Data Security Based on Blockchain Digital Currency

Abstract

Blockchain is a distributed shared ledger and database. Because of its unforgeable, traceable, open, and transparent, and collective maintenance features, it has laid a solid foundation of “trust”. At the same time, the blockchain also brings hidden dangers of data security. How to protect the data security of digital currency in blockchain transactions is the direction of this article. This article first analyzes the basic structure of the blockchain, and then takes Bitcoin in the digital currency as an example to introduce its technical principles and implementation process. Finally, the PBFT algorithm is proposed, which can search for the application of encryption in the blockchain consensus mechanism. The experimental data verification proves the future application prospects of blockchain-based digital currency using PBFT algorithm to protect data security.