It is a decentralized public ledger that is used to record transactions and track assets in a business network (assets such as cars, houses, cash, etc.). It simply records data in blocks that are stored in a chain. Blockchain is a digitally distributed advanced database mechanism that allows transparent information sharing within a business network. Blockchain is best known for its crucial role in cryptocurrencies such as BITCOIN
HISTORY OF BLOCKCHAIN
Blockchain technology was first introduced by researcher scientists named Stuart Haber and W. Scott Stornetta. These scientists wanted some computational practical solution for time-stamping the digital documents so that they couldn’t be tempered or misdated. So, both scientists build a system with the help of cryptography. In this system, the time-stamped documents are stored in a chain of blocks.
In 1992 Merkle Trees established a legal corporation by using the system which is developed by Stuart Haber and W. Scott Stornetta with some more features. Hence, blockchain technology became effective to store several documents to be stored in one block. Merkle used a secured chain of blocks that stores multiple data records in a sequence. However, this technology was not used when the patent came into existence in 2004.
In the year 2000, Stefan Konst published his theory of cryptographically secured chains, with ideas for implementation.
Afterward, in 2004, cryptographic activist Hal Finney introduced a system for digital cash known as” reusable proof of work.” This was the turning point in the history of blockchain and cryptography.
In 2008, Satoshi Nakamoto envision the concept of “distributed blockchain”. A peer-to-peer electronic cash system. He modified the Merkle tree model and created a more secure system that contains the history of data exchange securely. Nakamoto’s system follows a peer-to-peer network of time stamping. His system became so famous that blockchain become the backbone of cryptography.
After that in 2009, the evolution of the blockchain is steady and became a need in various sectors. In 2009, Satoshi Nakamoto releases a Bitcoin white paper.
The year 2014 is a game-changing year for blockchain technology. Blockchain technology is separated from the currency and blockchain 2.0 is introduced. financial institutions and other institutions are focusing on developing blockchain technologies rather than on digital currency.
In 2015, Ethereum Frontier Network was launched, and developers starts writing smart contracts and dApps that could be deployed to a live network. In the same year, the Linux Foundation established the Hyperledger project.
In 2016, The word blockchain was accepted as a single word instead of two different words as they were in Nakamoto’s original paper.
Japan recognized bitcoin as a legal currency in 2017. Block.one company introduced the EOS blockchain operating system which was developed to support commercial decentralized applications.
In 2018 bitcoin turned 10. The value continued to drop, reaching the value of $3,800 at the end of the year. Online platforms like Google, Twitter, and Facebook prohibit the advertising of cryptocurrencies.
In the year 2019, the Ethereum network transactions exceed 1 million per day. Amazon announced the general availability of the amazon managed blockchain service on AWS.
In 2020, stablecoins were in demand as they promise more stability than traditional cryptocurrencies. This year Ethereum launched Beacon Chain in preparation for Ethereum 2.0.
DIFFERENCES BETWEEN ETHEREUM AND BITCOIN
|Ethereum is a blockchain-based distributed platform. The network currency of Ethereum is known as Ether (ETH).||Bitcoin is a digital currency that can be transferred on a peer-to-peer (P2P) network. Without the need for any central organization.|
|It is designed to be scalable, decentralized, and programmable.||Bitcoin is created, stored, transacted, and distributed using a decentralized distributed system known as the blockchain.|
|Ethereum has more capability than bitcoin and has smart contract support.||Bitcoin is more emply as a platform to store data.|
|Ethereum usually takes a couple of seconds to verify a transaction.||Whereas Transactions on bitcoin could take a couple of minutes to be verified.|
|This network was launched in 2015.||It was first released in 2009.|
|Built with the programming language, solidity.||Built with the programming language c++.|
|The native token is ETHER.||The native token is (BTC).|
Security is necessary to protect some vital information or transaction details so that hackers or unauthorized users do not get access to it. As blockchain dependency is increasing it is very important to be concerned about its security. Blockchain security is a risk management technique that aims to protect transactions and hence the whole blockchain network. It is usually executed with the help of cybersecurity, authorized services, and ethical users.
WHY IS IT IMPORTANT TO SECURE BLOCKCHAIN?
As we know blockchain is an immutable ledger with no involvement of third-party organizations. It also uses cryptography to cover some details. So, hackers find it almost impossible to trifle with the blocks. But some loopholes allow the hackers to perform some malicious activities as blockchain networks.
Blockchain attacks are cyber attacks that can be done by outside users or the users who are involved in the network. some of the attacks are as follows.
- SYBIL ATTACKS: hackers try to increase the unnecessary traffic in the network. In this, the malicious users flood the network with unwanted packets to create traffic in the network.
- ECLIPSE ATTACK: in this attack hackers try to duplicate the node. The users eclipse(hide) the original node and broadcast the fake node formed by the hackers.
- 51% ATTACK: hackers try to control the network. they take control of 51% of the mining. It is known as the majority attack.
- FINNEY ATTACK: the attackers mine a block stealthily and send the unconfirmed transaction to other nodes, possibly to a merchant node. it is a type of double-spending attack that affects bitcoin and any cryptocurrency derived from it.
So, security is of prime concern in blockchain as millions of transactions are involved and these are the reasons why blockchain should be secured.
BEST WAY TO BUILDING SECURE BLOCKCHAIN NETWORK
- Secure the internet: users must avoid public Wi-Fi as hackers often try to hack Wi-Fi as any hacker can hack public networks and access valuable information.
- Passwords: it is always advisable to put strong passwords with a combination of capital letters, small letters, numbers, and special characters.
- Use of cold wallets: cold wallets are not prone to cyberattacks. they do not connect to the internet; therefore, users can secure their private keys.
- Blockchain penetration testing: those who create blockchain networks should get penetration testing done by an ethical hacker to test the strength of the security blockchain.
There are plenty of ways in which we can secure blockchain networks.
Blockchain is a system of recording information in a protective way in which it is difficult or impossible to change, hack, or cheat the system. It is a digital ledger of transactions that is distributed across the entire network of computer systems on the blockchain.