Introduction
There are experts who believe that if blockchain technology and cryptocurrency had been used from the start, the world could have prevented or detected past scams. If Blockchain and Cryptocurrency would have been in the system, then the scam would have been traced, and the money would have been recovered.
Recently, there have been several fraudulent activities that have surfaced in the private and public banking sectors. These activities show how much the traditional financial system has degraded.
Fortunately, people are now aware of the advantages that Blockchain technology gives us over the traditional financial system.
What Is Blockchain?
Blockchain technology is a core part of the Cryptocurrency operating system. The concept behind blockchain technology is that there is no single server; instead, thousands of servers are interconnected with each other forming a public ledger network. This network forms Blockchain technology and is known for high-security features that are used end to end encryption.
The whole technology is run by two keys: Private keys and Public keys. These keys help the user with the transaction. Private keys help the user access its crypto assets, and the public key helps them send and receive transactions from the other end.
How Blockchain Works?
You can consider Blockchain technology as a bookkeeping system that stores information in the network of several connected computers. Every transaction that you make with the help of the Blockchain network is transparent and traceable.
Blockchain technology is like a public ledger network that stores every entry you make. However, there is one noticeable difference between ledger and Blockchain; there are no intermediaries.
If you are in the market, you will be aware that a security transaction takes more than a couple of weeks to complete the whole process. However, with the Blockchain network-based transaction, you will be able to archive the same in just a couple of minutes.
How Does Blockchain Fight Fraudulent activity?
The complexity of the Blockchain network is denser than any other network. Here all the digital records come together to form blocks. These blocks become the chain connecting several systems to form a complex blockchain network. Every block is unique in its way and is connected with each other via a unique number.
Here is how Blockchain can help you fight fraudulent activity?
Distributed Network
The Blockchain is a distributed public ledger network that stores all its data in the network. As it’s decentralized in nature, there is no authority that controls this network. Every member of the network can be considered the owner of the network. The management of the data is spread across the network. Hence, there are no loopholes or cracks from where fraudulent activity can seep in.
Immutability
The best part of the blockchain network is that it cannot be altered once data is entered into the network. To ensure that the right data is being encrypted in the network, the network participants validate the block’s data. This process of validating the data is known as Consensus.
This feature is what is considered to the peak of the security features. Today you will find that most of the companies adopting the block china technology; why? It is due to its immutability.
It Is Permissible
When you are in the business, there is always the question of transferring confidential data. To ensure the safety of the data, you can use the permission features on the data. Hence, the person who has permission can go through the data.
Final Thoughts
No matter how we see it, blockchain technology is yet to reach its full potential. The way it is now, it does not have the ability to provide protection from all kinds of fraudulent activity. There have been cases where the blockchain network has failed to provide the necessary security protection.
When you are in the decentralized network, there is always a chance of having open doors, this allows fraudulent activity to seep in. Therefore, if you want to invest in blockchain technology, it is critically important that you seek help from an industry professional.
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Piran is the bestselling author of the Zobuz, TheHearus and other well known Blogs. Her books have sold hundred of copies and are published in different languages.
