Despite the benefits that blockchain technology brings to our life, especially in cryptographic security, there still exists a lot of other side problems. This topic is about top blockchain security issues every project needs to avoid.
Computing power is quite important to gain majority control over the Hashrate of a blockchain through malicious entities. As a result, compromised blockchains can lead to the reversal of transactions along with double-spending. In 2018, three well-known crypto platforms suffered from 51% attacks. Furthermore, businesses lose around $20 million annually in recent times due to 51% attacks.
Careful about certain measures is the only way that can let you avoid blockchain problems caused by 51% attacks. For example, you can improve the monitoring of mining pools and ensure a higher hash rate with limited use of the Proof-of-Work (PoW) consensus mechanism.
Blockchain Endpoint Vulnerabilities
The vulnerability of blockchain endpoints is Another notable example of security risk in blockchain security correctly explained. The security of the blockchain is the discussion of the town. However, addressing the security concerns of endpoints for blockchain transactions is the last choice cause no one is interested in them.
The blocks are safe from hackers. On the other hand, wallet accounts are not secure. Furthermore, many third-party vendors are also important in facilitating blockchain transactions. Some of these third-party providers include blockchain payment platforms, payment processors, and smart contracts. Such types of third-party blockchain providers can increase vulnerability due to weaker security in apps and websites.
The next prominent concern to the security and privacy issues of blockchain technology refers to routing attacks. Blockchain networks and applications depend on huge volumes of data transmission in real-time. Now, hackers can easily intercept data in transit to internet service providers. Blockchain participants cannot easily find the threat of routing attacks because everything seems normal. Routing attacks are programs that allow users to leak confidential data or obtain monetary gain that doesn’t send any alert to network participants. Therefore, it is clear that routing attacks can be detrimental as they can cause significant damage before being detected.
In case you are asking about blockchain security, you should first think about phishing attacks. Phishing is one of the most common deception techniques used by hackers. It’s a phishing attempt to get the user’s credentials. By masquerading as an authentic, authoritative source, hackers send emails to wallet key owners to steal the data.
Such types of emails request information about the user’s credentials through forged hyperlinks. Once hackers can access a user’s credentials and sensitive information, the user, as well as the blockchain network, will be ready for further attacks.
In summary, like a coin has two sides, blockchain has many benefits that can’t be denied besides security issues. Look on the bright side, knowing about the blockchain security issues will help the investors avoid losses.
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