Cryptocurrency can be really scary for newcomers. Join us as we cut through the noise and talk about digital asset security!
Can Bitcoin be hacked?
There is a seemingly endless supply of stories regarding stolen Bitcoin and the risk of digital currencies. Mainstream Bitcoin news is oftentimes very bleak (unless it’s about the current bitcoin price). But negativity and sensationalism don’t tell the whole story.
It’s no secret, we’re big proponents of decentralized currencies. So we’re going to cut through the noise, and give you the facts. Can Bitcoin be hacked? Well, like all good answers, it depends. It’s necessary to define how we’re defining stolen.
Can you have your access to Bitcoin taken away? Yes.
Can the blockchain itself be compromised? Theoretically, yes, realistically, no.
The importance of this distinction is the same as distinguishing between having your wallet stolen with cash in it, or being given counterfeit banknotes. Having your wallet stolen is possible for both Bitcoin and fiat. However, the latter is not.
Firstly, let’s understand how transactions work.
The term blockchain refers to the shared public ledger on which cryptocurrency networks rely. All transactions that are confirmed become a part of the blockchain. It allows a cryptocurrency wallet to calculate their ‘spendable balance’ so that new transactions can be verified thereby ensuring they're actually owned by the spender.
Conceptually it can be difficult to understand, but it’s as simple as a long spreadsheet that contains every transaction, from which, your wallet can calculate the amount of Bitcoin, or currency, you have access or ownership over.
Miners are responsible for carrying out the validation of this ledger. Through consensus, they reach the objective truth. When a transaction is submitted, it must be agreed upon by miners, before it can be added to the chain. Once added, that transaction is an immutable part of the ledger, and will be for the rest of Bitcoin’s existence. This work is governed by Bitcoin’s proof of work protocol, which has drawn plenty of criticism recently due to its energy consumption.
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https://diviproject.org/blog/can-bitcoin-be-stolen