Riot Blockchain's CEO John O'Rourke explains how the blockchain encryption mining network works.
Blockchain encryption prevents sensitive information from getting into the wrong hands, and being misused or forged. Riot Blockchain's CEO John O'Rourke explains how this encryption works.
The blockchain ledger records every transaction that has ever taken place on that blockchain. That transaction gets verified, uploaded, and secured by anyone that's on that particular blockchain network, O'Rourke said.
The way blockchain and encryption security works is based on math, through a mining network. "It's basically basing your faith in math vs. basing your faith in some other trusted party that could potentially be hacked," he said.
SEE: Blockchain: The smart person's guide (TechRepublic)
Anyone who is dedicated to securing the blockchain is incentivized by the currency part of the reward. Every transaction that is verified by solving an algorithm, if approved by a consensus of over 51% of the blockchain network, gets added to the blockchain. Once that transaction is added, it can never be changed.
It's all about math, he said, and a reward system with the proper incentives put in place. People solve algorithms that essentially verify every transaction, and then it gets added to the blockchain.
Any sort of system that's still relying on paper records is very antiquated, he added. "The blockchain allows all of that to be digitized, and secured with every single transaction on that ledger," O'Rourke said.
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