Is Blockchain Legit – A Quick Guide for you today!
If you are someone who wants to get into the blockchain or invest in crypto or NFTs, having queries like “Is Blockchain wallet legit?” are pretty common now. It’s because there are scams everywhere, and one cannot risk their investment if he isn’t sure about authenticity.
If you are new to Blockchain, you might think, Is Blockchain holdings legit? And is it safe to use? It’s because you are not aware of how Blockchain is operating. Well, to save you from having doubts, we have got answers to all your queries.
So, let’s begin!
How Does Blockchain Operate?
Do you know how Blockchain technology really operates? Well, you’ll find Blockchain like the web because it also relies on a decentralized network instead of relying only on one server.
Blockchain aims to record, store and distribute the blocks of digital data. And these digital blocks are chained to each other. Once the data gets stored in the Blockchain, it is practically impossible for anyone to alter, delete or destroy it. That’s why Blockchain has also been termed Distributed Ledger Technology (DLT).
But what makes it so? Well, here is how it operates; the block contains data, a hash of the current block, and the hash from the previous block. The hash is entirely unique, just like fingerprints.
So, every block will have a completely unique hash that no other block can have.
The fun part begins here. If someone tries to sneak in and changes anything in a single block, you can detect it with the help of hash because it will also change, resulting in changing the entire block.
Another thing that makes Blockchain so secure is that every block also contains a hash from the previous block. This technique ends up making a chain of blocks. The mechanism here is so dope.
If you tamper with any block, let’s say it’s the second block. It will change the hash of that block and change the hashes of the following blocks, making them invalid. It’s because they can no longer store valid hashes of the previous blocks.
Is Blockchain Safe To Use?
You might still wonder, is Blockchain safe to use? And is the concept of hashes enough to prevent tampering? The answer to the latter question is perhaps “No.” Computers these days are fast enough to read thousands of hashes per second. So, if a person tampers with the Blockchain, he can recalculate all the hashes and make its Blockchain valid.
Does it mean Blockchain isn’t secure? Before we answer this, you need to know that to mitigate the risk, and Blockchain has Proof-of-work, a mechanism that slows down the creation of Blockchains.
This mechanism makes it challenging for a person to tamper with the blocks. Because if you tamper with one block, you’re also required to recalculate the proof-of-work for the following blocks. So, the Blockchain is secured by the creative use of hashes and proof-of-work mechanisms.
That’s not it, though. Blockchain has another way to secure itself, and that’s by being distributed. Blockchain uses peer-to-peer networks where everyone is allowed to join. And when a person enters it, they get a full copy of Blockchain. It’s called a node which uses this to ensure everything is in order.
Now, if someone creates a new block, everyone gets to receive that block on the network. Then, every node checks it and verifies that the block hasn’t been tampered with. Each node adds the new block to its own Blockchain if everything goes well.
All the nodes create a consensus on the network!
And they agree on which blocks are valid and which are not. And if any block is tampered with, it gets rejected. Hence, if a person wants to tamper successfully, he needs to tamper with all the blocks on the Blockchain.
Not just that, he then needs to redo the proof-of-work and take control of 50% of the peer-to-peer network. Only then is it possible to alter the Blockchain? But that’s practically not possible.
So, if you’re worried about the safety of Blockchain, chill out because you’re safe!
How To Identify Fake Cryptocurrency?
Generally, the Blockchain mechanism is very safe, but we know that it’s a non-regulated setup. So, anyone on the internet can create a new cryptocurrency and scam its buyers. That’s why many cryptos and NFT scams are happening very often.
Let’s take a look at the five simple ways that can help you not fall prey to any cryptocurrency scam.
- Do a thorough background check of founders and moderators.
- Do an in-depth analysis of the currency’s website.
- Don’t run behind social media trends.
- Do your research! Don’t invest in any random crypto coin shared via Whatsapp or email with you.
- Don’t look for overnight gains; instead, focus on continuous and sustainable growth.
To cut it short, Blockchain is a safe and sound platform to use, but you always need to be cautious of scammers. Here, we have answered all your queries like how legit is Blockchain and how to identify fake cryptocurrency?
We hope that it helps you out!