Blockchain and its security
Understanding the revolutionary security of blockchain technology
What is blockchain?
In its purest form, blockchain is a type of data infrastructure that consists of a chain of blocks that allow the validation and verification of information. In the physical world, the closest analogy to a blockchain network would be like an accounting book, except blockchain is digital and more secure, transparent and decentralized.
When did Blockchain first appear?
Crypto and blockchain came into the spotlight in 2008, in an article published by Satoshi Nakamoto (pseudonym of bitcoin creator). It was thanks to blockchain that Bitcoin’s creation is possible, as Bitcoin transactions are validated and verified on a blockchain network.
Naturally, this same technology expanded to other types of crypto assets; today, it is used to validate any type of information in a network. Therefore, the technology is not exclusive to cryptocurrencies, but it is strongly associated with it.
Blockchain and Bitcoin are the same thing?
No. Bitcoin is the cryptocurrency and blockchain is the technology that guarantees the security and verification of the transactions. This is a typical point of confusion for people new to the cryptoverse, as it was through Bitcoin that blockchain became well-known.
How does blockchain work?
Imagine that you buy an MCO2 Token and decide to sell it on an exchange like ProBit. Your transaction will be represented by a block, which will be directly linked to many other blocks (which represent other transactions). Each block contains information, such as the date and time of the transaction, and is given a hash, which functions as a fingerprint.
In addition to their individual information, each block is linked to the previous block, which has its own hash, thus forming this chain of blocks. This means that, in practice, no block can be accessed individually, since they are in a chain and any changes, in that sequence, can be easily noticed and defended by the system.
Another point that makes the network secure is the fact that it is fully decentralized. Unlike closed networks in an organization or a central government, blockchain is a decentralized network, where each miner (a person who works to keep this information chain safe) has a copy of the entire information chain.
A hacker threat is ineffective against the technology, as it would have to be carried out on at least more than 50% of the network, which, as we said, is decentralized. Any new block that is added to the network goes through the validation process of the miners, who, by simple majority, validate (or not) the information.
It could be compared to an accounting book, but technological, gigantic and transparent to the whole world. This also does not mean that everyone will be able to see your transaction data.
What is transparent are the checks that validate it, with information such as date and time, however, personal data, like someone’s address, does not appear on the blockchain. The scanned blocks are also encrypted, which makes them tamper-proof. They cannot be corrupted, altered or deleted.
For these reasons, blockchain technology is being used in many use cases different from bitcoin. It is this technology that allows the security of transactions of many crypto assets worldwide, including the MCO2 Token, the Moss carbon credit.
Recently, the security of our MCO2 Token was audited by Certik, a company specializing in blockchain security. Certik was a pioneer in using the formal verification process in smart contracts and blockchains.
This means that our token is proven to be safe and free from vulnerabilities.
If you want to know more about carbon credits and how to buy your MCO2, click here to see the step-by-step guide.
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