The blockchain is the core of the cryptocurrency and digital era, for, without it, there would be tons of discrepancies and security flaws within transactions.
What Makes a Blockchain Secure?
Blockchain security is the very basis of cryptocurrency transactions. Security is the underlying structure of cryptocurrency platforms, which has prevented digital currencies like BTC from double spending, duplicates, and destruction.
The blockchain is the core of the cryptocurrency and digital era, for, without it, there would be tons of discrepancies and security flaws within transactions. Its unique attribute is achieved through various mechanics, including advanced cryptographic techniques and mathematical models of behavior and decision-making using Game theory.
Blockchain Security: An Innovative Set of Rules
Blockchain technology allows for tamper-proof transactions between people who ordinarily wouldn’t trust each other. This achieves a trustless forum of transactions using a set of innovative rules that have proven to be unsusceptible to attacks over the years.
This is made possible because Blockchain stores data using complex maths and sophisticated software rules including game theory. This technology has kept hackers on their toes resulting in an immutable and incorruptible technology.
The Concepts of Immutability and Consensus
Immutability and consensus are the two chief reasons why the blockchain is considered trustless and tamper-proof; they play a major role in ensuring the blockchain’s unhackable nature. By immutability, the blockchain ensures that transactions are not duplicated, preventing alteration of transactions that have already been confirmed. It’s safe to say that the blockchain does not only store financial transaction records, on distributed ledger technology, but it also stores other data that is non-finance-related.
By consensus, the blockchain uses a node concept to share data and achieve consensus in the network. For example, in the Bitcoin blockchain; the shared data is the history of every transaction ever made, the ledger is stored in multiple copies on a network of computers called nodes, owned by miners.
Every time a transaction is submitted for approval, the nodes do the work of verifying such transactions, if valid, will have to agree for such transactions to be mined(approved). After which such mined data is added to a set of previously approved data chains called blocks. Miners who successfully add a new block to the chain get rewarded in Bitcoin.
Consensus Algorithm
Specifically, the concept of consensus and achieving it is made possible by the consensus algorithm used by each blockchain type. The consensus algorithm is the primary root of blockchain technology. They are what make blockchain types different from the next and what fuels each blockchain type’s behavior. The two most popular types of consensus are the Proof-of-Work (POW) where miners solve a problem to verify a transaction and Proof-of-Stake (POS) which encourages users to stake tokens until he/she becomes a validator.
The Bitcoin network uses Proof-of-Work to achieve its consensus, which has proven very effective against malicious attacks. On the other hand, another legacy blockchains, ETH, is migrating its network from Proof-of-Work to Proof-of-Stake in its upcoming updates aiming to reduce fees significantly in ETH 2.0.
Cryptography and Blockchain Security
Cryptography is of core importance to blockchain technology, providing security to the blockchain. Security is achieved through using cryptographic hashing functions. Hashing is the process where an algorithm (hash function) receives an input of data of any size and returns output in a hash that contains a predictable and fixed size of length. This allows for data to be protected from the third party to gain access and knowledge of the private messages or transactions during a communication process.
Generally, the blockchain makes use of the SHA 256 hashing algorithm as it is a common hash function. Hash functions help provide a single view of blockchain to every participant, acting as a unique identifier for each transaction added to the previous block. Hash functions thereby protect the blockchain’s integrity, since reverse engineering is not possible on the output data.
The Weakness of the Blockchain
By itself, a blockchain is very much secured owing to its strict rules and mathematical implementation; it has proven to be tamper-proof and has withstood several attacks. In contrast, the weak link lies in the exploitative tendencies of smart contracts, a type of automated transaction between parties written in lines of codes that have resulted in some significant losses.
The largest host of smart contrasts e.g., the exploitation on an unforeseen quirk in a smart contract code written on the Ethereum blockchain which resulted in the loss of 3.6 Million Ether worth around $80 million at the time from Decentralized Autonomous Organization (DAO), a type of blockchain-based investment funds, including hacks and exploitations that have greatly bedeviled the DeFi community.
Also, there is the growing concern of the centralization of blue-chip cryptocurrencies, such as Ether and BTC. This is because the mining of these coins seems to be concentrated heavily in selected regions of the world.
Final Thoughts on Blockchain Security
There is nothing in existence that is perfect, something that contains no forms of loopholes. The chances of such loopholes getting exploited leaves a feeling of grave danger for a community that largely depends on and interact with the blockchain network, but a crucial aspect that has left everyone feeling really confident, remains the unhackable nature of the blockchain; in actual sense, it hasn’t known any type of successful attacks. However, research is currently ongoing to reduce smart contract networks’ exploitative tendencies, the only weak link in blockchain technology. For those who wish to learn more about smart contract risks, check ou the following sources:
How To Spot a Potential RUG — Clear signs something is sketchy
How to Keep Your Funds SAFE — MetaMask Guide
Liquidity Siphon Rugpulls on The Binance Smart Chain
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This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News
A New Solana Memecoin With $19 Million: What is Milady Wif Hat?
Named after the renowned Solana meme coin Dogwifhat (WIF), Milady Wif Hat swiftly reached its maximum funding cap of 88,888 Solana (SOL) within hours of its launch.
Introduction: Milady Wif Hat
Milady Wif Hat, a new meme coin on the Solana network, has made waves by swiftly gathering $19 million in funding during its presale in just two hours. Named after the well-known Solana meme coin Dogwifhat (WIF), Milady Wif Hat garnered a maximum funding of 88,888 Solana (SOL).
🎩 Milady Wif Hat presale is now live! 🚀
— Milady (@miladymemecoin) March 18, 2024
Presale is live for the ever-fashionable SOL-loving Milady wif hat. Sending some love to the SOL community now 💗
Wallet address : 4K9tmyjpdu9ogw95JRTZkPkNppw8v1gnuGHBaYir96tt pic.twitter.com/1VdUjilB1E
With Milady Wif Hat, investors could participate with a minimum investment of 1 SOL, capped at 88,888 SOL. The presale, set for a 24-hour duration, saw an overwhelming response, becoming oversubscribed within hours of its launch.
📢 Closure of Milady wif hat presales! 🚀
— Milady (@miladymemecoin) March 18, 2024
Milady Wif Hat presale has soared to its limit of 88,888 SOL and is now closed. 🎉
Any additional Solana raised will have 100% of their funds returned.
Thank you all for the incredible support! 🙌 💖 pic.twitter.com/zEzDGEVlQy
Following the closure of the presale, additional contributions were reportedly returned.
Milady Origins
Milady memecoin's journey began as a decentralized meme token ($LADYS) on the Binance Smart Chain, debuting in 2022. Inspired by the internet meme culture surrounding "Milady" images, which exude grace and elegance, the project aims to infuse humor and lightheartedness into finance.
With a fixed total supply of 1 billion tokens, LADYS employs a deflationary mechanism, burning 10% of the initial supply to enhance scarcity. Furthermore, the tokenomics incorporate a 10% tax on transactions, with 5% redistributed to holders as rewards and the remaining 5% allocated to the liquidity pool, incentivizing long-term holding strategies.
Milady Wif Hat memecoin is the newest addition to the Milady ecosystem.
Challenges Along the Way
Despite its promising trajectory, Milady has faced challenges on its rise. Charlotte Fang, the founder of NFT projects Milady and Remilia, recently confirmed a security breach of treasury addresses, resulting in significant financial losses.
The transfer of ownership of the treasury to the drainer occurred before the suspicious transactions, according to PeckShield experts. Prior to this, in September 2023, Fang reported that the Milady NFT ecosystem developers had stolen about $1 million and hacked its social media accounts.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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