FINANCIAL SECURITY IN BLOCKCHAINS- 10% @tron-fan-cub

Hello everyone in the community I hope you all are having a wonderful weekday, today I will be making a post on decentralized finance security.

I have explained decentralized finance as blockchain-based built on the cores of distributed ledger eliminating a need for intermediaries. The whole op of blockchain is that assets in your possession are 100% yours to do as you see fit. With this advantage comes a big responsibility on the DeFi to ensure that a security system is put in place to safeguard its user's assets. I will like to shed some light on these protocols that make the DeFi a so-safe environment for users' assets.
The blockchain places 2 security measures to ensure the safety of the blockchain which are

HASHING
CRYPTOGRAPHY

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CRYPTOGRAPHY

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Cryptography could easily be described as simply the encryptions of data/messages/transactions with a set of keys that can only be decrypted by the receiver it was intended for in possession of the unique unlocking keys or decrypting keys.
Cryptography has been a security protocol for a while but was made even more popular when it was adopted by blockchains, the process often requires two keys a public key used in the encryption of a message and a private key which will serve as the address of the encrypted message, the need for cryptography is paramount as of lately cause messages usually get intercepted by third parties, without the keys though it will take a third party a lot of years of consistent attempt to be able to crack an encrypted message. We have two types of cryptography i.e ASYMMETRIC & SYMMETRIC

SYMMETRIC CRYPTOGRAPHY

The symmetric cryptography is a one way type of cryptography that requires just one key which has to be shared between receiver and sender which will in turn be used to encrypt and decrypt messages

ASYMMETRIC CRYPTOGRAPHY

The asymmetric cryptography can be seen as a more sophisticated cryptography which requires a set of keys i.e the public key used to encrypt the message while the private key is used to decrypt messages sent

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Now we can see a practical application of cryptography in the blockchain, especially in cases of the wallets we use to send transactions, our private keys are designed to carry along a digital signature which we can use to access our wallet and make transactions while we can share our public key to anyone with which we can use to receive
The blockchain generates each user set of private and public keys uniquely so as to ensure no collisions between keys, the blockchain generates the address in such a way that every Public address out there is unique and there is in no way a coincidence between two keys this way every wallet has its own alphanumeric public key, while the private keys serve as an identifier of a user to the blockchain via his wallet, the private key is more like digital signatures. in a nutshell our blockchain adopted the asymmetric cryptography to secure our wallets

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HASHING

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A hash function in the blockchain is a computational algorithm that takes any amount or length of alphanumeric input and produces a fixed length of mathematical output called hashing or hash value which are usually of fixed length 64bit/128bit and non-reversible.

The hash functions have two distinct features which contribute vastly to the security of the blockchain I.e Resistance to preimage which is a feature that ensures complication when trying to reverse a hashed value and resistance to collisions which is a feature that ensure no two keys either private or public in the entire blockchain are the same and are generated in a rather completely random manner.
The alphanumeric keys generated by bash functions are used to confirm or validate blocks in a blockchain, when a hash is omitted it renders all other hashes in the block below it as invalid hence in the case of merkle trees or distributed ledgers

DISTRIBUTED LEDGER

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You might probably be wondering how this made it here well here is why, the distributed ledger holds the record of every transaction performed in the blockchain and is recorded on every node in the blockchain as well, hence when a transaction is carried out is recorded.
Recorded data is immutable and impossible to edit hence ensuring some certain amount of safety that no fake transaction can be approved ever cause every node has the same record. with the help of hashes for instance the MERKLE TREE a parent hash is created then other hashes follow in a block when a single digit is omitted the whole block is regarded to as invalid and the transaction would not pass.
The distributed ledger could easily pass for the blockchain's security layer as it helps keep hackers at bay and improve transparency in the blockchain.