Cybersecurity is a huge concern today as cyber-attacks are rising every day. Therefore, people look more for securities whenever a new technology or application emerges. Blockchain technology was initially developed to back cryptocurrencies like Bitcoins and is comparatively new in the technology market. However, it has gained huge popularity in the past few years and people have realized its potential beyond cryptocurrencies. Still, many people raise questions about the security provided by this new technology. This article is to dig into the security features of blockchain.
Let’s start with blockchain. Blockchain technology is referred to as a DLT or Distributed Ledger Technology created to reinforce confidence and trust in the current environment. It is a decentralized ledger system distributed and duplicated across the entire network of interconnected computer systems. Every designated member or node in the network gets access to information. They are also allowed to view, share, and record transactional data encrypted on the blockchain.
Now let’s come back to blockchain security, which is an entire risk management system made for blockchain networks. It integrates cybersecurity frameworks, assurance services, and the best techniques to avoid the risk of cyber-attacks and fraud.
Data structures of blockchain technology have in-built security features as they are rooted in decentralization, cryptography, and consensus principles. Every new information block will be connected to the other previous blocks, which eliminates any chance of tampering. Every transaction within a block will be verified and confirmed through authorized users or consensus mechanisms. Thus, it ensures that all the transactions are accurate and true. So there won’t be any failure points and users have no permission to tamper transaction records.
Challenges In Blockchain Security
Do not misunderstand blockchain technology to be perfect. Cybercriminals can still find ways to manipulate the vulnerabilities of blockchain and create damage for the users. Some common ways used by hackers to get into blockchain technology are as follows.
- Routing Attacks
Several data transfers will be performed on blockchain technology in real time. Hackers who are resourceful can interrupt this data when it is on its way to the Internet Service Provider or ISP. Users of the blockchain won’t be able to find any amiss in such processes.
- 51% Attacks
Public blockchains working on a large scale require huge computing power for mining. But a group of strong unethical miners can easily take the whole control of the ledger by successfully bringing together all the required resources to get more than 50% of the mining power of the blockchain network. However, private blockchains are safe from 51% attacks.
- Sybil Attacks
These types of attacks got their name from a book related to multiple personality disorder. The target network will be filled with a massive amount of fake or false identities in Sybil attacks, leading the system to crash.
- Phishing Attacks
Most hackers use this traditional hacking style and it is applicable for blockchain too. It is a scam in which cyber criminals try to send fake emails that look convincing to the wallet owners, requesting their credentials.