Blockchain is a technology that is well-known for its impregnable security, but to ensure its safety it’s crucial to know the basics of blockchain security and how it works.
In this article, we will describe what is blockchain security and what are the known concerns areas in security.
What is Blockchain security?
The decentralized nature of blockchain ensures that if a hacker needs to get entry into the network, he has to hack every single node, which is an extremely time-consuming and difficult task. The cryptographic hashing feature of blockchain security lets every single block in the chain be unique while being linked to the previous block. This security mechanism prevents any attempt to change data over the blockchain, as altering a record will also require the hacker to indulge in an unviable task of changing data over all preceding blocks.
Blockchain development talks about decentralization, immutability, fostering trust, and more importantly security, but it is worth mentioning that there are some potential vulnerabilities, which if not known can’t be addressed. So, let’s have a look over those potential vulnerabilities that are faced in blockchain security.
What are the different types of Blockchains?
Blockchain security depends upon the type of blockchain we are dealing with and it is worth knowing that there are 4 different types of blockchains:
Public
Public blockchain platforms are open for anyone sort of platform, where anyone can view and create transactions. These are generally the first blockchain platforms to exist and are much slower in comparison to other counterparts. Public blockchains are generally more immune to 51% of attacks, as they are much more secure than private blockchains.
Private
Private blockchain platforms let only a few approved participants have the privilege of performing a transaction or even accessing it. These permissioned platforms are much faster in performing transactions, which are often preferred by enterprises and any such organization which puts security and privacy at the helm. Breaching a private permissioned blockchain platform is very difficult, but due to their reliance on a single entity for maintaining security, they have been considered vulnerable in terms of security.
Hybrid
As the name suggests, these blockchain platforms are a combination of both public and private platforms, so that they can offer the best of both. A hybrid blockchain can be customized regarding who can join and take part in doing transactions. Well, there are certain drawbacks of a hybrid blockchain platform like maintaining user preferences can be difficult for the central managing authority and this can lead to a security issue.
Consortium
Consortium-based blockchain protocols consist of pre-approved participants who are known by a central authority. These types of blockchain protocols are only found to be in use by businesses wanting increased security in lieu of speed and decentralization.
Blockchain security and known challenges
As we told earlier, no technology is perfect as every technology keeps evolving and blockchain too has its own share of vulnerabilities. Here we will mention those four ways in which hackers can cause harm to blockchain networks.
Phishing attacks
This is a classic hacking tactic used by hackers to con wallet owners, where they are asked to share their account details. Generally, cyber-criminals initiate this modus operandi through emails that look convincingly real and genuine.
Routing attacks
Routing attacks are usually made by intercepting the data which is on its way to ISPs, as blockchain being a data-intensive technology deals with large volumes of data performed on a real-time basis. These attacks are much more difficult to detect and to prevent them, one must hire the best crypto auditors.
Sybil attacks
To engage in a Sybil attack, hackers choose a target network and flood it with an overwhelming number of false identities so that ultimately the system crashes.
51% attacks
Public blockchain networks are known for their resource-hogging computing power to perform mining and hackers gain control over it by bringing together enough resources. As the name suggests, a group of hackers hijacks the network by acquiring computing power of more than 50%, but here’s a catch such tactics can’t be employed in private blockchain networks.
Conclusion
Blockchain is a promising technology, having lots of things to offer but it is in its nascent stage. Security is an important aspect of every technology and blockchain with its great emphasis on security and decentralization needs to be extra vigilant. A senior blockchain developer from Rejolut says that, as the adoption of blockchain increases, the rate of security attacks too will increase simultaneously. So, a piece of advice from him is that businesses understand the underlying risks and start taking proper steps like hiring blockchain experts to root out all the vulnerabilities.
