Is Blockchain Vulnerable to Cyber Attacks?
The foundational technology of the fourth industrial revolution, blockchain, blurs the lines between physical and digital places. By enabling decentralized digital change, it undermines established businesses and creates new inventive opportunities.
What is blockchain and its potential?
One of the most important technical advances of the last ten years is blockchain. Blockchain is a type of digital ledger technology that makes record keeping safe, open and autonomous. Essentially, it is a database that is stored across a computer network as opposed to being kept in one place. Cryptography, which is used to guarantee the confidentiality and integrity of the data stored on the system, is the foundation of blockchain technology. There are many possible applications for blockchain technology, including cryptocurrencies, voting systems, supply chain management, and more. Blockchain is quickly emerging as a key tool for achieving this goal because it offers ways for organizations to securely share data and exchange value, according to 61% of businesses.
Market strategy behind blockchain:
Due to the unique features of blockchain technology, the use cases are growing. By 2030, the worldwide blockchain technology market is predicted to be worth $1.43 trillion, growing at a compound annual growth rate (CAGR) of 85.9%.
An effective use of blockchain is to increase the efficiency of the supply chain by tracking goods in a transparent and fast way. Blockchain also makes it possible to develop fresh models and methods that pave the way for Web3 apps.
Major cybersecurity threats to blockchain
Blockchains have complex architectures with many layers, including networks, endpoint clients, smart contracts, and consensus. Cyber attacks often target these layers, exposing a number of vulnerabilities. A few risks associated with blockchain are discussed below:
51% Attack – A 51% attack occurs when an organization or group has control over the majority of the computing capacity of a blockchain system, giving them the ability to influence the system.
Sybil attack – To take over a blockchain network, an attacker will establish a series of fictitious identities or nodes.
Smart Contract Vulnerabilities – Smart contracts are blockchain-based applications that may have weaknesses that attackers can exploit.
Malware and phishing attempts – These methods can be used to obtain passwords or private keys, giving attackers access to blockchain accounts.
Distributed denial-of-service (DDoS) attack – Attacks known as distributed denial-of-service (DDoS) can be used to overwhelm blockchain nodes and impair the network’s ability to operate.
Insider attacks – Insider attacks occur when a trusted user or employee of a blockchain network uses their privileges to engage in malicious behavior.
The security of a blockchain depends on the specific implementation and design of the system, as well as how it is used. Some of the potential security benefits of blockchain include:
Decentralization – Decentralization can make it more challenging for one group to influence or dominate the system. Blockchain networks are decentralized.
Cryptography – Blockchain protects the integrity of the data stored on the system using sophisticated cryptographic algorithms.
Immutability – Data stored on a blockchain cannot be removed or changed once added, making it reliable and tamper-proof.
Disclaimer
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
