The Impact of Block Chain on Digital Transaction Security


Block chain consists of a chain of blocks linked together in a network with each of them communicating with the next block in the network. The block chain carries out the function of keeping records of all the transactions made with cryptocurrency and it does this effectively. This means that none of the transactions will ever go unrecorded and this makes it very easy to trace each transaction in the cryptocurrency world. Block chain helps to introduce transparency into the cryptocurrency world and also helps to reduce the risk of fraud, which are just few of the many benefits of blockchain.

Block chain has a database that is adequately and independently managed with the aid of a peer-to-peer system. This is done along with a distributed timestamping server and the entire process is managed efficiently to ensure that the block chain never misses any transaction. The cryptocurrency transactions are recorded in the blockchain, irrespective of where that particular transaction takes place.  The record of the transaction includes the wallet address of the sender, the wallet address of the receiver and the amount of cryptocurrency that is involved in the said transaction. The block chain also has a record of the time on which the transaction takes place.

blockchainThe block chain helps to improve the security of all cryptocurrency transactions. For example, only those who have access to the private or public keys can access the details of the transaction.  Both the public and private keys also work together to further improve the security of the digital transaction. They do this by creating a digital signature so that each trader that owns the particular amount transacted can be linked to the particular record very easily.  If you are one of those that think a bitcoin transaction cannot be traced, then you better think again because you will be wrong totally.