Blockchain technology has gained a great deal of attention in recent years due to its tamper-proof characteristics and robust security. It is also expected to grow by 82.8 percent per year by 2030, exceeding 1.2 billion US dollars. Blockchain technology, however, is vulnerable to a number of cyberattacks and vulnerabilities. It demonstrates the critical importance of strong blockchain security and an efficient management system for ensuring both security and optimal functionality. Let’s find out more about blockchain security, its security vulnerabilities, and how to prevent blockchain security breaches.
Table of Contents
What is blockchain security?
“Blockchain security” means taking measures to prevent hacks, breaches, and unauthorized access. Blockchains are decentralized, distributed ledgers that protect data by keeping it unchangeable and untouchable. Blockchain networks are not completely secure, despite their built-in security safeguards.
The vulnerabilities associated with blockchains are quite common, such as DDoS attacks, smart contracts, malicious nodes, private key protection risks, and 51% attacks. Diverse security measures, such as consensus protocols, encryption techniques, and multi-factor authentication, are employed by blockchain networks to mitigate these risks.
Blockchain security challenges
Blockchain is believed to be inherently secure by many people. While it’s beneficial for organizations, it has some significant drawbacks due to specific security issues. The following are four ways hackers might attack blockchain technology:
1. 51% Attacks
With Proof of Work blockchains, a group or hacker with over 50% of the network’s computing power can take control. It would be possible for them to manipulate transactions, reverse completed transactions, or prevent new transactions from being confirmed, compromising the ledger’s integrity.
2. Smart Contract Exploits
Code in smart contracts may be exploitable if vulnerable. If hackers find a loophole or bug in the code, they may be able to access funds or disrupt a contract’s intended function.
3. Private Key Vulnerabilities
Having access to private keys means having access to the assets associated with them. Through phishing attacks, malware, or social engineering, hackers may gain unauthorized access to wallets and funds by stealing or compromising private keys.
4. Sybil Attacks
It involves creating multiple fake identities or nodes in order to gain control or disrupt the network. Attackers can manipulate transactions or compromise consensus systems by controlling a substantial portion of network nodes.
The blockchain ecosystem should emphasize robust security measures, continuous monitoring, and user education for the mitigation of each of these attack vectors. Businesses often seek blockchain consulting services for advice on blockchain security. Besides that, here are a few best practices to avoid blockchain security breaches.
Blockchain security best practices
Several methods are used by companies to create a smooth and secure network for their users. However, users also have a responsibility to ensure the security of the entire system. Here are some ways to do it:
● Use a cold wallet
Since cold wallets don’t connect to the Internet, users can secure their private keys. Cryptocurrency wallets are not vulnerable to cyberattacks.
● Keep the Internet secure
Hackers often attempt to hack wifi networks. Hackers can use public wifi networks to steal valuable information by using malware. Users should avoid public wifi networks at all costs.
● Beware of phishing
Nowadays, phishing attacks are common. Clicking on malicious ads should be avoided by users. Also, all the spam emails should be deleted.
● Secure your password
It is always a good idea to use strong passwords that contain a combination of alphabets, numbers, and special characters. It is important to change passwords on a regular basis.
● Device security
Devices should be kept up-to-date. Virus attacks can be prevented by updating the patches and installing the latest antivirus software.
● Penetration testing of blockchains
Blockchain networks should be tested by an ethical hacker to determine whether they are secure and if there are any vulnerabilities.
● Secure keys
Users should secure their keys. A strong cryptographic key should be used. It is not advisable for users to share their keys with others.
● Use a private authorization-based blockchain
Private authorized blockchains are ideal for business entrepreneurs. To access the blockchain, each user must be verified before gaining access.
Final take away
Overall, blockchain technology may revolutionize many sectors, but it also poses significant security risks. Blockchains have the potential to continue being a secure and reliable technology platform in the future if individuals and groups proactively address these issues. Hence, it is a good idea to utilize professional blockchain development services to build a secure and robust blockchain system. The blockchain experts will use secure coding practices and guide you to follow best practices to ensure your blockchain system remains safe and secure.
