What Is Blockchain security?

The theft of user information has become increasingly prevalent today, mainly due to the vulnerability of information stored on centralized servers, which are exposed to cyber-attacks. Avoiding dependence on a centralized server can provide an additional layer of security. Blockchain addresses this issue by allowing users to create decentralized identities and adding an additional authentication step in the form of transactions, thus recording user events in this decentralized network.

The security structure of blockchain is based on several elements:

• Blocks: contain information about transactions.

• Transactions: These are the events recorded in the blockchain.

• Hash: Converts any data into a unique and unrepeatable string.

• Digital signatures: Provide authentication and verification of data integrity.

• Miners: Verify and validate transactions, adding new blocks to the blockchain.

Common threats on the Internet include identity spoofing, fraud, scams and data centralization. For this Blockchain offers the following solutions:

• Asymmetric cryptography: uses public and private keys to encrypt and decrypt data asymmetrically, providing an additional level of security.

• Blocks: The linked block structure guarantees data integrity and prevents fraud.

• Consensus Mechanisms: Agreements between various members of the chain that validate and approve transactions, such as Proof of Work (POW) and Proof of Stake (POS), which secure the network and guarantee the validity of transactions.

An example of how blockchain has protected software is the case of the Ethereum smart contract platform. Ethereum uses blockchain to execute smart contracts in a secure and decentralized manner. A notable case was the DAO attack in 2016, where a smart contract was exploited, causing a rift in the community. However, Ethereum implemented a hard fork to reverse malicious transactions and protect users' funds.

CriptoNoticias. (2023). Periodista habría encontrado al hacker que robó USD 10 mil millones en Ethereum en 2016. Recuperado de https://www.criptonoticias.com/comunidad/periodista-haber-encontrado-hacker-robo-usd-10mil-millones-ethereum-2016/#google_vignette.

In conclusion, Blockchain offers a great advantage in data protection and provides trust in the ever-evolving Internet. Its response to threats such as identity spoofing, fraud and data centralization demonstrates its ability to provide a secure and trusted environment for online transactions.