No one has been able to hack Bitcoin because of its advanced blockchain technology. Yes, there have been many instances of theft, but mostly because of the lack of the precaution by the owners, problems with two-way authentication and other similar issues. So, how does blockchain prevent people from stealing your assets? A broader consensus is needed for a block to get created and closed and every transaction has to be validated. Every block on its end has a link to another block. Essentially, if you want to alter past transactions there must be consent from the individuals within the block for that transaction and every transaction that followed it.

Blockchain technology was invented solely for the purpose of creating the Bitcoin network but it was found useful in other fields of technology and other cryptocurrencies as well. There have been several attempts at creating digital currencies in the past but the largest problem has always been creating a mechanism that would stop people from spending their assets more than once, also known as double-spending. Blockchain technology resolved that issue as well since your private key that leads to your coin simply isn’t enough to allow spending.

Because there must be a larger consensus by the people within a block to validate a transaction no one’s been able to hack Bitcoin until now. Instead of hacking a person, you must hack an entire network and all of the assets owned by the individuals within a block. Still, blockchain technology has its downsides, especially when it comes to the Bitcoin. The transaction time of Bitcoin is really high, and so is its block time. In comparison to the Ethereum protocol, there is a great difference in transaction times and block times. This is because Ethereum is essentially an advanced version of an online supercomputer. In order for Bitcoin to achieve its full potential, the entire process must be much faster.

Nevertheless, do one should not be under the impression that there is no way to get your cryptocurrency stolen. The best way to keep your assets safe is to hold them in a hardware wallet, which is also known as cold storage. Never leave your Bitcoin or any other asset on the exchange, since that is the easiest way to lose your money.

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Posted by Min Park

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