How to Avoid 5 Annoying Blockchain Security Issues

Consensus, decentralization and cryptography are used to guarantee transaction trust in the blockchain. However, a number of blockchain security vulnerabilities have arisen due to a lack of proper implementation of the underlying technology.

Without a doubt, interest in blockchain technology has increased recently. In addition to current uses in healthcare, real estate, smart contacts, and other fields, cryptocurrency was its original application. Using blockchain technology, data is collected and stored in groups called “blocks”, and each block has a maximum data capacity.

The brilliantly chosen name “blockchain” refers to the fact that when a block is full, it is linked to the previous full block, forming a chain of data. The technology has been a great illustration of how security principles in money transfers and information transfer are changing.

It offers a unique data structure in addition to integrated security measures. Consensus, decentralization and cryptography – which ensure trust in transactions – are the foundations of the blockchain. However, poor technology implementation has led to a number of blockchain security issues.

Security for each type of blockchain

Understanding the distinction between public and private blockchain security is necessary before proceeding with the discussion of blockchain security. Blockchain networks can have a number of effects in terms of participation and data access capabilities. As a result, blockchain networks can be classified in two ways.

Depending on the rights needed for membership, blockchain networks can be either private or public. On the other hand, whether a blockchain network is permissioned or permissioned determines how participants can access it.

• Any user can join public blockchain networks, which are open and maintain the anonymity of participants.
• Identity is used in private blockchain networks to validate membership and access rights. In addition, they limit participation to well-known organizations only.

What you can do about the top five Blockchain security issues

Many individuals are right to believe that blockchain is inherently secure. Blockchain is undeniably useful for businesses, but it also has significant limitations due to particular security concerns. Here are the five biggest blockchain security issues, as well as remedies.

1. What are 51% of attacks and how can you prevent them

Miners play an important role in verifying blockchain transactions, enabling them to grow even more. A 51% attack is perhaps the most feared danger in the blockchain industry. These assaults are more likely in the early stages of the chain, and a 51% attack does not apply to commercial or private blockchains.

A 51% attack occurs when a single person or group (malicious hackers) accumulates more than 50% of the hash power and gains control of the entire system, which can be devastating. Hackers can change the order of transactions to prevent them from being confirmed. They can even reverse previously executed transactions, leading to double spending.

3 tips to avoid 51% attacks:

• Make sure the hash rate is higher.
• Improve mining pool monitoring.
• Avoid using consensus methods that require proof-of-work (PoW).

2. How can you handle phishing against blockchain networks

Attacks on blockchain networks by phishers are increasing and this is causing significant problems. In most cases, phishing attempts are made to target individuals or members of a company.

In a phishing attack, the hacker’s goal is to obtain the user’s login information. They have the ability to email the owner of the wallet key that appears to be genuine. The user is asked to submit their credentials through a fake URL linked to the email.

For both the user and the blockchain network, having access to a user’s credentials and other sensitive information can lead to damage for both parties. Follow-up abuse is often a problem for them.

7 tips to prevent phishing attacks:

• Install a certified add-on to warn you about dangerous websites to increase your browser’s security.
• If you receive an email asking for login information related to the issue, check with your software partner.
• Stay away from public Wi-Fi networks when making critical financial transactions, such as using an electronic wallet.
• Take a moment to check if your hardware and software are up to date.
• You should not click on the link unless you have read it all the way through to completion. Try typing the site’s URL into your browser instead of clicking on any of the links in the article.
• Malicious link detection software and reliable antivirus software should be installed on a computer to increase security.
• Educate yourself and your employees about the risks of phishing

3. What are routing attacks and how can you mitigate them

Next in line for questions about blockchain security and privacy is the emergence of new types of routine attacks.

You can access some of the latest research statistics on routing attacks here in Maria Apostalaki’s article “Hijacking Bitcoin: Routing Attacks on Cryptocurrencies”.

Large amounts of data must be moved in real-time across a blockchain network for it to work. By using an account’s anonymity, hackers can snoop on data as it travels across the internet.

Blockchain participants are often unaware of a routing attack since data transfer and activities continue as normal in the event of an attack. Many times these abuses will reveal private information or steal money without the user realizing it.

4 tips to prevent routing attacks:

• Encrypt data at rest, in transit and in use using current data encryption protocols.
• Prepare yourself and your employees for the dangers of data security breaches.
• Change your passwords regularly and use strong passwords.
• Use certificates, implement secure routing systems.

4. What are Blockchain Endpoint Vulnerabilities? How can you prevent them?

Another major issue in blockchain security is the vulnerability of blockchain endpoints.

A user’s computer or mobile phone is the endpoint of the blockchain network, where they interact with it. To get hold of a person’s key, hackers can see how they behave and then target certain gadgets. Blockchain security is plagued by a number of concerns, including this one.

3 tips to prevent endpoint vulnerabilities:

• Do not store the blockchain keys as text files on your PC or mobile device.
• Periodically review the system and note when, where and which devices were used.
• Take the time to install antivirus software on all your personal computers and other electronic devices.

5. What is Sybil Attack, what can you do to prevent it

In a Sybil attack, hackers create a large number of fake network nodes. Using these nodes, the hacker is able to achieve majority consent and interrupt the chain’s transactions. As a consequence, a large-scale Sybil attack is only a 51% attack.

2 tips to prevent Sybil attacks:

• Be on the lookout for multiple nodes that only forward blocks from a single user and keep an eye on them.
• Make sure you use the right algorithms for consensus.

These algorithms may not stop all Sybil attacks, but they certainly make it harder for the bad guys to carry them out.

In Conclusion

Although blockchain has several security flaws, cybersecurity experts can do a lot to address them. Blockchain deployments will be most secure if overseeing IT personnel have honed their analytical and technical skills.

What are your experiences with Blockchain security? Leave a comment below or message [email protected] and let me know!