Blockchain almost impossible to hack

Blockchain is becoming an important part of the financial sector. Encryption is the reason behind security. The transaction records are linked to the previous records on a distributed ledger. This means that the new information block has been merged with previous blocks. This makes it almost impossible for the hacker to hack it. The hacker must change the entire chain. No one can temper the data as it is interconnected.

Blockchain-adjacent processes can be hacked

To give more clarity on this, the experts say that the blockchain cannot be hacked, but blockchain-related processes can be hacked. Like, transactions done through blockchain can be leveraged. Likewise, blockchain assets can be stolen.

There are two types of blockchain: public blockchain and private blockchain. Public blockchains allow anyone to join and remain anonymous. While Private blockchain requires identity to verify the privileges and can allow known organizations to join. Fraudsters can attack using phishing attacks, routing attacks, sybil attacks, 51% attacks.

Data shows that blockchain hacks that have occurred in recent years on centralized exchanges. The hackers can access the digital assets through an exchange network or platform. For example, Bitcoin is decentralized, which means no one can control, and therefore no one can hack, but when we put the asset in exchange, the location can be exposed to hackers.

Revealed by many, verified ownership models are another way to hack the blockchains. In a given blockchain, the integrity of transactions is supported by the community of owners. If one owner gains control of more than 50%, anything can be done.

This is challenging in reality as the attacker needs a lot of time even after taking command of over half of the nodes. The other form of attack known as sybil attack where people create their fake identities but still cannot fulfill the 51% blockchain strategy.

The new changes like the smart contract make the blockchain even more secure. Smart contracts help put data and code executions on the blockchain. It has become more and more popular these days. Blockchain cannot be hacked, but the smart contracts can be exploited and if it is placed on the blockchain, it will hack the blockchain.

The human aspect cannot be neglected. Better understand it as social engineering. If someone uses the public WiFi and sends the crypto keys over that network, someone can steal your crypto, so this is not a blockchain hack either.

So whenever you hear about blockchain hacking, be aware that it is not a blockchain hack, but it is related to the ways we handle the blockchains. Blockchain itself is very resilient. Blockchains are very difficult to hack and are therefore less vulnerable to cyber attacks. Therefore, stolen keys and code exploitation are the two very basic reasons for blockchain hacking.

For more security control, the specifications are secure communication, data privacy, access and security management, key management. These are some stated security measures.

Last post by Ritika Sharma (see all)