Bitcoin remains the most popular cryptocurrency, and its security features are just one of the reasons that the pioneering crypto is seeing greater adoption and acceptance than alternatives.
Crypto investors have seen digital assets being integrated into many different industries, with real estate, online retailers, travel companies, and gambling operators all capitalizing on new consumer trends by adapting their payment systems to accept a wider variety of payment methods.
Online gambling expert Nick Pappas cites safety and security as a key factor for consumers exploring new Bitcoin casino operators. Premium Bitcoin gambling sites provide two-factor authentication and SSL encryption.
The transparency of Bitcoin is also a benefit for real estate investments as it provides peace of mind to buyers who can trace the ownership and prior transactions through its immutable ledger.
With so many crypto options now on the market, many investors are exploring security features to see which digital assets best suit their needs.
How Bitcoin Works
Traditional financial systems rely on a central authority to maintain transactions and security. Bitcoin is a decentralized alternative that records all transactions on the blockchain and is operated by organizations and individuals who run a network of nodes around the world.
Is Bitcoin One of the Most Secure Crypto Networks?
Blockchain security is integral to the success of cryptocurrencies, and Bitcoin’s ability to provide users with one of the most secure networks has helped with its long-term success and growth.
Bitcoin Security
Bitcoin relies on four main factors that contribute to the safety of the network. These factors work together to create a system that makes it extremely difficult for cybercriminals to attack.
Transaction Hashing
The “crypto” in cryptocurrency comes from the technique used to encrypt transactions known as cryptography. A unique code or “hash” is created using numbers and letters and results in a secret code that can only be unlocked by using a specific key.
This technique allows users to enjoy greater security, knowing that even transactions that are intercepted can’t be altered without the key. Users are equipped with unique private and public keys that provide the destination and access to crypto funds. As long as users keep their key safe they will have control over their cryptocurrencies.
As the first and largest cryptocurrency on the market, Bitcoin uses a state-of-the-art hash algorithm to provide robust security.
PoW (Proof of Work)
Proof of work is when miners solve grouped transactions that use cryptographic technology to create a complex puzzle system. Miners rely on powerful computer systems to resolve these puzzles and they earn transaction fees and Bitcoin, with the end goal to confirm the transactions in the block.
Block Confirmations
Additional block confirmations help to secure transactions, with hackers having a finite amount of time to reverse transactions before another block is added to the blockchain. When this is added, a hacker would then have to reverse both blocks, this would continue as more blocks are added.
It takes around ten minutes for blocks to be confirmed, and with enough blocks in place, it becomes mathematically impossible for cybercriminals to steal cryptocurrencies through network attacks.
Game Theory
Game theory is a concept created by Nobel Prize for Economics winner John Nash that sees individuals achieve optimal personal outcomes by doing what is best for everyone else who is involved.
In this case, the time and resources required to hack the Bitcoin network make it a profligate use of time. By applying the same level of resources to mining Bitcoin the person would enjoy greater profits and help the group.
The solid defenses in place on the Bitcoin system act as a deterrent to potential cybercriminals who would have to expend a lot of time and energy into a pursuit that would likely fail.
