The advantage and usefulness of blockchain can never be overemphasized, its transparency, security decentralization helps in so many area which includes securing transactions that have been conducted in any block chain.
We all know that today's transaction is not secured as the day comes by we experience different challenges like sometimes one can be debited for no reason or one can be debited without receiving the cash, an account can easily be hacked and the whole money in the account will be stolen.
So let's look at some challenges that today's transaction face that make it to be unsecured.
There are several reasons today why transactions today and not secured people are always scared of conducting transaction especially in the centralized system.
Most of every transactions I done with either a PIN or password which can easily be generated or stolen by anyone because they are guessable, and they also weak so there is need for multifunctional authentication.
If you go to different banks social here in Nigeria most of the system that are being used for transaction are out of date so they can be easily hacked by exploiters or scammers so once transaction is going on they are so scared because they know that those transactions are not secured.
Most times when you go to deposit your money in the bank and they will tell you that there is no network you'll be imagine how come there's no network to deposit money in your personal account all these are because the systems and the technologies that they use are not up to date.
Someone went to deposit money to his account only for the lady in the customer service section to mistakenly post the money to a different account and the owner of the account was expecting to be alerted over the money he deposited only for him to come back after two days and he was informed that the money was mistakenly deposited to someone's account and they have been calling the person to come so that they can be able to withdraw the money and put it back to where it belongs, search error or mistake on the part of the customer service care so search error during transaction can sometimes lead to missing money or unsecured transactions.
Some criminals are out there and always ready to breach system security and steal important data which will enable them invest to people's account and quickly move or steal their money during transactions.
I want to withdraw money from the ATM yesterday I was debited and the machine said unable to dispense cash so I asked my friend who works in the bank what's going on, she told me that the bank was hacked and almost all the transactions taking place at that moment were hacked and those money are gone so they don't really have money to pay people they are trying to sort it out, getting loan to sort it out, and this was as a result of lack of encryption and using outdated technology because during transaction sufficient encryption of data transmission is needed
because when there is little or no encryption hackers will find it very easy to steal informations during transaction.
These and many other challenges makes it difficult to have a secured transaction in the centralized system,also transactions today face lack of regulation there are a lot of gap and space there are left during transaction, there are no proper guidance during transaction and this is risky, even the third party that is involved during centralized transactions are also risky, a whole lot is wrong.
Let's look at how the blockchain can improve security during transaction.
Blockchain technology comprises of three components which is the blocks where transaction informations like the sender and the receiver, the address the amount up to date and time are recorded, there is the chain that links all transactions and the computers where the transactions are validated.
Blockchain has so many ways in which it can positively contribute to secure transactions.
Unlike centralized transactions that are controlled by an individual, in blockchain transactions cannot be manipulated by anyone because they are not controlled by anyone other they are recorded in a ledger across a network of computers so those transaction or data information cannot be easily hacked.
Any transaction added to the blockchain can never be erased by anyone so all transactions history are transparent for all to see so no one can make mistake during transaction even if there is a mistake or calls it can be traded through a traced his record.
Blockchain uses cryptographic techniques so all the transactions are encrypted and they are linked together creating chain of blocks and this makes it difficult for a hacker to attack or steal data informations.
Also blockchain transactions do not need PIN or password during transaction rather they use private keys that cannot be guessed by anyone and once these keys are safe all transactions will be secured transaction in the brochure and can be audited and this enhances security.
Blockchain transaction there is no need for customer service care to make some mistakes during transactions because blockchain uses what is known as smart contract during transactions to the automate and self execute transactions.
Conclusively transactions are secured in blockchain because of it's decentralization, smart contracts, transparency, encryption and consensus mechanism, in effect with all this Blockchain positively contribute to secure transactions.
