Relationship between Cryptocurrency and Blockchain — Viewers Decide

In several ways, blockchain technology provides decentralized safety and confidence. The order in which newly added blocks are always chronological. It means that new blocks are in the “tail” of the blockchain.

Unless the majority of nodes in the network agree, changing the contents of a block is challenging once it is at the end of the blockchain. It is because each block stores not only its hash but also the hash of the previous block and the date discussed earlier.

A hash code is a string of numbers and letters generated by a mathematical function from digital information. The hash code will be invalidated whenever there is any change to the original data.

For example, a hacker who also operates a node on a blockchain network intends to steal cryptocurrency from everyone by changing the blockchain. If one person changed their copy, it would no longer be in sync with the rest.

This copy would stand out when everyone compares their documents to each other, and the hacker’s version of the chain would get disregarded as fake.

To successfully execute such a hack, the attacker would need to control and change 51% or more of the blockchain copies simultaneously, making the altered copy the majority copy and, hence, the agreed-upon chain.

Because of the new timestamps and hash codes, all of the blocks would have to be redone, which would be costly and time-consuming. The magnitude and rapid expansion of many cryptocurrency networks would make it too expensive to accomplish such a task.

It’s not only impractical but also highly unlikely to yield any results at all. Network participants would detect such a significant change to the blockchain immediately. Members of the network would like then hard fork off to a new, unaffected chain version.

Relationship between Cryptocurrency and Blockchain — Viewers Decide

Categories: Economic History

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