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June 8, 2023
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Blockchain Security: Challenges

Blockchain technology produces a data structure with inherent security, offering an unprecedented opportunity to innovate security systems with a new architectural mo

Blockchain Security: Challenges

Blockchain technology produces a data structure with inherent security, offering an unprecedented opportunity to innovate security systems with a new architectural model. Many different and complex issues present today can damage the security of blockchain networks. In recent years, it has made substantial progress regarding development and adoption by organizations and industries but still needs to be immune to threats and attacks. The blockchain community has debated how to change the protocol only if necessary. Some researchers and security experts believe it is required to change the protocol. Some others want to keep the existing rules that have existed for years because they see only a reason for changes if there is a dire need for them.

1. Vulnerabilities at Blockchain Endpoints

The most popular cryptocurrency in use today is one of the blockchain networks being attacked. This study analyzed a list of vulnerabilities that led to the theft of Bitcoins and other cryptocurrencies. This report is based on Blockchain analysis data collected. There have been over a hundred attacks against Bitcoin in recent years, where more than $4 million worth of Bitcoins have been stolen. It has created a development platform and a programmable blockchain that allows the creation of smart contracts. Smart contracts can be used for applications like escrow services or multi-signature wallets.

2. Phishing Attacks

One of the most common attacks hackers use to breach a network is phishing. Phishing attacks are a type of social engineering attack where the hacker tricks someone into giving up information about their account. By impersonating someone in authority, a malicious hacker will try to get people to give up some personal information and then try to get free Bitcoins on their account. Phishing emails can be hard to distinguish from real messages because they look similar. Attackers are continuously improving their methods and making them harder to detect by making it more difficult to determine their emails from legitimate ones.

3. Lack of Adoption

The need for adoption is one of the most significant threats to blockchain security. Most people need to understand the importance of blockchain technology because it has yet to be widely used. Consensus rules used in

blockchains are very complicated, so most people only get involved in consensus changes if there’s a major problem with the network. The level of security that blockchains offer is only known to a few people, and the majority still need to understand how it works.

4. Routing Attacks

Routing attacks are the most common type of attack that occurs in blockchain networks. They are happening because blockchain uses P2P architecture for communication between nodes. Most decentralized systems do not have a separate internet connection, making them vulnerable to standard network attacks. In routing attacks, attackers can get into the network by hijacking a node or fooling nodes into relaying malicious messages. It uses a decentralized network with various nodes connected so that each node knows about other nodes and verifies transactions through the web.

5. Sybil Attack

A Sybil attack is when an attacker tries creating many identities in the blockchain network to have more influence in decision-making. Governments looking into implementing blockchains into their systems have noticed this as a critical problem, and they are currently trying to solve it using different techniques. An attacker can use this to gain control of the network by convincing other valid users that their identities are real. A blockchain network that uses a proof of stake can be used as an identification system that verifies nodes’ identity and importance in the network.

6. The Rising Cost of Blockchain Implementation

Even though it is believed that the cost of maintaining a blockchain network in the future will be reduced after the successful implementation of blockchains, it still has a high price. It usually requires more expensive computer equipment, but not all companies can afford this investment. Running blockchain networks on large computers is very expensive because it needs machines with specific features like high processing speed and faster communication between them.

Organizations need more resources to secure blockchain networks. Some proven vulnerabilities and types of attacks could make the network vulnerable. Thatcan be solved by increasing the adoption rate and awareness among people.

Blockchain Security: Challenges

Volodymyr Khalaburskiy has been working at iTrustInc for 2 years. Helping companies in building trusted and secure Web3 blockchain ecosystems.

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