Eleven Questions On Blockchain Technology

This article Eleven Questions On Blockchain Technology is courtesy of kcbusinesslawgroup.com

When it comes to blockchain technology, a lot of people are confused. Heck, we even get a bit scrambled at times.  In theory, it’s not that difficult, but over time it can be a bit harder to unravel.  Below is a really nice article on 11 different things about blockchain and how it works. It’s a good article.11 Questions About Blockchain You May Feel Too Dumb to Ask11 Questions About Blockchain You May Feel Too Dumb to AskCHRISTINA COMBENQuestions about BlockchainUnless you dedicate your working week to crypto (and even then, new concepts develop at lightning speed), you probably still have a few questions about blockchain. And maybe you feel too dumb to ask them in your circle of knowledgeable peers. Well, there’s no judgment here. We’re all on a learning curve when it comes this new technology.This isn’t a beginner’s guide (if you want to take a deeper dive, we have you covered here). Think of this list of questions about blockchain more like the notes you borrowed from a classmate for the lectures you missed.Here are the answers to 11 questions about blockchain you probably feel too dumb to ask:1. Is Blockchain Actually Secure?Whether it’s idle chit-chat at the dinner table or your Mom wanting to know why Bithumb lost $30 million if Bitcoin can’t be hacked, you’ve probably been asked more than once if blockchain is secure. “Of course,” you say, except… you still have a nagging doubt.Is blockchain actually secure? And, if it isn’t, how do you explain its defects in simple terms? Here goes: Blockchain technology is secure, in the sense that it can’t be tampered with or censored. There’s also no single point of control, as it’s a decentralized system that belongs to no one person or group.What’s the advantage of that? Well, with traditional infrastructure, a hacker can easily enter a system (think Equifax) and cause unthinkable damage. This is because there is just one single point of entry–and failure–making the hack much easier.Hacking the blockchain requires a tremendous amount of money, power, and coordination (the likes of which not even many small countries could afford).So then, a blockchain can be hacked?The blockchain can be hacked. But it’s incredibly difficult.Technically, yes. In what’s called a 51% attack, a hacker would have to gain control over more than half of all the Bitcoin network mining hash power. And even then, all they could alter would be their own transactions in recent blocks by performing double operations. They wouldn’t be able to gain control over other people’s funds or operations.So of all the questions about blockchain, this is one of the most complex because, no, blockchain isn’t technically 100 percent secure. Just 99.9999999%. And also, not all blockchains are created equal, but we’ll get to that in a moment.2. How Many Blockchains Are There?There’s no easy answer to this question since it’s not a static number. New blockchains are being created just as new cryptocurrencies are coming out. The key takeaway is that there are […]

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