StartKryptowährung NewsWhat is blockchain security? An overview

    What is blockchain security? An overview

    Blockchain technology is sometimes touted as being tamper-less. In reality, it’s susceptible to cyberthreats. Consider the following blockchain risks and security issues that can arise, including a few real-world examples of when blockchains were compromised.

    Phishing attacks

    One of the oldest hacking attempts in the book, phishing, is when a scammer tries to lure sensitive information or data from you by disguising themselves as a trustworthy source. They use platforms like text messages, emails, and even phone calls to do it.

    These phishing messages might entice blockchain users to provide their unique ID associated with a blockchain account or encourage them to click a link that gains access to a blockchain network.

    Code exploitation

    Read more: Blockchain und IT-Security

    Code exploitation is when a blockchain user — or cybercriminal acting as a blockchain user — identifies a weak spot in a blockchain’s software and exploits that weakness with malicious intent.

    An example of this took place in 2016. A hacker swiped more than $50 million from a venture capital fund known as a decentralized autonomous organization by way of code exploitation.

    Routing attacks

    Routing attacks can come in a few forms, with the most common being denial of service attacks and man-in-the- middle attacks. In both instances, cybercriminals stealthily intercept data as it’s transferred across a network, usually a weak Wi-Fi network.

    In the instance of blockchain of technology, cybercriminals essentially lurk on a weak network when a permissioned blockchain user is on. The permissioned user has no idea the information they’re adding to a blockchain or verifying in a blockchain is being monitored and potentially compromised.

    Stolen keys

    Read more: Top 5 Blockchain Security Issues in 2022

    Remember how every blockchain user is granted a unique identifier — kind of like an ID badge — to enter a blockchain network? Those are also known as private keys and, yes, they can be stolen. When in the wrong hands, a cybercriminal can attempt to alter information in a blockchain under a permissioned user’s key.

    An instance of this was seen in 2021 when $140 million worth of Bitcoin was stolen from crypto users. Authorities in charge of the investigation pointed to stolen keys as the source of the theft.

    Sybil attacks

    The “Sybil” in Sybil attack stems from a fictional book character with dissociative identity disorder. To that tune, Sybil attacks are when cybercriminals overwhelm a network with login attempts or false credentials and cause them to crash.

    This can give cybercriminals free rein over a compromised blockchain network.

    Computer hackings

    Read more: Wallets, Hospitals and the Chinese Military: 18 Examples of Blockchain Cybersecurity at Work

    Blockchain technology might seem advanced, but it’s no less vulnerable to good ’ole computer hacks — even in the form of a malicious individual sitting right in your computer chair and accessing a blockchain network you’ve been granted permission to.

    In October 2021, $16 million was stolen from England-based cryptocurrency platform Indexed Finance, with an 18 year-old hacking prodigy as the main culprit.

    51% Attacks

    This blockchain security threat is mostly applicable to Bitcoin, which is built on mining, or solving cryptographic problems to validate transactions added to a block. Bitcoin users can essentially commandeer a Bitcoin network if they’re able to control more than 50% of the computing power of a blockchain.

    In other words, this would require a group of Bitcoin users to be mining at the same time and with the intent of excluding new transactions being added to the blockchain. It’s a very unlikely scenario.

    How to improve your blockchain security

    Read more: Blockchain security – Krypto-NFTs

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