Blockchain Insecurities And How To Avoid Them?

Blockchain Insecurities And How To Avoid Them?

When we talk about blockchain we often refer to it as an incorruptible technology which keeps our data protected. In fact, it truly is more secure than traditional centralized systems and significantly faster and smoother. However, according to Pini Raviv, a software engineer, distributed ledgers are still susceptible to fraud and hacking. We just have to look closer at the blockchain’s infrastructure in order to understand how this is possible.

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When we talk about blockchain we often refer to it as an incorruptible technology which keeps our data protected. In fact, it truly is more secure than traditional centralized systems and significantly faster and smoother. However, according to Pini Raviv, a software engineer, distributed ledgers are still susceptible to fraud and hacking. We just have to look closer at the blockchain’s infrastructure in order to understand how this is possible.

How does blockchain’s technology work? It uses consensus mechanisms, which make sure all added blocks have only one version, therefore splitting does not happen. An example of a consensus mechanism is the Byzantine mechanism. When the validator creates a new block in the system the majority of nodes has to accept it, otherwise it will not enter the blockchain. If you want to add a new chunk of information, it has to be approved by the majority, but what happen when the majority is corrupted?

This is the core problem in blockchain safety. Since the whole system is in a way controlled by the decisions of the nodes, whoever is controlling them, governs the whole blockchain network. In case someone plays a role in nodes’ decision taking process or swamps the system with his own nodes, he might prevent the addition of new blocks. Furthermore, he is now running the whole network since he decides what enters the blockchain and what does not.

However, if the nodes are secure, the whole blockchain is. So, how do we protect nodes from attacks? Using firewalls and malware protection software can easily do the trick. What about potential flooding? There are applications like Incapsula, which protect from unwanted traffic and DDoS or XXS attacks.

It is of great importance to protect nodes, in spite of speculations that blockchain is impossible to compromise. The blockchain and cryptocurrency industry is growing ridiculously fast and it is valued $243 billion dollars. Imagine what would happen if suddenly someone hacks the incorruptible technology. Financial losses will be gross. The distributed ledger technology surely has a potential in all walks of life, but if people are to trust it, even more, put their money in it, we got to make sure the system doesn’t let them down.

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