How Secure Are Bitcoin Transactions?
Bitcoin and blockchain transaction security are centered around two keys, a public and private key.
The public key is a series of characters (letters and numbers) that is used to identify a specific user with an exchange. Prior to someone being able to use the public key to identify him/herself with an exchange and conduct a Bitcoin transaction, the senders’ account needs to be confirmed. This ensures that the user has enough Bitcoins in his/her wallet to pay the Bitcoin transaction fee.
Once this first confirmation is done, the exchange being used checks the transaction in the blockchain. Think of the blockchain as a general ledger showed in a look-through glass layer. All Bitcoin users can see however they edit it.
This first check from the blockchain from the exchange keeps anybody from attempting to send the same Bitcoin to two unique individuals simultaneously. On the off chance that anybody involves in this kind of process it is termed as twofold spending. Having the two diverse keys stops this from happening.
The end user at that point utilizes their private key to open the exchange, once it has been checked. The Bitcoin at that point gets stored in their Wallet. A wallet is basically an online statement.
Since the framework utilizes two keys in all exchanges in the system, it can be tracked easily. The procedure of regular checking happens multiple times through the process until the recipient stores the Bitcoin.
These exchanges are accessible in the Blockchain, each exchange at any point made is represented here. Furthermore, anybody can see it if they wish to.
How do they create the Blockchain?
I know you will be eager to know how the Blockchain is created. Let’s see it here. As we saw above it takes a few verifications for every exchange to continue. As of now the present number of verification required is six.
Prior to an exchange goes into the Blockchain, a new block is framed first. The foremost step in this procedure is to confirm that the individual sending the Bitcoin has currency in their wallet.
From this step, the process gets complicated; however, we will attempt to keep it as straightforward as that for you.
To frame a block, hash creation process has to occur. Every time, the key is verified a small node will be attached to the block. Hence, the initial framed block will be growing longer and longer as the verification occurs.
As this is altogether done by means of an algorithmic program, zeros are included towards the start of the block. Once verification occurs, more zeros are included in the block. The longest block is considered as a genuine block. When the verification happens six times the block goes into the BlockChain. A timestamp will be added once the transaction enters the Blockchain. This is the way you can see every transaction without any hassle. No transaction can be removed from Blockchain and it will keep on growing in size.