Blockchain is not something new as it has been around since 1991. What started as a chain of blocks secured by cryptography has come a long way. It has been advancing in the last 31 years and has established itself as an invention humans need to perform better in the years to come. It was linked with currency in its infancy but in 2014, its potential to make transactions secure was explored.
The era of Blockchain stepping up to make online transactions secure for everyone is no less than a golden time period. However, its story does not end here. A lot of experts in the industry of finance and crypto believe that the world is going to experience something far better than Blockchain 2.0 in 2022. What is it that awaits you?
What is Blockchain?
Before the advent of Blockchain, humans tried multiple ways to secure confidential information but failed. Blockchain gave them new hope and a way to keep their information away from the hands of unauthorized people. The structure of the Blockchain is designed on its primary concept of having a chain of blocks. In terms of computers, it is a distributed database that connects various computers over a single network. It is capable of storing a chain of information in the most secure way by encoding it.
The information is collected in the form of groups. Each block is opened for the information and when full, it is sealed and connected to the previous block. The same process is repeated over and over again until all of the information is saved in the blocks and connected.
The most common use of Blockchain is in the form of a database capable of storing information in a digital format. It plays a vital role in cryptocurrencies like Bitcoin. It ensures the security of the data by decentralizing the record of transactions. This decentralized control of the information makes sure that if one control is compromised, the hacker does not get access to the complete information rather to just one block.
The Crux of Blockchain Security
Security is indeed a huge concern for people today. Even though we have new technologies surfacing every day trying to provide ultimate security, hackers are working around the clock to break these protocols as well. So, whenever someone comes in telling you that Blockchain is 100% secure, you should be ready with questions to know the way it is done. Let’s get into the crux of Blockchain’s security together.
How Does Blockchain Make Transactions Secure?
Since the information is saved in a chain of blocks where each block is connected with the block before and after it, it is difficult for the hacker to gain access to all the blocks at the same time. Moreover, in case the hackers manage to access information of one block, they can’t misuse the data captured as it needs to be connected with information of other blocks to be used. The hacker can’t tamper with the data as well as the change will easily be detected.
Blockchain makes use of cryptography to add an extra layer of security. This procedure uses a key for encoding the data and the same key is needed for the decoding of the data as well. Every person on the network making a transaction has his own private key linked to the transaction. This key can be regarded as a personal digital signature. In case a hacker gets to alter the record, this private key or signature becomes invalid and the people on the network will be informed right away. This early notification helps alert everyone on the network hence, preventing further damage.
The network with Blockchain deployment is distributed and decentralized which means it is updated after every interval and is synced overall. Since it is distributed, it will take tons of computing power for a hacker to gain access to every block and corrupt those all in one go. The Blockchain network can be expanded as much as desired to make it more tamper-resistant.
Public Blockchain vs Private Blockchain
We have two main types of Blockchain, public and private, making the digital world a secure place. Public Blockchains, as the name suggests, involves computers using the public internet for the validation of a transaction. This Blockchain type operates by bundling the transactions into blocks to add to a ledger.
On the other hand, private Blockchain is the category that deals in private connections. It only allows a few registered organizations to join the network to perform various transactions. You can also call these member-only blockchains.
Now, that is not the only difference between the two categories. Both categories also save the data moving through the network in different places as well and provide access to different people. This clearly tells that private blockchain types are far better when it comes to serious security. Since a public blockchain gives access to the data to anyone present on the public network, it is not suitable for an enterprise.
Also, a public blockchain is designed in a way that allows the members to be anonymous whereas a private blockchain makes it mandatory for a member to confirm membership before accessing any privileges. This is another reason that makes private blockchains far safer than public ones.
Moreover, a private blockchain forces every member to verify the transaction before making a final move, and the identity of the member is verified before the transaction is done.
This allows the appropriate participants to access the data of transactions and maintains the permissions of the transaction ledger well. There are still a few issues with this method, including threats from insiders, but many of them can be solved with a highly secure infrastructure.
Blockchain And Its Link With The Metaverse
Since the launch of Metaverse, every industry is trying its best to step into this new realm as soon as possible. A lot of companies have even started coming up with ideas and developing around them to provide their customers in the new world. The future of the Metaverse is finally out of debate as the industry experts believe that it is here to stay. Apart from all the other industries booming on it, one industry that is going to gain a lot of hype is the finance industry.
With every new technology, comes new loopholes that can be utilized by hackers to harm people. The advent of Metaverse is not different in any way. Since companies will be providing their services online through Metaverse, they will also be accepting online payments. This has already posed multiple threats to the safety of online transactions. Where the consumers are glad about having new technology, they are questioning its safety and security in managing the records, essential information, and most importantly, online transactions.
This is where Blockchain steps in to calm the world and give the people the security they desire. Blockchain has already been working in providing much security to people by offering them various solutions and according to market professionals, it is ready to do the same for Metaverse as well.
Benefits of Blockchain in Metaverse
We are aware that the experts of Blockchain are already working on cracking the ways to provide ultimate security to the consumers of Metaverse. However, there are going to be some challenges. Will Blockchain be applicable to Metaverse with its private and public methods? How secure will the Blockchain solutions be in securing the consumers? Well, these questions will only be answered with the passage of time. Till then, we can learn what benefits Blockchain has to offer us.
Immutable and Complete Security
In today’s world where everyone is connected to everyone through digital platforms, it can be difficult to provide ultimate security. Data breaches are reported on a regular basis leaving people to feel unsafe on the internet. However, it does not mean that they must stop being a part of the digital world. It requires the platforms used for communication to be based on a reliable and secure system.
While some people are still doubtful about the complete security provided by Blockchain, the admirers are proud to share that it is immutable. Blockchain and the platforms introduced by it are immutable and unhackable making them perfect to be used in today’s digital world. Blockchain confirms information instantaneously and makes transactions cryptographically protected and secured.
Instant Transfer of Money
The world does not like to wait anymore and this is why digital platforms are becoming famous every day. Blockchain merged with crypto assets ensures that the transactions are performed at the speed of the light whenever desired and required by the users. This makes the people feel more connected as the transactions happen as fast as if they are happening in person.
Moreover, a fast rate of the transaction helps people have more trust in the online platforms. They feel less sceptical about the money they are spending and don’t have to stick to their phones to make sure the person received the money.
Transactions with Cryptocurrency
Cryptocurrency is gaining fame and a lot of people are seen accepting it with open arms. Apart from performing transactions of cash online, people have been using cryptocurrency recently. This entire virtual transaction requires an additional layer of safety and security to ensure that hackers don’t get in and disrupt the whole system.
Blockchain has been making these crypto-transactions secure by providing various gateways. Visa V +1.1%, Mastercard MA +0.7%, and PayPal are implementing some of the solutions provided by Blockchain. With the growth of cryptocurrencies, the implementation and the number of solutions provided by Blockchain are only going to increase.
Offers Total Autonomy
Blockchain is famous for providing security but that is not all it offers. It offers an autonomous presence to the consumers on the web as well. The users of the digital world are given free will while Blockchain ensures that it remains with the consumer solely. The information of a user and the transactions performed by him are kept in the record, however, that record is not shared with anyone without the consent of the user. This makes Blockchain a safety solution that is loved by everyone all over the globe.
Blockchain in Metaverse – Some Possible Scenarios
Security has always been a huge question for everyone present on digital platforms. Even the online platforms and mobile applications built by various software houses today ensure that users are given proper security. Multiple software houses use Blockchain and follow safety practices made around it to deliver a secure platform or application. Petroleum, Trip Record, and Donaco are some mobile apps that belong to different niches but are famous for providing a secure presence to their users.
Since we are aware that Metaverse is here to stay and transform the world, it is not a shock that Blockchain will be seen in action as well. According to Goldman Sachs, Blockchain is going to be the heart of the Metaverse given that it would be a virtual universe where people can work, have fun, buy and sell, socialize and do much more in the form of avatars. We have already discussed the way Blockchain ensures the safety and autonomy of the users online. Here are some of the ways Blockchain will be seen interacting with Metaverse:
In the future world of Metaverse, Blockchain will help In-game assets become more like non-fungible tokens and NFTs. The users will be able to buy, earn and sell these in-game assets. VR games would become powerful enough to allow users to earn real money and use it later. Blockchain will ensure that the users can perform transactions free of any stress. Moreover, it will keep the assets undamaged even if the user decides to quit the game, or the game is deleted.
Real Estate Renewal
Real estate has a huge chance of growing in Metaverse and if you are wondering the way Blockchain will secure it, we have a few ideas to share. Blockchain will take care that all the regulations and rules given by the government are followed properly with full transparency and zero unwanted data tampering. It will also keep the record of the industry immutable record unless and until it is altered by the authorized person.
Authentic Ownership Credits
Metaverse is all about letting people do what was thought impossible once. However, it will ensure that the right people get credit for their work. Blockchain will offer ownership security to the users by introducing digital proofs of ownership for all the assets connected to users in the metaverse. They can have a crypto wallet linked to their name and have private keys to prove ownership of assets or currency in the wallet.
New Authentication Ways
Metaverse comes with a promise of an entirely new identity for the users. With changing identities, things can become difficult to handle. Blockchain will ensure to keep track of these identities. It will enable the users’ identities to act as a social security number that is always unique. Blockchain will record age, features of appearance, online activity log, and other unique details of a user will be stored for giving transparency in the metaverse.
Nobody wants an unauthorized person to access their data and assets and this has always made people ask for an extra layer of security on the digital platforms. With the advent of Metaverse, the demand for security layers is only going to increase. The industry experts are already preparing for offering secure and safe ways of transactions and overall existing on the Metaverse.
Blockchain has proved itself to be the most successful solution when it comes to offering 360 degree security 24/7. While some people are trying to come up with new ways of providing security to people in the Metaverse, most of the companies are working on strengthening existing Blockchain solutions for the future to come.
From the possible scenarios of Metaverse discussed, it is guaranteed that Blockchain is all set to take over the challenges and people can rely on it for protection of their data. While the world is still wondering about the way things will operate in Metaverse, one thing is sure that it will be a secure virtual world to be a part of.
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