Cryptocurrencies are coded strings of data representing a unit of currency, and transactions concerning them are carried out with the help of blockchain technology. If you compare them to conventional currency transactions, you will find they are secure, faster, and cheaper. This is why they have gained a lot of prominence in the market, and more and more people are banking on them to execute day-to-day buying and selling.
Kavan Choksi-why is cryptocurrency a safe option?
Kavan Choksi is an esteemed expert in finance, and according to him, cryptocurrencies have several advantages making them extremely popular in the market today. They are decentralized and are not subject to inflation as a government or any one entity never controls them. Thanks to the above feature, it is difficult for hackers to break in and manipulate transactions, making fraud risks absolutely nil!
Blockchain technology and its role in cryptocurrency
It is the blockchain technology that makes cryptocurrency transactions so secure and confidential. It achieves security that is decentralized in nature and so it can be trusted in multiple ways. The new blocks of information sets are stored chronologically in the blockchain, and new partnerships are constantly added to the chain’s end. After this new block has been added to the last block of the chain, one can’t go back and change the content inside the league unless the network’s majority consents. And for all this, you have to rely on the experts. The professionals have the desired knowledge to do the needful.
The power of the hash code and how does it work on blockchain technology?
This hash code is made with the help of a mathematical function that transforms the digital information into a string of letters and numbers. If this data is edited in any manner, the hash code also gets changed in the process! This is because every block has a unique hash with the previous block’s soup with the exact timestamp.
Take the example of a hacker operating a blockchain node to change it to steal cryptocurrency from all users. If these users want to change their block, it no longer aligns with the copy of others on the chain. This means when everyone cross-checks their block copies with each other; they discover one of them is different enough to make it stand out from the rest in the chain, and this hacker’s version of the block will be cast out from the chain as an illegitimate block.
Business expert Kavan Choksi further states that if a hacker has to succeed with the theft, he would need to alter and later control 51% or even more of the above blockchain copies so that this new copy becomes its majority copy. The others follow suit to join the chain. Conducting such attacks entails a lot of resources and money as the hacker has to tamper with all of the blocks on the chain, which will surface with different hash codes and timestamps. If the hacker has in-depth knowledge, he won’t take much time to do the damage.