Why is data in blockchain tamper-proof (Why can’t blockchain be tampered with)?

Why is data in blockchain tamper-proof? This article will delve into the issues of data protection and verifiability in blockchain.

First, we need to understand a concept: any form of value can be stored on a blockchain network. Unlike traditional electronic record-keeping methods, blockchain is not limited to a single asset or digital credential. Every transaction on the blockchain exists in the form of a “public ledger” and is secured through distributed consensus.

Second, we must consider the complexity and instability of blockchain technology. To ensure the secure and reliable operation of the blockchain system and provide efficient functionality, blockchain technology introduces a series of new features that make it highly secure and cost-effective. However, due to its decentralized nature, blockchain also presents solutions with high privacy requirements. Each person in the blockchain operates independently from other institutions and should have their own identity. However, in reality, this is not the case, as all participants can view the ownership status of any cryptocurrency they hold and the tokens they use. Therefore, we believe that blockchain-based technology is highly suitable for creating these new financial services.

Finally, we will discuss how to achieve this goal and address the issue faced by the blockchain industry – whether data is used for criminal activities.

For blockchain, it is a completely open network that allows users to access internet information without affecting their operations. However, if blockchain technology is used to access personal information, it cannot be stored in a public location; instead, it provides a more efficient way to manage and maintain data.

The main advantage of blockchain is its elimination of intermediaries and middlemen, avoiding the assumption of trust. Additionally, when people want to obtain certain crucial information from a third party, they cannot easily change it. Therefore, everyone in the blockchain has a unique wallet address that contains detailed information about all such accounts, and there is no central entity.

As more and more projects explore the possibilities of blockchain, developers have realized this, although many projects are still in the experimental stage. For example, the Blockchain.com team has been studying Bitcoin and blockchain protocols. According to Alex Mashinsky, CEO of Blockchain.com, “There is currently no more news about the industry.”

The following is a list of examples:

1. Transactions in blockchain can be completed in a permissionless environment.

2. The block size limit of blockchain can be controlled by any specific node.

3. Smart contracts do not rely on any external entity but are composed of multiple nodes in a multiparty computation.

4. Smart contracts can be enforced through code.

Why can’t blockchain be tampered with?

Blockchain is essentially a distributed ledger that does not rely on any single central authority. But we can use a concept called “immutability”, which in blockchain is known as programmable smart contracts. This means that as long as you put your digital signature on the chain, it proves that you have the authority to carry out transactions, and no one will change its code for specific reasons. Why is this so?

From an economic perspective:

When a person has full control over all their data, the person who obtains the information through internet computing no longer possesses their personal information. For them, if the “if” data is accessible to others, it will not generate new value claims (such as: I cannot see this data), which means that people only need to trust that they have done so to know their true situation. Furthermore, if the “if” information is stolen or deleted by others, it will result in the loss of all functionality. “So, if you want to protect privacy, you can choose to remove certain things.” This is why the problem often requires mathematical principles. Many people may think that blockchain technology itself is designed to solve the trust problem rather than designing a set of algorithm systems and tools for everyone to ensure transparency, openness, and immutability. In fact, blockchain is not about getting everyone involved.

First, let’s take a look at what a consensus mechanism is. Since the consensus mechanism is a cryptographic protocol (a new type of computing), every important event or activity in networks like Bitcoin may change, such as block reward halving, hacking, and other major losses. Additionally, Bitcoin has strong anonymity and most nodes do not support Bitcoin addresses, which results in incomplete transaction records in the Bitcoin network, and even falsified transactions. There are also some security vulnerabilities that cannot be easily compromised.

Next, how to prevent users from maliciously manipulating transaction records on the network. Ethereum has emerged as an application for this purpose, but these platforms do not seem to provide a completely consistent method to prevent this trend. However, some people believe that even well-functioning and heavily regulated companies will emulate the practices of the Ethereum Foundation to reduce user risks, as the Ethereum community has always maintained an open attitude. Of course, there are many misunderstandings here. For example, if a project finds that there is a large amount of unspent funds in its internal account, it is likely that this user is an employee of the project. Should they stop working?

Finally, let’s get back to the point. Do you have any doubts: since everyone wants to use the Ethereum ecosystem to build their own infrastructure services, is it possible to develop new applications above the public interest? Why worry that your business model will be subject to fraud and other financial crimes?