Bitcoin is the world’s largest cryptocurrency, and it is defined as a peer-to-peer electronic cash system. It is a decentralized currency that is also considered hack-proof. Many people consider bitcoin as hack-proof because it is based on blockchain that records every transaction and uses cryptography to record transactions. All the transactions on the blockchain are reviewed by the bitcoin network, making it impossible for fraudsters to attack the blockchain and manipulate the records. The main reason why no one can attack blockchain is because of its distributed and decentralized nature.
Bitcoin is hack-proof which means it cannot be hacked, but the interfaces through which transactions are done like wallets and crypto exchanges are vulnerable to cyberattacks. On the contrary, many exchanges and wallets have been easy targets of hackers because no security measures are used to protect the digital coins. You can protect your bitcoins and profit from them by visiting the FBC14 of the Bitcoin profit app.
Many people say that it is difficult to hack blockchain but do they know why is it so? In this article, we will learn why blockchain is impossible to hack and there are any chances that it can still be hacked or not.
Why is bitcoin well-thought-out as hack-proof?
Miners are the participants that contribute a lot to the bitcoin network. Miners verify the bitcoin transactions and add them into the block by solving the complex algorithms. Complex mathematical algorithms are created using a cryptographic hash function. When miners solve 1 MB worth of transactions, they collect into a block, and when each block is added to the blockchain ledger, each computer or node gets updated. They collectively have to agree on validating the block.
Once all nodes agree to block, the blockchain ledger gets automatically updated. Manipulating blockchain or bitcoin networks is tremendously difficult. Earlier, people thought that there would be double-spending issues with cryptocurrencies, which means spending a bitcoin that is already spent. But this means over-writing a block which is not impossible because blockchain records transactions in chronological order. The power-intensive features of blockchain make it impossible to overwrite or manipulate the already written record, which makes blockchain hack-proof.
What if someone tries to hack the blockchain?
Blockchain ledger involves a big network of nodes, and each node has a copy of the blockchain ledger that gets updated with every block. There are thousands of nodes located at different places that record and get updates about bitcoin transactions. If a hacker tries to hack the blockchain ledger, he/she would require not only to hack one node but 51% of nodes to hack bitcoin’s blockchain.
A hacker would require to have control over more than 51% of nodes, hash rate, and transaction history to manipulate them. A 51% attack on the blockchain is a major threat, but it is unlikely to occur as it is difficult to achieve even if a hacker is the mastermind and uses different techniques to hack.
Has the bitcoin network ever gets turned off?
It is impossible to turn off the bitcoin network if it is impossible to achieve 51% control over the nodes. Because bitcoin and blockchain are decentralized and aren’t backed by the government, many central authorities and financial institutions have tried to turn off or shut down the bitcoin network, but it was never possible. Still, shut off of bitcoin isn’t impossible as there might be some extreme situations that could lead to the end of bitcoin, for example, power outage across the world shut down all mediums of communications and more.
Bitcoin is decentralized, which means no government or one central authority can shut down the bitcoin network. However, many governments have tried to ban cryptocurrencies, but they can’t ban cryptocurrencies wholly. People of those countries with a ban on cryptocurrencies are restricted from investing or accept bitcoins and other cryptocurrencies. Bitcoin’s been in the industry for more than a decade, and people love the unexpected rate of returns that they are getting on bitcoin investments.
Why and how do bitcoins get hacked or stolen?
Bitcoins are digital coins that are stored in digital wallets. These wallets are connected to the internet, which makes them susceptible to hacks and attacks. Hackers get a chance to attack digital wallets where there is no or less security. It is advised to use cold storage wallets to store your digital coins.