Bitcoin’s blockchain, developed by the Bitcoin Foundation, allows businesses to securely store, manage and share their financial data on the network.
The foundation said it was the first time that blockchain could provide this level of security for businesses.
But the blockchain itself is vulnerable to hacking and other malicious attacks, making it unlikely that a trust-based company will use it to make their money.
That’s because blockchain itself cannot be tampered with, so any attacks on the underlying software are trivial to prevent, said Andreas Antonopoulos, chief technology officer at Ethereum, a blockchain project backed by the Ethereum Foundation.
“The blockchain itself has no vulnerabilities,” he said.
“It’s the underlying code that is vulnerable.
So even if you can figure out how to make it more secure, that’s all it will be.”
Antonopoulos said the most secure way to transfer money was to send a bank wire transfer through a central bank, but that the same mechanism would be vulnerable to attack.
In addition, the technology’s decentralized nature means it is impossible to monitor and audit every transaction.
And even if an attacker is able to gain access to a particular block, the only way to verify that is to examine the transactions.
That means that any blockchain, like bitcoin itself, cannot be trusted as the basis of a trust relationship, Antonopoulos said.
The only way a blockchain company can be confident of its identity is to have an open source code that it can easily change.
That has been done, and some blockchain projects, such as the Ethereum network, are using open source software to create software that can be used to make blockchain software open to developers.
But this can only be done by a group of developers.
“There’s no way that you can trust the code that they wrote because the code itself is completely open source,” said Mike Novogratz, CEO of The Cloud, a cybersecurity startup.
“And so you can’t trust the software itself.
That’s why we need open source.”