Thinking blockchain is Secure could be a dangerous mindset as nothing is completely secure. Business visionaries, financial specialists are progressively inspired by blockchain innovation due to its capability to change the way organizations interact and collaborate with their clients, different organizations, and controllers. Blockchain is also considered resilient to the Cyber Attacks.
Indeed, blockchain is inherently secure. It uses ground-breaking cryptography with the provision of ownership of an address and the crypto-assets related with it, through a blend of public and private keys, made up of combination of random numbers and letter.
In spite of the numerous cybersecurity benefits intrinsic in blockchains, the innovation, similar to some other, is liable to cybersecurity risks, the risk includes those resulting from human errors, it includes Software coding errors, and errors derive from the flaws in participants’ information security practices. Identity based attacks in which an intruder/attacker corrupt the consensus mechanism engaged by a blockchain through gaining control over a majority of the blockchain’s nodes.
Blockchain is unquestionably secure but few previous hacks can prove the importance of Security for Blockchain-
- Tether – Tether, the company behind a dollar-pegged cryptocurrency widely used in the market’s exchange trade, is claiming that its systems have been hacked and that $30 million worth of its tokens have been stolen.
- The Dao – Blockchain based venture capital, The DAO – an Ethereum Project, hacked for $60 million.
- COINWALLET – Application was susceptible through database injection such as SQL Injection, lack of input sanitation, unknowingly organization claim that no coins were lost, result was CoinWallet shut down.
- Coindash – Israel-based Coindash, a cryptocurrency portfolio management platform due to formally launch within the next 24 hours, was one such victim of a compromised ICO.
Above statistics clearly specifies that the blockchain can also be compromise, Blockchain is Secure but have you thought about the crypto wallet & product built on top of it. In 2017 alone, Blockchain startups lost USD 760 Million Dollars in ICO Hacks. Malicious users target the token selling websites with the lack of security, and phishing is their other weapon to compromise the ICO.
When we talk about the blockchain Security, Smart contract code play an important role and organizations must think about their Smart Contract code security because, there are the maximum chances of human errors and Poor contract code can cause huge business loss.
Here are the popular Smart-contract vulnerabilities: –
- Stack overflow and underflow.
- Replay attack.
- Short address attack.
- Reentrancy attacks.
- Reordering attack.
All in all, blockchain technology has the potential to revolutionize many aspects of various sectors. Not only it can improve the transparency and digitalization for organizations but also makes it resilient to almost every kind of cyberattack. Even though blockchain is highly secure, people should not forge a dangerous mindset regarding it as nothing is completely secure. Business owners and investors have really taken interest in blockchain due to its ability to transform different entities’ interactions with other organizations, customers, and higher authorities. Hacks are still a possibility when it comes to blockchain due to vulnerabilities in smart contract code or with token selling websites. However, if the right steps are taken, there won’t be any need for worry. All those actions require specialized knowledge that is difficult to find yet essential for businesses looking to use this technology efficiently. Securitybulls offer services precisely to help companies identify risk factors related with their blockchain and take preventive actions accordingly. With this call-to-action we would like to urge all business owners who are thinking of utilizing Blockchain technology in their infrastructure, start taking preventive measures now by availing trustworthy services which allows safe adoption of this powerful innovation!
