Specialized American researchers in information security warned that cryptographic digital currencies could be more dangerous than people expect and subject to widespread manipulation, after studying the characteristics and specifications of the “Blockchain” networks on which cryptocurrency mining depends.
According to a report published by the British newspaper “Daily Mail”, “Blockchain” networks are widely considered “decentralized” because no person or organization can control them, but the new report overturns this idea and reflects the popular idea about this technology.
The company (Trail of Bits), a New York-based information security company, is studying the basic characteristics of blockchain networks and the cybersecurity risks associated with them.
The company’s researchers found that there are “unintended centers” in the blockchain that can make them vulnerable to corruption and possible theft of funds.
The company said the risks inherent in blockchain and cryptocurrency have been misrepresented and often ignored – or even ridiculed – by those “looking for money”.
All cryptocurrencies, including Bitcoin, use an open ledger that records transactions in code.
The blockchain allows you to record and examine all record of transaction, making them “immutable”.
Blockchain also tracks all cryptocurrency transactions on a decentralized “public ledger” in a chain of blocks, allowing users to keep a record of payments without the need for a central bank to record it.
But the new report from the US firm, commissioned by the Defense Advanced Research Projects Agency, claims that these chains are by no means truly decentralized.
According to the company, the lack of true decentralization can lead to the manipulation of cryptocurrencies by people, companies or even governments.
“It can make it impossible for other people to convert your cryptocurrency and it can make it impossible for you to spend it,” said CEO Dan Guido.
This has real practical implications in the real world; For example, if Russia wanted to prevent people from donating to Ukraine, it could do so, according to the Daily Mail.
THE computer in the network, called “nodes”, they check the details of the operation to make sure they are correct and to authenticate the transactions.
This allows users to keep a record of payments without the need for a central bank or other primary authority to record it.
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