How does blockchain enhance security in digital transactions?

How does blockchain enhance security in digital transactions?

Blockchain enhances security by providing a decentralized ledger that is immutable and transparent, making it difficult to alter transaction data.

What are the key features of blockchain that contribute to its security?

Key features include decentralization, cryptographic hashing, consensus mechanisms, and transparency, all of which protect against fraud.

Can you explain how cryptographic hashing works in blockchain?

Cryptographic hashing transforms transaction data into a fixed-size string of characters, ensuring that even a small change in input alters the output significantly.

What are some real-world applications of blockchain security?

Real-world applications include secure financial transactions, supply chain management, identity verification, and healthcare data security.

Are there any vulnerabilities in blockchain technology?

While blockchain is secure, vulnerabilities can arise from smart contracts, human error, and potential 51% attacks in some networks.