In this tutorial you will learn about Bitcoin – Mitigating Attacks step by step. So without much to do let’s get started.
In this tutorial, you will learn-
What is Blockchain?
A blockchain is a continuously developing ledger which continues a permanent record of all the transactions which have taken place in a secure, chronological, and immutable way.
Let’s breakdown the definition,
o Ledger: It is a record this is constantly growing.
O Permanent: It means once the transaction is going internal a blockchain, you can put up it completely within the ledger.
O Secure: Blockchain placed information in a secure way. It uses very advanced cryptography to ensure that the data is locked inside the blockchain.
O Chronological: Chronological means each transaction happens after the previous one.
O Immutable: It method as you construct all the transaction onto the blockchain, this ledger can never be changed.
A blockchain is a chain of blocks which include records. Each block records all of the latest transactions, and as soon as finished goes into the blockchain as a permanent database. Each time a block gets finished, a brand new block is generated.
Note: A blockchain may be used for the secure transfer of money, property, contracts, and so forth. Without requiring a third-party intermediary like bank or government. Blockchain is a software protocol, but it couldn’t be run without the Internet (like SMTP used in email).
Bitcoin – Mitigating Attacks
We will discuss three different types of probable attacks in the Bitcoin system−
As an attacker, you may send the identical coin to different vendors in speedy succession, probable by using two different machines. If the vendors do not wait for the block confirmation before delivering the goods, they may very soon realize that the transaction was rejected at some point of the mining process. The technique to this form of attack is that the vendor must wait at least one block confirmation before sending out the goods.
In this case, the attacker is the miner. The miner mines a block together with his transaction and does not release it in the system. He now uses the same coins in a 2nd transaction and then releases the pre-mined block. Obviously, the second transaction would be rejected ultimately by other miners, but this will take some time. To mitigate this risk, the seller should wait for at the least six block confirmations before releasing the goods.
The 51% Attack
In this kind of attack, we come up you with an impractical assumption that somebody owns 51% of the computing energy of the network. The attacker on this form of attack mines a private blockchain where he double-spends the coins.
As he owns most of the people of computing power, he’s guaranteed that his private blockchain at some point of time would be longer than the chain of “honest” network. He then releases his private blockchain within the system making all of the transactions in advance recorded inside the honest blockchain to be invalid.
This kind of attack is fictitious as it’s very expensive to acquire computing power which equals or exceeds 51% of the computing power of the entire network.
This is about Bitcoin – Mitigating Attacks and we really hope that you have learned something from this tutorial and also share your opinion about this tutorial. What do you think about it and if you think that this tutorial will help some of your friends then do share this tutorial with them.