Information Technology Audit, Security and Consultin Services Department Leader Ateş Sünbül has written for the February issue
BLOCKCHAIN, TURKEY AND SECURITY
In our daily financial activities, to require tertiary structure for trust exchange value between two people.
For example; when we make money transfer, banks are the tertiary structure that do this activity for us so we trust the banks to transfer money to the rights address. There are encryption algorithm between 2 people and a reliable tertiary party that can be used as virtual value or money system to blockchain structure. To explain the blockchain structure simply way, imagine that you created an excel table and copied thousand times then placed it in a network. Imagine that you regularly update that table you design in this network. This is basic principle of Blockchain. If simply want to perform an action.
1. Bitcoin transfer is requested.
2. Requested transaction is forward network structure in the form of p2p.
3. Network nodes is approved.
4. The approved transaction becomes a block containing crypto currency.
5. The block that is added cannot changed or overwritten and then spread to the entire networks.
6. The transfer is successful.
There is a data center in a single center in classical financial applications. However centralized system provides security experts focus on single point also provide attackers the same advantage. Distributed computer networks have copied of databases in the block chain so ıf we want to make data manipulation; we have to make change at the same time millions of PC’s but this is unlikely. The advantage of not being a single center is that data are public and simply verify.
When we look at the development of payment instruments, stealing credit card information and unauthorized transaction become a fact of our lives. Protecting this information has began a struggle with more effort and money or security experts. However, we make transaction with bitcoin, two elements is require: Public key, in other words your bitcoin addresses and private key where yoı sign the private key. Good protection of private key prevents unauthorized money transfer. Shortly, security has been higher level in new revolutionary financial instruments.
Blockchain technology in Turkey become acquainted with Wannacry virus attack, computers and servers are encrypted victims in this attack, forced to pay fee. Shortly, attacker used privacy and security provided normal user in his favor.
Bitcoin and similar currencies are not use in Tukey. On the other hand, some business have started to pay with bitcoin an also small investors plan to buy bitcoin or buy from coin exchanges. Also there are virtual currencies agents in Turkey. Who is guarantor of currency in congruence? And that transactions are on a really safe and accredited structure? It’s not possible to find the answers these questions.
However, when we look at this situation globally, it’s possible to see that it is not answerable in every country. Using and spreading of the internet can be show us development of bitcoin. The structure and use of the internet had been unpredictable technological advance. Now, it’s a fact and necessary of our lives. Critical financial structures use primarily internet channels also use bank without a branch. Turkey has succeeded in checking and expanding the laws and regulations issued this development. These laws and regulations will ensure future technical security for Bitcoin and other currencies.
We need more time for investment. We’ll more see clearly blockchain accepted as a currency in Turkey. Its increasing to use in globally but experts can not predict financial and technological risks in the long term. Actually, Blockchain Technology should not be considered only as currency. We have opportunity to see may different applications. The widespread use of bitcoin will also increase with Increasing different applications. At this point, security environment and financial approaches changes as we never seen. All these changes will not protect stereotype security approaches.