By now, you should have a good idea of what the blockchain is and how it helps to improve the world. But you may still have many questions.
One of them involves the possibility of hacking a blockchain. Is that even possible? And if yes, how does it happen and what is the result?
What is a blockchain hack?
The word hack is very common in the context of cryptocurrency. Hacking a blockchain refer to the act of someone trying to perform a 51% attack, by controlling more than 51% of the total amount of nodes participating in the network.
Be doing so, the hacker is theoretically able to reverse (rollback) transactions.
But is this process possible? And if so, how realistic is it?
Can blockchain be hacked?
Theoretically, it is possible to hack a blockchain. However, it would be an extremely costly and difficult venture. Blockchain networks are built with unique cryptographic elements that are unique to each transaction block. They also use consensus to validate the eligibility of a transaction.
What happens to my private information when there is a blockchain hack?
In the context of cryptocurrencies and blockchain technology, a data breach in the form of private information exposure does not apply. All the private information stored on the blockchain is already open to the public thanks to the setup of the distributed ledger.
This element of transparency is considered to be the biggest benefit of blockchain technology but simultaneously also a concern for privacy reasons.
If a hacker wishes to reveal personal information linked to the wallet addresses of a blockchain network, he would need to hack into the database of a large cryptocurrency exchange, such as Binance or Coinbase.