Blockchain data breach


#1

I’m wondering, isn’t it easier for data breach to take place when the data in blockchain is distributed and stored at multiple location? Can anyone clear my doubt?
We talk about blockchain advantage is being with distributed consensus. But, also, meaning creating multiple honey pots? Is there anything I’m missing?


#2

Hey Natoshi,

I’ll explain through analogy. Say you have a group message with 5 other people (think Whatsapp, for example). When you send a message, everyone receives that exact same message. If you decide to delete one of the messages in the chat, it disappears for you but not for everyone else.

Why does this analogy matter?

Because for a decentralized blockchain, all nodes have an exact copy of a blockchain. Should one of those nodes be compromised or attempt to change historical data in a blockchain, its hash would be inconsistent with all other nodes. When a new block of transactions would try to be appended to this corrupted node’s hash, it would not work as only a valid history’s hash would be able to append a new block.

If you aren’t familiar with how hashing works, I recommend watching this intro video to hashing. It’ll help you understand why a compromised/incorrect historical hash would not be appendable: https://www.youtube.com/watch?v=_160oMzblY8

So, in summary, for a centralized entity, there is one point of attack. But for a decentralized entity, a 50+1% hack would have to happen in order to obtain consensus to make a change in the blockchain or approve illegitimate transactions. This would be pretty much impossible as it would be extraordinarily costly. And, even if it did happen, honest nodes could choose to ignore the dishonest node’s version of the blockchain (hardfork), and would pretty much make all the transactions the dishonest node made worthless.

Hope that helps! :slight_smile:


#3

Hi @NatoshiSakamoto

Could you give an example of the data you are referring to as breached?
Aren’t honeypots hacker-traps? I’m having a hard time seeing the full picture of the question. An example scenario of your concern would strengthen the question a lot.

Cheers!