Is blockchain safe? Blockchain technology is changing how people conduct business transactions. Blockchain proponents say that technology could make transactions faster, cheaper, and more transparent. The technology is used in many areas including verifying people’s identity, tracking assets, processing payments, and auditing the supply chain. Walmart uses blockchain technology to trace the origin of the fresh farm produce that’s sold at its stores to ensure food safety. As blockchain adoption grows, some investors wonder if blockchain is safe.
What makes blockchain safe?
A blockchain database will update itself every few minutes. Once updated, blockchain records can’t be changed. Therefore, a blockchain is designed to make the transaction transparent and the records tamperproof.
A transaction block will only join other blocks in a network if it passes the verification test. The involvement of a multitude of verifying parties or nodes scattered around the world and the need for consensus before a new block is added to a chain reduces the risk of errors in a blockchain record.
Since blockchain records aren’t stored in a single location, the database is accessible even if some of the nodes face problems. The distributed storage of blockchain records means that the information can’t be lost or compromised if any of the nodes are hacked or corrupted.
A blockchain network doesn’t have a central authority to dictate what happens. Therefore, no single entity can unilaterally alter information already stored in a blockchain, which helps improve the transparency of blockchain records.
