Blockchain as a Reliable Security Framework

Abstract

Over the past several years, Bitcoin (the pioneer of Blockchain) has harnessed the cutting edge Blockchain software technology to securely decentralize financial transactions so control can be passed democratically to anyone who wishes to participate in the peer-to-peer network. It does this entire task with a mere shared chain of transaction history utilizing blocks of 5-tuples (transaction ID, transaction fee, transaction size, sender(s) private key(s) and amount(s), recipient(s) public key(s) and amount(s)) that get added to the distributed ledger across all nodes in the peer-to-peer network around once every ten minutes. With Bitcoin’s market capitalization at nearly a billion dollars, and many rising competitors taking advantage of Blockchain for financial transactions, it is not hard to see that this new way to transcribe digital information is sweeping the financial world at a blistering rate. For reasons explained further in this paper, we will explore why Blockchain financial ledgers tremendously increase security, transparency and privacy in comparison to traditional database financial ledgers.