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Rachel Welch

09 October 2022 174 Read Blockchain

Is Blockchain Safe From Fraud?

Blockchain is a form of distributed ledger technology. This digital shared ledger keeps track of all transactions and makes them transparent. Its creators touted the technology as a tool to combat fraud.

While this is a positive aspect, the technology also has several flaws that make it prime for scammers. First, there are no laws that govern blockchain. Second, there is no central authority to verify the validity of each transaction.

The anonymity of blockchain networks has raised red flags among some detractors. Some claim that this feature makes it easy for hackers to commit fraud and money laundering.

The technology also allows criminals to conceal the origin of funds, making it easier for them to use it for illegal goods and services.

However, blockchains are not completely anonymous, and any attempt by a hacker to change data will be marked by the system administrator.