Block chain technology’s popularity has soared and people are discovering that blockchain has uses that go beyond cryptocurrency. This newfound popularity, naturally, begs the question of blockchain’s safety and integrity

Blockchain security is a complete risk management system for blockchain networks, incorporating assurance services, cybersecurity frameworks, and best practices to mitigate the risks of fraud and cyber-attacks.

Blockchain technology's data structures have inherent security qualities because they are based on consensus, cryptography, and decentralization principles. Each new block of information connects to all the previous blocks in a way that it's nearly impossible to tamper with. In addition, all transactions in a block get validated and agreed on by a consensus mechanism (authorized users), guaranteeing that each transaction is true and accurate. Thus, there is no point of failure, and a user can’t change transaction records.

However, blockchain security goes even beyond its inherent security characteristics.

BLOCKCHAIN SECURITY CHALLENGES

There are ways that cyber criminals can manipulate blockchain’s vulnerabilities and cause severe damage. Here are four ways that hackers can attack blockchain technology.

•Routing attacks:

Blockchains depend on immense data transfers performed in real-time. resourceful hackers can intercept the data on its way to isps (internet service providers). unfortunately, blockchain users don’t notice anything amiss.

•51% attacks:

Large-scale public blockchains use a massive amount of computing power to perform mining. however, a group of unethical miners can seize control over a ledger if they can bring together enough resources to acquire more than 50% of a blockchain network’s mining power. private blockchains aren’t susceptible to 51% attacks, however.

•Sybil attacks:

Named for the book that deals with multiple personality disorder, sybil attacks flood the target network with an overwhelming amount of false identities, crashing the system.

•Phishing attacks:

This classic hacker tactic works with blockchain as well. phishing is a scam wherein cyber-criminals send false but convincing-looking emails to wallet owners, asking for their credentials.

BLOCKCHAIN SECURITY EXAMPLES

These are examples of how companies and organizations are conducting blockchain security.

•Mobilecoin

This California-based cryptocurrency company is developing a secure, user-friendly cryptocurrency for businesses that cannot afford to implement ledger security measures independently. Mobilecoin’s cryptocurrency replaces third-party transaction vendors, keeping all the transaction data encrypted at both ends. The product works with Facebook Messenger, WhatsApp, and Signal.

•Coinbase

Here’s another California-based cryptocurrency company. Coinbase is an exchange for selling and purchasing digital currency. Running entirely on encryption, Coinbase stores wallets and passwords in a secure database. Employees must undergo a rigorous background check to ensure cryptocurrency safety.

•J.P. Morgan

J.P. Morgan is the largest and one of the most popular financial institutions in the United States. It has developed an enterprise-focused version of Ethereum called Quorum, using blockchain technology to process private transactions. J.P. Morgan uses smart contracts on their Quorum network to create transparent yet cryptographically assured transactions.

•Lockheed Martin

This US-based defense contractor is the first company of its kind to implement blockchain security. Lockheed Martin is working with the cybersecurity firm Guardtime Federal to institute blockchain cybersecurity protocols in engineering systems, software development, and supply chain risk management. Lockheed Martin’s goal is to use blockchain to protect every step of its weapon development systems.

•Cisco

This California-based tech giant believes that blockchain is ideally suited for the Internet of Things (IoT) because the inherent ledger technology does away with single points of failure and secures vital private data with encryption. This idea is significant since the Internet of Things has been growing steadily. If blockchain technology becomes the preferred IoT network, this will boost blockchain’s visibility and use. Of course, it doesn’t hurt to have a big IoT player in your corner!

•Hashed Health

This Tennessee-based healthcare innovation firm wants to help the healthcare industry to implement blockchain technology. The firm consists of Hashed Collective, Hashed Enterprise, and Hashed Labs, and each entity focuses on different aspects of blockchain. Hashed Health has partnered with many hospitals and healthcare companies to build secure digital blockchain networks dedicated to patient information sharing and confidential internal communication channels.

While blockchain technology offers robust security features, it's essential for stakeholders to proactively address potential risks, stay informed about emerging threats, and continuously improve security measures to maintain a secure blockchain environment.