The private blockchain network achieves its consensus through a process known as “selective endorsement”, where only known participants validate transactions.
Earn free rewards with zero risks
Put your betting skills to test with Fanspel– the first Blockchain-based fantasy sports platform. Join the Fanspel community and Stake your way to the very top!
Blockchain offers an innovative approach to securely storing and executing data without assistance from a third-party. However, it is important to know the best type of blockchain network that suits your business goals when developing a blockchain application.
