Features of using Blockchain technology on the example of Bitcoin (Topic)

Today, the issue of protecting information from unauthorized access by third parties is very acute. The global network is developing very rapidly and the number of fraud cases is growing exponentially, which requires new and effective solutions in the field of protecting electronic information.

Blockchain technology comes to the rescue, which has found wide application in the functioning of the Bitcoin cryptocurrency and has shown its effectiveness over the years.

Is Blockchain Safe?

Blockchain technology allows to achieve a high indicator of reliability and security of electronic information through the use of hashing of a tree structure "bottom - up". This approach allows you to protect data from unauthorized access, since changing at least one parameter of this structure causes a mismatch in the hash of the structure above, since they are "tied" to each other.

All of the above is confirmed by the application of this technology and its adaptation to the Bitcoin cryptocurrency. The most structural unit in Bitcoin is a block, which is a specific register of transactions performed on the network.

The sequence of blocks forms the history of transactions for the entire period and allows you to track the movement of funds from the very beginning. The block stores transactions, which, in turn, store the addresses of the wallets from which the coins are debited, and the addresses of the wallets where these coins will be credited. Therefore, it is possible to form a clear hierarchical structure "top-down": block - transaction - address.

How security is maintained

Now the main question is how data security is ensured from the influence of third parties on the network. A bottom-up hash chain is used to ensure data integrity. The transaction hash is affected by the sequence of addresses, coins and the size of the transaction in bytes.

At this stage, if at least one parameter of a transaction from a third party changes, this will cause a change in the overall hash of the transaction. Since transactions are placed in a higher structural unit called a block, their hashes affect the overall hash of the block.

In addition, the total hash of the block is affected by the hash of the previous block, the difficulty indicator, which is calculated by the miner to solve the problem (the hash of the block must have, for example, 15 zeros at the beginning), the block size in bytes.

Thus, the network monitors the correctness of the blocks by calculating the structure hashes from the bottom up and comparing them with the hashes present in the structure. If a change is detected, the network rejects such a block and considers it incorrect.

So, it has been established that Blockchain technology is an effective means of ensuring the integrity of electronic information, which is confirmed by the successful use of Bitcoin in the cryptocurrency for many years.

The governments of many countries consider this information security technology promising and invest in its development and adaptation to various areas of technological processes. This shows that this technology has prospects for development and application in the future.

The Topic of Article: Features of using Blockchain technology on the example of Bitcoin.
Author: Jake Pinkman