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What Makes Bitcoin Secure?

It’s no secret that criminals have hacked the systems of many companies globally. In most cases, financial rewards motivate most hacks. For this reason, many people wonder whether criminals can hack the Bitcoin network. After all, Bitcoin’s popularity and increasing value make it a tempting target for hackers.

Over the years, Bitcoin has proven its remarkable resilience to stresses and shocks. Although thugs have hacked some crypto exchanges, controlling the Bitcoin network is a daunting prospect. Here’s what makes this virtual currency secure.

Decentralization

Bitcoin has a decentralized network comprising thousands of nodes. These nodes are in different geographic locations, and they track all transactions that happen on Bitcoin’s system. The distribution of these nodes ensures that when something happens to a single node or server, the others function and keep the record on the track.

What’s more, Bitcoin’s decentralization means that hacking into a single server is pointless. A person can’t steal anything without the other nodes preventing it unless they control up to 51% of all the nodes. And this is extremely unlikely.

Secure Cryptography

Blockchain is the unique system backing Bitcoin. Unlike most financial solutions, technology improves blockchain, relying on cryptography and safe core concepts. Ideally, blockchain has many volunteers that sign hashes to validate transactions using cryptography. And this ensures that every transaction is irreversible with strong Bitcoin data security.

Using public-key cryptography means that every transaction meets the highest integrity and authenticity standards. Bitcoin users sign digital signatures using Elliptical Curve Digital Signature Algorithm. That means deriving a public key requires a person to brute-force search it by trying all possible private-key values to see whether they can generate a corresponding public key. And this is practically impossible because there are around 1077 possible combinations.

Bitcoin Has a Public Blockchain

Everybody in the blockchain can see Bitcoin transactions. That’s because Bitcoin has a public ledger. This transparency of Bitcoin’s ledger means that every transaction is available to the public. Thus, scamming the system or cheating is very difficult.

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Bitcoin is Permissionless

Being decentralized and publicly available could mean little if this virtual currency requires you to seek permission from some authorities to use it. However, this digital currency doesn’t have a regulatory body. Instead, it’s open to everybody. Bitcoin is fair and available to everybody because you don’t need permission to use it.

Irreversible Transactions

Bitcoin runs on the blockchain. Every block is a collection of newly created transactions, connecting to the last batch of the transactions. Thus, the system allows a one-way cryptographic function, thereby creating a chain.

A blockchain is a write-only ledger. That means people can add information but can’t modify the blocks. It’s like the system buries all transactions under the other blocks’ weight. Thus, people can’t reverse Bitcoin transactions like a credit card company can do after a customer completes a transaction accidentally.

Final Thoughts

256-bit SHA hash functions protect Bitcoin’s blockchain. And this is also the same security level that the military, virtual private networks and banks use to ensure systems’ encryption. However, the SHA hash functions create a unique fingerprint for all transactions, and nobody can reconstruct them. What’s more, Bitcoin’s blockchain uses a consensus to build security. Thus, hacking into the Bitcoin system requires a person to control over 51% of the system, which is incredibly unlikely.

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