What are Blockchain Credentials and How Do
A blockchain is a collection of records known as blocks that are used to store information in a public and sequential sequence. Each block comprises a cryptographic hash of the preceding block, a timestamp, and transactional information in the form of a Merkle tree. The data is encrypted using cryptographic techniques to ensure that the user’s personal information is protected and that data cannot be manipulated.
Unlike conventional financial institutions, data on a Blockchain technology is not regulated by a centralized authority. The data is maintained by the network’s participants, who also have the democratic ability to approve each transaction that can occur on a Blockchain network.
On the other hand, a digital credential is a virtual equivalent of a paper-based credential. Digital credentials that are issued and maintained digitally and underpinned by blockchain technology are a match made in heaven for anyone concerned about data privacy.
How Do They Work?
Blockchain technology uses a public and private cryptographic key pair, with each node or individual having both of these keys, which are used to establish a digital signature. In a peer-to-peer network, each transaction is authorized by the owner’s digital signature. All of these permitted transactions, along with a timestamp, are maintained in a system known as digital ledger.
The use of Blockchain-based digital credentials allows users to instantaneously authenticate, share information digitally, and is unchangeable and interoperable. Because these credentials are based on distributed ledgers, they are more secure. For example, if someone goes to validate a credential, they can cross-check the credentials legitimacy by comparing the stored series of numbers with what the authorization data generates presently.
How Secure is Blockchain Technology:
Blockchain technology has the potential to be dependable, safe, trustworthy, and confidential. Instead of a central authority, the system works by adding transactions to the ledger that are authenticated by the larger user community. Blockchain security employs assurance services and cybersecurity frameworks to protect a blockchain network from cybersecurity threats. For fundamental security, blockchain technology is built on encryption, consensus, and decentralisation principles.
Although it is difficult to achieve both security and privacy in a conventional data system, blockchain can do this by enabling secrecy through “public key architecture,” which protects against hostile efforts to alter data, and by keeping the size of a ledger constant. Without a question, blockchain technology will transform the way information is transferred and kept.