A blockchain is a form of distributed ledger technology wherein a shared digital ledger makes transactions visible and transparent. For years, blockchain was touted by futurists as a way to stop fraud from happening. However, blockchain also has several qualities that make it prime for various scams by bad actors—irreversibility, lack of laws, and anonymity.
So while blockchain makes it possible to see an asset's history of ownership and make it relatively easier to identify fraud, it doesn't make it impossible.
Is Blockchain Safe?
Whether blockchain is safe depends on several factors, which may or may not put you at risk of fraud. While blockchain technology is built for security, its safety limitations are rooted in two things—the security features of its supporting technology and the human aspect of its use.
Unfortunately, international laws have not yet adapted to the rise of blockchain use. Unlike credit cards and debit cards, blockchain-enabled cryptocurrency transactions in most countries do not have legal protections. In fact, crypto transactions typically do not include a dispute process, cannot be canceled, and are not reversible.
Continue reading: https://www.makeuseof.com/ways-fraud-possible-on-blockchain/
So while blockchain makes it possible to see an asset's history of ownership and make it relatively easier to identify fraud, it doesn't make it impossible.
Is Blockchain Safe?
Whether blockchain is safe depends on several factors, which may or may not put you at risk of fraud. While blockchain technology is built for security, its safety limitations are rooted in two things—the security features of its supporting technology and the human aspect of its use.
Unfortunately, international laws have not yet adapted to the rise of blockchain use. Unlike credit cards and debit cards, blockchain-enabled cryptocurrency transactions in most countries do not have legal protections. In fact, crypto transactions typically do not include a dispute process, cannot be canceled, and are not reversible.
Continue reading: https://www.makeuseof.com/ways-fraud-possible-on-blockchain/
