What risks may the application of blockchain technology bring? In theory, blockchain technology is very safe and reliable, but in practical applications, blockchain technology also has risks. The application of blockchain technology has been extended to all aspects of life, and the financial field has long become the focus of the layout of blockchain technology.
Risks
in the application of blockchain technology The application of blockchain technology in the financial field still faces risks and challenges. At the technical level, it is still difficult to take into account the safety, function and performance requirements of some financial scenarios. Blockchain technology improves the level of security and credibility through a large amount of redundant data and complex consensus algorithms. The increase in financial business needs will lead to a greater increase in system processing capacity and increase the burden of participating nodes in information storage and synchronization. Under the existing technical environment, system performance and operating efficiency may decrease.
There are still some hidden dangers in key security, and there are also certain difficulties in the integration and integration of the underlying technical architecture of the blockchain and the existing technical system. At present, relevant arrangements for supervision, standards, and talents need to be further improved. The widespread application of foreign open source programs may lead to technology dependence risks, and open source service related parties such as code hosting platforms also need to comply with the laws and regulations of the registration place and other relevant jurisdictions. There are policy risks that cannot be ignored under the background of rising trade protectionism.
Application risks of blockchain technology:
1. Digital currency is stolen
Digital currency has encryption keys, a public key and a private key. The public key can be given to others, but the private key must not be leaked. This private key is the same as the password of our bank card. It is extremely important. It should not be known to others. If it is known to others, then your digital currency can be stolen by others, which is equivalent to giving away the money for nothing. Others, others can easily transfer your money away. Therefore, to protect your private key, when we create a wallet, the private key is best generated off the network and manually copied and stored. Because once the private key is lost, it cannot be retrieved.
2. 51% computing power attack
In the entire blockchain ecology, it is based on computing power to determine consensus. If a person's computing power reaches more than 51%, that is to say, this person has more than 50% of the computing power on this chain, then he can decide how to send the information on this chain. Since he can decide, he can fake information, change information at will, etc. Of course, it is very difficult to achieve this kind of computing power, and sometimes the gains outweigh the losses, but the possibility of this kind of risk is not ruled out.
3. Exchanges are attacked
Digital currencies are all stored in exchanges, and most of the current exchanges are centralized exchanges, which are also presented in the form of websites. If the website has various vulnerabilities, hackers will have the opportunity to take advantage. If the exchange is attacked, the digital currency you have in it may disappear, so the exchange may also be attacked. Of course, the exchange itself will also attach great importance to security issues.
To deal with the application risks of blockchain technology, it is necessary to strengthen the research and analysis of blockchain security risks in terms of policy supervision, closely track development trends, and actively explore development laws. Explore the application of blockchain in the financial field and relevant responsible entities to carry out evaluation and evaluation of the real economy value, legal compliance, safety standardization, operational stability, etc., and promote the application and promotion of results and experience.