We live in a time where banking, health and even the curtains of our homes are operated via our hand-held devices. This accomplishment of mankind was not an overnight matter, rather it took years to reach perfection. After all these years, we have realized that our dependence on technology has increased and we find ourselves sharing more data, online. This data can be of many sorts: our personal information, financial records, behavioral patterns, preference in food, our playlist, anything.
Many people fail to realize that all the data they’re saving out on the web, although seemingly secure, can be accessed by anyone who makes it their business to do so. This is why to ensure that all the data is contained within a well-secured boundary, developers have created tools to ensure data security and management and Blockchain is one of those successful tools.
What is Blockchain Technology?
The origin of Blockchain is closely associated with the advent of financial instruments. It revolves around the basic idea that if you are about to conduct a financial transaction online, specifically at the time of trading, you need to ensure that your data for that transaction is secured.
Let’s take an example of your average trip to the bank, where no one would want their account number or pin code to be known to everyone who is walking around. Similarly, Blockchain is a tool that prevents your data to be shared with anyone irrelevant. It keeps all of your information well-guarded, so no breaches happen.
To explain it a bit technically, Blockchain technology holds information of all the transactions that take place in the cryptocurrency realm. Blockchain, just as the name suggests, is the chain of blocks where the blocks hold the information about the transaction that has taken place and determine the digital information and chains determine the public database.
At the time of the transaction, a blockchain holds information about the date and time of that particular transaction along with the total amount spent. For each transaction, there is a separate block and what distinguishes each block from one another is the information that is stored in it. When a new block is created, it is verified by thousands of other blocks across the internet and obviously, to carry this out, a high-speed internet connection is required. Upon successful verification, the block is then added to a chain, which creates a new record and a new history to accompany it. A single connection that falsifies that record would affect all the instances, and ultimately, you would end up with a failed transaction attempt.
Is Blockchain Technology Trustworthy?
Tampered and sold as a safe alternative to perform transactions, it is often speculated whether blockchain technology is as safe as it’s claimed to be. Experts claim that Blockchain has been designed in such a way that it is highly immune to human-error and shamming activities . There are three characteristics that are considered as the key role players in maintaining blockchain security namely, cryptography, decentralization, and consensus. The entire security of the blockchain is intertwined between these three characteristics. Supposedly, if anyone of these characteristics does a foul play, blockchain’s security will be the first thing at stake.
Can Blockchain Technology Be Misused?
Although it was primarily introduced for the financial sector, the main purpose of Blockchain is to provide a highly secure database to users where data is only available to relevant parties and no one else. However, this provides some of the users an incentive to misuse this technology by masking or ‘securing’ data, which is potentially illegal or pertains to malware. The data on Blockchains, like all the other data on the internet, is prone to hacking and misuse for fraudulent activities. Due to the encryption enforced by the tool, it is often next to impossible to retrieve your data in a Blockchain once it has been infected with malware.
Since blockchain enables encrypted data storage of any kind, it is very easy to create multiple digital IDs and have blockchain prevent them from being tracked. Individuals such as refugees and unauthorized nationality holders are most probable ones to exploit this particular feature to make sure that their identity exists, but remains inaccessible and untraceable at the same time.
Governments are another culprit that can potentially misuse blockchain technology. It often happens that the public is asked to share their details by enticing them with a fake investment opportunity. Those who fall for such traps, end up disclosing all of their important and personal data, which can be potentially exploited by the government. Therefore, if you come across any such scheme, then do run a check because it is better to be safe than losing all of your important data.
Another most common misuse of Blockchain is that it is used to save data that shouldn’t be accessible to the public in the first place. Since blockchain technology is seemingly safe, people go ahead and save their important financial data over it. Seeing this as an opportunity, some parties breach information and then steal it for their own good. These parties are individuals and organizations involved in illegal activities. They often create a falsified image and mask their data using Blockchains, which on the outside seems like harmless encrypted data, but actually contains details of endless illegal activities.
These blockchains are so well-secured that even if the regulatory authorities were to search for illegal information, even they would have to go through a lot of struggle.
All in All
Although it is a breakthrough that has nonetheless helped in carrying out many successful transactional activities, we can’t overlook the fact that Blockchain will continue to be a ‘safe haven’ for covering up for all the illegal activities. On February 9th, 2019 BBC reported that images of child pornography were added to a ledger of Bitcoin Satoshi Vision, BSV, via payment processor. This confirms our notion and adds to our concern even more. Perhaps, Blockchain Technology is not safe after all. Get in Touch with a mobile app development company