Before talking about the application of Blockchain in cyber security and cryptocurrency, it is important to first understand blockchain in supply chain management.
Blockchain technology in supply chain management allows complete traceability, meaning the condition of the product at each step in supply can be tracked. The transactions through blockchain technology can be tracked very securely.
Another benefit that is offered by the blockchain in supply chain management is that there is a single record policy, meaning there is a single director in the complete supply chain. This helps in cost reduction as multiple records are not required to be maintained in the entire chain. This also reduces the probability of errors and eliminates any human intervention.
Blockchain & Cyber Security
Cyber threats are one of the biggest threats that people have to witness in today’s progressive times. Blockchain can be very effective in providing cyber security, especially in financial services. All financial institutions are centralized, which makes them vulnerable to cyber threats.
Blockchain technology ensures the security and integrity of data. It also helps in improving security across several different sectors. Decentralized networks and the implementation of cryptography helps in the protection of data in blockchain technology. It will also ensure that all the information stored is completely secure and cannot be altered. It will enable a transaction to be carried out more swiftly and at very low transaction fees.
Distributed ledger on the blockchain prevents hackers from tampering with the data. If at one node, data gets compromised, it will have no effect, as all the other nodes will have original data stored. MasterCard has implemented its blockchain project, where blockchain technology is being used by MasterCard for sending and receiving money.
Cryptocurrency (Bitcoin)
Blockchain is used as a chain of blocks created and linked one after another in a chain. Blockchain is used to process and store data related to transactions on a Bitcoin network. The process of adding new transaction information to a ledger on the Bitcoin network is known as mining. The cryptographic hash function that is used to secure the data on the Bitcoin network is Secure Hash Algorithm-2 (SHA-2).
The SHA-2 helps in determining the integrity of data by comparing the output hash value to the hash value that is already known. Bitcoin was launched to provide a platform to simplify transactions by eliminating any controlling central authority. To accomplish this objective Bitcoin implemented a peer-to-peer network.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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