The blockchain is protected by several mechanisms that work together to ensure its security and integrity. Some of the key mechanisms include:
- Cryptography: Transactions on the blockchain are secured using complex mathematical algorithms that make it difficult for unauthorized parties to access or alter the information.
- Decentralization: The blockchain is a decentralized network, meaning that it is not controlled by any single entity. This makes it much more difficult for attackers to take control of the network or manipulate it.
- Consensus algorithms: In order for a new block to be added to the blockchain, a consensus must be reached among the participants in the network. This ensures that all transactions are valid and that the blockchain remains accurate and up-to-date.
- Proof of work: It is a consensus algorithm that is used by Bitcoin, where the network participants (miners) use computational power to solve complex mathematical problems to validate transactions, and in return, they are rewarded with newly minted bitcoins.
- Proof of stake: It is a consensus algorithm that is used by Ethereum, where the network participants validate transactions by staking their own cryptocurrency, instead of solving mathematical problems.
- Immutable: Once a transaction is recorded on the blockchain, it cannot be altered without the consensus of the network, making it extremely difficult to tamper with the data on the blockchain.
These mechanisms work together to ensure that the blockchain is secure and tamper-proof, making it an attractive option for a wide range of applications.
