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What Makes Blockchain Secure: Key Characteristics & Security Architecture

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8th Jan, 2021
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What Makes Blockchain Secure: Key Characteristics & Security Architecture

What Makes Blockchain Secure?

Blockchain technology refers to a decentralized database system containing cryptographically linked blocks of digital assets. Blockchain technology refers to a peer-to-peer network database ruled by a decentralized system.

It represents a sequential shift away from the conventional agents towards transparent conduct.

Blockchain technology has been transforming sectors to every dimension, especially the way businesses perform their day-to-day tasks. Blockchain integration in business solutions also cuts out intermediaries’ role across various vital services and reduces overheads.

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Blockchains are secured through multiple mechanisms, including advanced cryptographic techniques, logical models, and many more.

Read: Blockchain jobs and their career opportunity for non-techies.

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We will explore the techniques that make blockchain secure further in this article.

Blockchain Security: Centralized Blocks

As the name suggests, ‘Blockchain Technology’ is a centralized digital blockchain containing transaction money. Every block in this is connected to other blocks present above and below it. Blockchain solutions are specially crafted to be tamper-proof and are highly secure.

Blockchain defines three core strategies: Cryptography, Decentralisation, and Consensus.

All these measures make it difficult to tamper the blockchain technology with an individual record. It is because the hacker would be required to change the entire block containing the blockchain records. The network participants also have their security keys assigned to the ultimate transactional key that acts as a personalized digital signature.

Under any circumstances, if the record is altered, the digital signature gets invalid, and any attack will be detected by the corresponding network right away.

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In a blockchain, early notifications and alerts are significant to prevent any further damages or attacks. At a glance, blockchain security also provides various desirable features that help to secure transaction data. If you want to learn more about how blockchain can change the future, read more on why blockchain is the future. 

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Key Characteristics Of Blockchain Security

Blockchain technology comes with many built-in features that appeal to objectives like cryptocurrency transactions, land records, and many more. The protection of confidential data is a determinant factor for users.

Blockchain is undeniably a measure that ensures security. It has become a disruptive technology due to its ability to centralize, incentivize, digitize, and secure the transactions’ validation. The records are protected through cryptography decentralization to ensure the foolproof blockchain security of the blocks.

Many sectors are evaluating blockchain Technology for detecting the strategic differentiation to leverage their business potential. Blockchain has the potential to simplify business processes and give them access to enhanced performance and security.

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Every transaction in this technology that gets recorded and stored is not directly labeled as a blockchain.

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Some of the defining characteristics of blockchain technology are as follows:

1. Distributed

Distributed blockchain technology evenly distributes the processing among all business peers, developing a shared infrastructure within the business system. Participants can independently validate the details without any centralized authority.

2. Immutable

In this, all the blockchain transactions in the blockchain-based technology are immutable. Even the code encryption is done for the transactions, effectively covering the participants’ date, time, and information.

3. Consensus-Based

The transactions in blockchain technology are executed only when the parties present on the network anonymously approve the same. One may even choose to alter the consensus-based regulations to match the circumstances.

4. Digital Signature

This blockchain technology streamlines the exchange of translational values with unique digital signatures that depend on public keys. In blockchain technology, private key codes are known only to the key owners to develop ownership proof. It is a critical feature that avoids any fraud in blockchain record management.

5. Persistent

Persistent blockchain technology invalid transaction detected by the consensus-based system. It isn’t easy to roll back the transactions once they are integrated into the blockchain ledger. Cryptographically, blockchain blocks are created and sealed inside the chain, making it difficult for the hackers to edit or delete already developed blocks and put them on the network.

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The Security Architecture In The Blockchain Technology

The blockchain records are protected through cryptography, where network users have their own private and secure keys. This key is assigned directly to the transaction keys, and it acts as a personalized digital signature. Blockchain safeguards and prevents any malicious attack and secures the data of the company by encrypting it.

This technology enables enterprises to separate their responsibilities and roles. It also helps them to protect confidential information without compromising access to any privileged user.

Blockchain is empowered at many layers for developing any enterprise application.

These layers include the following elements-

  • User access layer
  • Presentation layer
  • Identity and access management layer
  • Application layer
  • Network layer
  • Infrastructure layer

Blockchain technology is specially designed to pay off in the long run. Blockchain professionals can help you implement the essential measures to ensure the success of your blockchain solution. Blockchain has irreversible and highly encrypted data blocks that allow us to fight against any fraudulent conduct.

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Blockchain technology also safeguards the encryption keys with the help of high-grade security standards.

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Also Read: How to make a successful career in blockchain?


Blockchain Technology has presented its potential for conventional transformer industries with its key features like- persistence, decentralization, audibility, etc. Blockchain offers highly enhanced security during transactions irrespective of its value. Blockchain security also makes it a highly unique and universal solution to streamline legal contracts and Enterprise transparency.

If you’re intrigued by reading this article and want to start your Blockchain career, you can visit upGrad. Check out IIIT-B & upGrad’s Advanced certificate program in blockchain technology to learn building smart contracts and chain codes. The course will surely help you understand Blockchain’s basics and its future in marketing strategy. 


Mayank Sahu

Blog Author
Mayank Sahu is the Program Marketing Manager with upGrad for all emerging technology vertical. His past experience is in analytics industry extensively in healthcare Domain. Mayank has completed his Graduation from IIT Delhi.
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Frequently Asked Questions (FAQs)

1What is Blockchain?

Blockchain is the technology that underpins Bitcoin. At its heart is a distributed data storage system. Anyone who joins this network gets their own data store, often known as a distributed ledger, which keeps track of all of the network's transactions. A cryptographic blockchain is used to store entries. At each level, the network of participants must agree on the most recent block of transactions. To reach a majority consensus, duplicate entries, double spending, and other discrepancies are removed. As a consequence of this operation and the cryptographic stacking of the blocks, the certified Blockchain is irreversible and immutable. Without the approval of the group, any of the members can modify the 'history' of occurrences within this technology.

2What is Consensus in Blockchain?

Consensus, which is a collection of protocols, governs the blockchain network. It ensures that no duplicate blocks are added to the chain and that the block is only added after agreement from all other nodes in the network. It contributes to the development of peer node reliability and trust. Some of the various consensus mechanisms are Proof of Work (PoW), Proof of Stake (PoS), Proof of Elapsed Time, Proof of Capacity, and Proof of Burn. PoW is a consensus algorithm in which a problem or challenge is presented. The reward is given to the node that answers the task the fastest. Proof of Stake is a consensus process in which the new block is validated by the node with the most significant stake or cash.

3What is a block in Blockchain?

In the context of a blockchain, the term 'block' refers to a collection of transactions that have been broadcast to the network. A 'chain' is a collection of these bricks linked together. When a new block of transactions is validated by the network, it is appended to the end of an existing chain. This chain of blocks is a continually growing record of transactions that the network has approved. A blockchain is a shared transaction history that has been agreed upon. Only one block can exist at every given chain height. There are a variety of ways to add more blocks to an existing chain. They all include cryptographic techniques of varying degrees of complexity.

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