Time and again, the financial world has been at stake for security and has been breached in no time. Consumers have put their pain when their hard-earned money got stolen, and the authorized organization showed helplessness in resolving the issues. Hacking net banking or mobile banking-enabled accounts, digital wallets, or UPI (Unified Payments Interface) transactions is quite easy nowadays. Tampering the details of transactions is possible within seconds with software or with the code breaching method. These security aspects also reveal that the integrity and promise for a safer online financial world are just a myth.
The yesteryear online transaction methods such as IMPS (Immediate Payment Service), NEFT (National Electronic Funds Transfer) or even digital wallets have limited security, and trusting their potential would hamper our expectations and money only. Certainly, conventional financial payment systems have multiple loopholes, one of them is security challenges, and resolving them in the current scenario doesn’t look possible. The best possible alternative to these issues is to adopt a payment method based on a stronger technology which keeps the security of transactions at the apex. It’s none other than Blockchain paving a safer digital economy.
Blockchain is a new-age technology for safer transaction methods, chiefly in cryptocurrency. It’s a computational practical solution for time-stamping digital assets so that they can’t be backdated or tampered with. Blockchain is based on the concept of cryptography allowing the creation of a secured chain of blocks to store the time-stamping documents.
Key takeaways that make blockchain safer and stronger transaction method:
- Merkle Trees were added to the design and concept of blockchain, allowing for the creation of a “secured chain of blocks”. It stored a series of data records, and each data record was connected to the one before it. The newest entry or data record includes the history of the entire chain. Though the concept was remodelled later as this technology went unnoticed.
- Tampering blockchain is a difficult task as each block is connected to one another, and to breach the data of one block, every block needs to be hacked or fissured. Information of each block must be identified and modified to create a hole in the security that this technology provides.
- Data and blocks are protected by cryptography in which the users have their private keys that are assigned to the transactions and these keys act as a personal digital signature of each individual participant of the transaction ecosystem.
- Blockchain is a distributed ledger technology, i.e., it is distributed across peer-to-peer networks that are consistently updated and kept in sync. Since the data is not located in a central location, it cannot be changed from one computer. In fact, to breach the security of blockchain technology, 51% of data or computing resources needed to be hacked.
- A new participant can enter the blockchain network only when an existing user introduces the new one, and for this, the existing participant needs confirmation from most stakeholders or participants of the network.
Blockchain is proving its worth again and again, especially when it comes to the security concerns of online transaction methods. Leaving behind the existing online payment methods, it is establishing itself as the most secured and reliable online transaction system of the future. Over the next few years, we may see some more evolutions in this technology making it a more secure, streamlined, and most preferred payment method.