The duality between the security of Blockchain structures and the instability of cryptocurrencies

Filippo Calabrese

Filippo Calabrese

Table of Contents

Introduction

When it comes to cryptocurrencies, it is easy to be faced with a great deal of polarization, a dualism that involves both users and investors, as well as computer scientists and those of us who actively work on the Blockchain framework. The former, in this sense, are divided between the catastrophists, who think that the world of crypto and Blockchain is just a flash in the pan because of the strong fluctuations, and those who, on the other hand, are very hopeful about the future of this technology, seeing all that is good about it. As always, the truth lies in the middle and it is only fair to delve into the subject and the duality between Blockchain and cryptocurrency technology.

In this sense, cryptocurrencies are only a truly marginal aspect of Blockchain technology, a small piece of a larger, wide-ranging system. Thanks to Blockchain technology, in fact, it is possible to create very secure applications that make decentralization the pivotal point, in a combination of control and certification that makes it possible to identify with certainty the validity of each and every piece that makes up the chain, effectively opening up a potentially boundless world of applications related to the development of Internet security applications. However, this vision, which is right and shared, seems to clash with the uncertainty and fluctuation resulting from the value of cryptocurrencies.

 

How are cryptocurrencies and blockchain related to each other?

The reason why cryptocurrencies are linked to the Blockchain system-which, by the way, is the only reason why these have made their way and established themselves as the sole medium of exchange for certain transactions-is derived from the fact that the security mechanism underlying the structure is unchangeable, certain, and clearly identifiable within a defined time space. As a digital currency, cryptos need an independent body to guarantee their veracity. For fiat currencies it is the state, a single, centralized entity, while for digital currencies it is the individual users, holders of a unique, digital certificate that makes up the Blockchain.

The devaluations and instability suffered by cryptocurrencies, in fact, stem from reasons completely unrelated to the Blockchain mechanism, which is indeed the only means by which they survive. The reasons why fluctuations affect the digital currency market lie elsewhere, certainly in the presence of large investors and from the wild speculation that some states are engaging in. In this sense, investing in the development of a Blockchain for the protection of the information of a corporate network is the best choice currently possible, and in this sense, our company has already been working successfully and for many years on similar operations, receiving great appreciation from users.

 

Does Blockchain represent the future of security?

In light of this information, it becomes clear how the Blockchain will not be long in establishing itself within the development of security or business management applications as the only guiding point to follow. Depending on the development and resources allocated to the development of an IT network based on the Blockchain, in this sense, it is possible to create increasingly complex to articulated network architectures, putting users in a position to make transactions of various kinds, keeping a record of them that is immutable over time, secure and verifiable at any time, even after many, many years.
With Blockchain, in fact, we move from a centralized control system where the fundamental data for the identification of a user and his ability to make transactions are traced back to a single place, to a diffuse system, where each user controls the previous one, while the next one can operate only if it is recognized as valid and truthful by the one who preceded it. Within IT application development, the possibilities of this system are endless: in essence, each individual user and operator will be able to be viewed in the same way as a notary who certifies, at any given time, the veracity of the information contained therein.
What are the current limitations of the Blockchain platform?

As of today, there are two limits to the spread of the Blockchain platform and its applications. Given the dualism that the multiplicity of people make between cryptocurrencies and this system, not everyone trusts the great application possibilities. The risk here is that many businesses will miss the opportunity to develop a robust IT network for the development of their economic enterprises, effectively sanctioning what could be considered a wasted opportunity. The second limitation of Blockchain relates to the speed of transactions per second. Taking Ethereum as an example, the speed at which it processes data is about 4.6 transactions per second-a significantly lower number than that of traditional circuits such as Mastercard and Visa.
In order to be able to understand the benefits of the Blockchain platform for developing secure enterprise applications and networks, in fact, contacting professionals in the field is definitely the way to go. This is why my company and I are dedicated to raising awareness of the importance of Blockchain, offering each interested party a customized and structured system to address their network security needs.

 

How does the Blockchain ensure the security of the information it contains?

One of the most important features of the Blockchain, as well as its pillar, is its so-called immutability. In this sense, according to this view, the Blockchain is basically a ledger, like that of auditors, but with an improvement. In order to falsify the information it contains, in fact, the malicious party should be able to simultaneously modify all the data that make up the chain, in order to circumvent the data certification mechanism.

This is the most important aspect, which in fact makes the Blockchain a secure system where information is protected. Even if it were possible to hack the Blockchain, no one would be able to claim ownership of it, as all participants in the chain are in possession of an authentic copy that they can, in fact, use to verify data that is suspected to be false. The time stamp mechanism, which prevents the undoing or alteration of a change once it has been made, closes the circle once and for all.