How secure is the Bitcoin Blockchain?

How secure is the Bitcoin Blockchain?

Bitcoin is the world's first cryptocurrency that has never been hacked ever since its launch in 2009.

With Bitcoin serving people with peer-to-peer (P2P) since 2009, it has become the top cryptocurrency in the world today with over $733 billion market capitalization.

Ever since it was launched, it has become a blockchain platform that has never been hacked, many might have tried unsuccessfully though.

It was designed by one or more Bitcoin developers to run as a decentralized system. In addition to being the most secured digital system in the world and the most reliable monetary system ever invented, Bitcoin technology is relatively new.

So far, there has never been a counterfeit Bitcoin found in the blockchain since both the miners and the Bitcoin network constantly communicate with one another and confirm transactions.

Not a single transaction is accepted or added to the blockchain without all the nodes confirming it. As the nodes are spread across the world, they cannot be manipulated. These are the networks of computers that are based in various countries that run Bitcoin software and verify each and every transaction.

In light of the limited supply of Bitcoins, close to 19 million have already been mined, and close to 2 million are still to be mined, making it impossible for anyone to create fake Bitcoins since new Bitcoins can only be created through mining.

Miners that run Bitcoin software try to solve mathematical problems and get rewarded for their work, as there are over 200,000 nodes that run Bitcoin, there is an intense competition to get the rewards.

As over 200,000 nodes compete to add a block to the Bitcoin blockchain, the nodes that solve it first get rewarded. When Bitcoin started its operation 50 Bitcoin was given as rewards for adding a block, which has come down to 25 Bitcoin in 2016. In 2020, miners will get 12.5 Bitcoin for adding a block, and currently, it is 6.25 Bitcoin per block, which is expected to be just 3.125 in 2024

This halving process has made Bitcoin the most secure cryptocurrency as demand for holding Bitcoin has also increased by many folds. 

Today, each and every crypto holder wants to hold a minimum of 1 Bitcoin, which is today costing around $40,000.

The price of Bitcoin has gone through many roller coaster rides, but every time it has proved why it is the best cryptocurrency in the world.

Bitcoin only works if it is connected to the internet, so it can never be down, as somewhere in the world somebody is connected to the internet.

Yet many contend that if hackers shut down the internet, this would not be possible, as hackers can compromise internet connections of one or two nations, maybe 10, but not 190 nations that are today connected to the internet.

Then comes an argument, what if all the nodes decide to shut down their computers at one time, this also cannot happen, as to hack a system, you need to own 51% of nodes. But here too, it is impossible to identify all the nodes and from where they are running. Hackers cannot identify the nodes making it impossible to compromise the blockchain.

Another argument is that if the government takes over the blockchain network. This Bitcoin system was designed to operate in a decentralized model, so the government cannot take control of this. Regardless of the country in which you live, your government could control computers regionally, but no government has the right to control nodes in another country.

Wallets and exchanges may have lost some Bitcoins due to hacking, but these are stolen from third parties, not from the blockchain. Hackers were successful, as they were able to get into the system of the crypto exchanges or hot wallet that was not properly secured, not a single instance has come to light the Bitcoin blockchain was hacked.

As Bitcoin uses a digital signature algorithm called Elliptic Curve Digital Signature Algorithm (ECDSA), it is impossible to crack this and even if the transaction is rejected, a digital signature is generated. Whether the transaction is accepted or rejected, a digital signature is always generated, so that it can be verified on the blockchain system by anyone.

All these features make Bitcoin the most secure cryptocurrency in the world today with massive adoption. Today, even institutional investors want to hold Bitcoin understanding its importance in the years to come.

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Disclaimer: This article is for informational purposes only. The information does not constitute an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Klever.Finance does not provide financial, tax, legal, or accounting advice. There is no responsibility on the part of the company or the author for any loss or damage arising from or related to the use of or reliance on any content, goods or services mentioned in this article.

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