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Cybersecurity Guidelines for Digital Financial Asset Trading Providers in Indonesia
This interlinked structure forms a chain in which each block depends on the integrity of the previous block. Once a block is added to the chain, its data cannot be changed. Any alteration of information would require the recalculation of the cryptographic hash of the relevant block and all subsequent blocks in the chain. Such changes also require consensus from the distributed network participants, making blockchain very difficult to manipulate and highly secure in nature 1 . Consensus can be achieved through mechanisms such as: a. Proof of Work (PoW): a consensus mechanism in blockchain that relies on computational power to maintain network security. In this system, miners compete to solve complex mathematical puzzles to gain the right to add a new block to the blockchain. The first miner to succeed is rewarded with incentives in the form of cryptocurrency. While PoW is proven to be reliable in maintaining network integrity, it requires significant energy and computing power, and is often considered inefficient in terms of energy consumption 2 . b. Proof of Stake (PoS): an alternative consensus mechanism that is more energy-efficient than PoW. Instead of using computational power, PoS selects validators to create and verify new blocks based on the amount of cryptocurrency they “stake” in the network. The greater the stake, the higher the chance of being selected as a validator. With this approach, PoS significantly reduces energy usage (more efficient) while maintaining network security and decentralization 3 .
1 Zairis, Antonios, and George Zairis. “Digital Innovation: The Challenges of a Game-Changer.” European Conference on Innovation and Entrepreneurship, vol. , no. , 2022, pp. 630-637. 2 https://www.forbes.com/advisor/investing/cryptocurrency/proof-of-stake/; Sivianes Castaño, Manuel. “Design of a Blockchain-based Platform for Peer-to peer Energy Trading.” 2021, https://core.ac.uk/download/483360619.pdf. 3 https://www.forbes.com/advisor/investing/cryptocurrency/proof-of-stake/
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