Blockchain security is a robust risk management system for blockchain networks that consists of cybersecurity standards, best practices, and a level of assurance for reducing the risks of fraud and cyberattacks.
Since consensus, cryptography, and decentralization are the foundations of blockchain technology, its data structures have fundamental security qualities. Because every new block of data is connected to every previous block in a specific way, tampering is impossible.
Additionally, a consensus process (authorized users) verifies and accepts all transactions in a block, guaranteeing the accuracy and truthfulness of each transaction. As a result, users cannot alter transaction records, and there is no single point of failure.
There are blockchain issues. There are ways for cybercriminals to exploit the blockchain’s weaknesses and seriously harm it. Here are four potential ways that hackers could misuse blockchain technology.
Problems with blockchain security
Attacks on the routing system: Blockchains rely on massive, real-time data transfers. Hackers can steal data en route to ISPs if they have the necessary expertise. Unfortunately, the issue is unknown to blockchain users.
Sybil attacks: They overload the target network with bogus identities and bring the system to a halt. They are named after a book about multiple personality disorders.
Attacks using phishing: This time-tested hacker ruse can be applied to the blockchain. Phishing is a scam in which cyber criminals ask wallet owners for their information by sending phony but convincing-looking emails.
Attacks using phishing: This time-tested hacker ruse can be applied to the blockchain. Phishing is a scam in which cyber criminals ask wallet owners for their information by sending fake but convincing-looking emails.
Examples of Blockchain Security
Mobilecoin: California-based Mobilecoin is developing a safe, straightforward cryptocurrency for businesses that cannot afford to deploy ledger security measures independently. Because all transaction data is encrypted on both ends, the cryptocurrency Mobilecoin eliminates the need for third-party transaction providers. In addition, the program supports Facebook Messenger, WhatsApp, and Signal.
Lockheed Martin: The first company of its sort to implement blockchain security is this American defense contractor. Blockchain cybersecurity protocols are being implemented in engineering systems, software development, and supply chain risk management by Lockheed Martin and Guardtime Federal. Its objective is to secure each stage of weapons development using blockchain technology.
Cisco: This multinational rival with headquarters in California believes that blockchain technology is perfect for the Internet of Things (IoT) because it eliminates single points of failure and encrypts critical data. This idea is vital given the ongoing growth of the Internet of Things. Blockchain technology’s visibility and use will rise if it takes over as the primary IoT network.
Hashed Health: This Tennessee-based healthcare innovation business wants to help the healthcare sector adopt blockchain technology. The organization comprises three entities, Hashed Collective, Hashed Enterprise, and Hashed Labs, each of which focuses on a different aspect of a blockchain. Hashed Health has partnered with numerous hospitals and healthcare organizations to build secure blockchain digital networks.
Tips for Blockchain Security
It’s crucial for blockchain security to understand and manage network threats. The goal is to use a blockchain security model to enhance the security of these limitations. Create a blockchain security model to ensure that all necessary safeguards are in place to keep your blockchain solutions secure.
Administrators must develop a risk model to apply a blockchain solution security approach. It is capable of handling all administrative, technological, and operational issues. The next step is to evaluate the threats posed by the blockchain solution and create a threat model. Administrators must then develop the security measures that will reduce the risks and threats based on the three categories listed below:
- Implement security measures tailored to the blockchain.
- Use standard security precautions.
- Verify that blockchain business controls are in place.