Blockchain is considered to be one of the most reliable means to secure all the different types of transactions that happen in a business. However, it is also important to know how blockchain offers additional security over any conventional transaction processes. In this article, we will learn about all those things that make business transactions safe and secure.
How does blockchain offer more security than traditional systems?
As the hacker would require modifying the block with the records and those associated with it to prevent any detection, it makes it tough to meddle with a particular record. This makes block chain services far more secure and safer than other traditional ways to perform transactions.
Some of the other inherent security features of a blockchain technology are that the records present on the blockchain are safeguarded via cryptography. All network participants obtain their own personal keys that are allocated to the business transactions they perform and act as a form of a personalized digital signature.
If any record gets modified, then the signature becomes invalid. The peer network will learn at that moment when something mischievous happens. Such prompt notification helps a lot in preventing further damages.
What are the two types of blockchain?
It is essential to evaluate the technology to check whether or not it provides you the security you desire. There are basically two main forms of blockchain. These are private and public with various variations. Private and public blockchains differ in the way it affects the security level offered by them.
What are the ways in which public and private blockchain differ in a business?
Public blockchains make use of computers that connects itself to the public internet so as to validate business transactions and then form a bundle and adds them to the ledger. This ledger can be accessed by any computer that is connected to the web. Private blockchains, only permit organizations that are known to join.
The key difference between both these forms is in the way where the confidential information of the business moves through the network and who has got access to it. In this regard, a public blockchain would not be appropriate for your business.
Another significant thing that you need to discuss is that any anonymous entity can access public blockchains, whereas private blockchains make use of identity to access privileges and confirm membership. This helps the participants present in the network to learn who they are working with.
There is one more factor that differentiates a public blockchain from a private one. It is according to the way transactions get verified. In a public blockchain, network participants should agree through agreement.
Bitcoin is a well-known means to explain a public blockchain. It achieves agreement through “mining.” The disadvantage of bitcoin is that it needs an enormous computational power, mostly for an enterprise level public blockchains.
A private blockchain, on the other hand, comprises of permissioned network where consensus can be obtained via through a process known as “selective endorsement”. Here, only the known ones verify business transactions. Only participants who have the appropriate permissions and access can maintain their transaction ledger.
So, this was all about how blockchain ensures safety of business transactions in an enterprise.