Block Chains: Potential and security
A blockchain is a digital ledger that is used to record various transitions across multiple different computers or nodes. It is one of the safest and most efficient ways to ensure that data is secure and cannot be changed.
Think of a digital ledger as an online notebook, like Apple Notes, where transactions and data are recorded. These transactions are grouped into "blocks," which are linked together in chronological order, forming a continuous "chain" of blocks. Instead of being stored in a single location, identical copies of this notebook are stored on multiple computers around the world. Each transaction is verified by these computers before being added to the blockchain, ensuring accuracy and security.
Why is it so Secure?
The most secure way to safeguard data and transactions is to ensure that no single entity controls the blockchain. To enter information, a majority of computers in the network must agree on it for validation. Because identical copies of the blockchain exist on different computers, altering the blockchain would require simultaneously hacking more than 50% of these nodes—a "51% attack." Such an attack is generally extremely difficult and costly, especially on well-established networks, which is why most attacks target smaller, less secure networks.
To further protect transactions or information, each block contains a cryptographic hash of the previous block, creating the “chain.” This means that altering any information within a block would change its hash, breaking the chain and making tampering easy to detect. Since every block is linked, changing the blockchain would require altering every block in the chain. The decentralized nature of the network also ensures that many participants are monitoring it, making it more likely that anomalies or attacks are quickly noticed and countered by the community.
Uses
The most well-known use of blockchain is in cryptocurrencies like Bitcoin and Ethereum, which utilize blockchain technology to record and verify transactions. Whenever you buy, sell, or transfer cryptocurrencies, those transactions are securely documented on a blockchain. Beyond cryptocurrencies, blockchain can also be applied to record real estate transactions, ensuring clear and secure ownership records. This reduces fraud and simplifies the process of buying and selling property. Additionally, blockchain can even be used to securely store healthcare records, ensuring that patient information is accessible only to authorized parties and cannot be altered, thereby improving security and privacy.
However, the most significant potential for blockchain lies in transforming the voting system. With the upcoming election and voter turnout in the U.S. still lagging behind other democracies—falling 3 percent short of the average 65% voter turnout—blockchain could address several issues, such as candidate dissatisfaction and voting accessibility. A blockchain-based voting system would offer pinpoint accuracy, significantly reduce the likelihood of fraud, increase accessibility, and ultimately boost voter turnout, making the process far more reliable than traditional methods.
Challenges
One of the biggest criticisms of blockchain technology, particularly in Proof of Work systems like Bitcoin, is the exorbitant amounts of energy required for mining. PoW involves miners (verifiers) competing to solve complex mathematical puzzles to validate transactions and add new blocks to the blockchain. This process demands high computational power, leading to the use of extensive energy resources. As a result, the environmental impact of Bitcoin mining has become a serious concern, with some estimates suggesting that the network’s energy consumption can rival that of some entire countries.
-How Does Blockchain Voting Work? A Complete Guide | Built In
-Blockchain Facts: What Is It, How It Works, and How It Can Be Used (investopedia.com)
51% Attacks — MIT Digital Currency Initiative
-Why These Bitcoin Miners Are Becoming Summer’s Hot AI Stocks (forbes.com)