Blockchain and its security mechanism

Blockchain technology is mainly used for virtual currency, and the main example is bitcoin system. Blockchain is a distributed database, which consists of continuous blocks and contains a variety of information. (Multiple nodes back up the same data and maintain continuous transaction files. There is no manager in the blockchain and there is no center at all. If the center conducts transactions, the biggest concern is the security of the transactions. Today's editor introduces blockchain and its security mechanism.

Characteristics of centralized and distributed transactions

Blockchain is a distributed database with centralized characteristics. The following example is a comparison between centralized and distributed financial systems. According to the traditional financial mechanism, red, yellow and blue must be traded through banks. However, after adopting the distributed blockchain model, there is no need to conduct independent transactions through banks.

(1) centralized model:

1) Conduct transactions through financial institutions such as banks.

2) The bank manages balance, account number and other information in a unified way.

3) Need to open an account in advance and get an ID card.

4) Security depends on banks, and fraud needs to be investigated through various laws and regulations.

(2) Distribution mode:

1) to trade with users on P2P network.

2) The address is managed by the participants themselves, and the balance is managed by the distributed ledger shared by the whole world.

3) Need to install software and connect to P2P network.