Blockchain digitizes and distributes data records over a network. With blockchain, transaction verification is no longer dependent on a single centralized institution. No single point of failure – or corruption – is not only an inherent security benefit of a decentralized structural paradigm, but also a fundamental philosophical and business driver.
Blockchain technology consists of several integrated security functions such as cryptography, software-mediated contracts and identity controls. The technology offers significant levels of privacy and integrity by enabling a distributed method of verifying access, authenticating transaction records, and maintaining privacy.
However, despite these security improvements, the blockchain market has been fraught with security concerns.
Wherever there is money, there are hackers, and blockchain networks are both spreading. In 2021, decentralized finance-related violations accounted for 76% of all major hacks, with over $ 1 billion lost in the third quarter …