Cryptographic immutability refers to the property of data, typically records on a blockchain or distributed ledger, that ensures its permanence and resistance to alteration or deletion once recorded. This characteristic is established through cryptographic hashing and chaining mechanisms.
Mechanism
The mechanism relies on cryptographic hash functions, which produce a unique, fixed-size output (hash) for any given input data. When a block of transactions is added to a blockchain, its hash is calculated and included in the subsequent block, creating a cryptographically linked chain. Any attempt to modify a past transaction would alter its hash, invalidating the hash stored in the next block, and consequently all subsequent blocks, rendering the tampering evident and computationally infeasible to conceal.
Methodology
The methodology of cryptographic immutability underpins the integrity and trustworthiness of blockchain systems. It provides an auditable, verifiable record of all transactions, critical for financial transparency and security in crypto investing and institutional trading. This principle eliminates the need for a central authority to guarantee data authenticity, thereby distributing trust across the network and reducing systemic risk related to data manipulation in RFQ or settlement processes.
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