The blockchain can be seen as software that has trust baked into it from the ground up. Whereas we secure traditional systems by burying them in the depths of our organisation, relying on firewalls and system administrators to keep them secure, the blockchain is a database so robust it can be made public.
Anyone can transact with the database: the security of the blockchain is provided by the underlying computer science of Satoshi Nakamoto’s Bitcoin whitepaper. The database acts as a distributed ledger with all transactions copied across all nodes on the network. Satoshi’s Proof of Work algorithm uses mathematics and consensus algorithms to secure the network.
The Ethereum Virtual Machine takes this a step further, by providing a turing complete scripting language that executes within the blockchain. This allows smart contracts to be deployed that are guaranteed to run exactly as programmed with 100% uptime and zero chance of censorship or third party interference of any kind.
Despite some misinformation around the DAO attack, the Ethereum protocol has never been compromised and continues to protect $1.8 billion USD in ether, the cryptocurrency used by Ethereum. The DAO attack was the result of a poorly written smart contract: the Ethereum protocol itself acted flawlessly. It is critical that anyone deploying a smart contract first seek review from experts.
At Teal Australia, our code is our craft. Our blockchain solution architects are passionate about building ultra secure, decentralised solutions. We can also advise you on whether parts of the solution should be centralised to meet your specific business case.
To engage Teal Australia for your blockchain Ethereum smart contract/decentralised application project in Perth WA or Australia arrange a free consult, no obligations.