Blockchain security: how does it work?
- July 17, 2019
- Posted by: WAS Insurance
- Category: Competitive research, Economics, Investment
To say something is 100% secure could be a little bit doubtful, but techcnology are here to show you it works an effective way. By the way, if we put safety and cryptocurrency side by side, you could feel, at least, worried. Well, we are here to tell you not to, and we are going to show you why trough and explanation about how Blockchain works – technology that keeps information safe.
Blockchain stores data using sophisticated math and innovative software rules, a technology created to be immutable, tamper-proof and democratic through three defining characteristics: decentralization, cryptography and consensus. Let’s understand about it:
Decentralization: no one has the power controll besides you.
That’s it. Cryptocurrency is not controlled by any financial instituition or a central authority. Besides most financial and governamental systems are indeed centralized, cryptocurrency has it processes distributed and that means no outside authority can take your currency.
Cryptography of Blockchain is the method of encrypting information through complex mathematics. Each network participant has its own private key to have access to transactions data, it works as a personal fingerprint.
Each block of Blockchain has a a cryptographic fingerprint and a “consensus protocol”, which is the process by which the nodes in the network agree with rules determinated on a shared history. It is na agreement between various devices.
Cryptocurrency involves a high level of technlogy to keep investors safe, as Blockchain. Its database allows you to invest with extremely safety. Besides, it is consistent and available at all times. “Wallets” are another example of techonology for cryptocurrency – a softwares that allows you to keep your cryptocoins safe.
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