Are blockchain networks vulnerable to security threats? What are the security risks of the blockchain network?

Dec 30,2022
Are blockchain networks vulnerable to security threats? What are the security risks of the blockchain network?

Are blockchain networks vulnerable to security threats? What are the security risks of the blockchain network? Blockchain and cryptocurrency are two of the most important topics in today's scientific and technological world, and their popularity does not seem to disappear soon. Although you may be familiar with and invest in blockchain cryptocurrencies such as Bitcoin or Ethereum, you may be surprised at the severity of potential security threats to blockchain networks. If you invest in blockchain cryptocurrency or plan to get involved in blockchain network in any form, you must understand the security risks of blockchain network.

Are blockchain networks vulnerable to security threats?

The blockchain network operates on the core principles of decentralization, anonymity and cryptography. This essentially means that there is no single control entity managing the database, but different nodes in the network use consensus protocols to securely execute transactions on the network.

Like any other technology, although blockchain has a transparent and immutable digital ledger, it also has its disadvantages. Blockchain networks are vulnerable to several different types of security threats. This may include network attacks that directly cause financial losses to the blockchain or deceive blockchain users.

What are the security risks of the blockchain network?

Each blockchain network (Bitcoin, Ethereum, Ripple, Cardano, etc.) is vulnerable to different security threats, depending on their operation and configuration methods. The threats listed below can be applied to many different cryptocurrency networks.

1. 51% attack

Perhaps one of the most important characteristics of the blockchain network is that it is immutable - once a record is created, it can never be changed or deleted (at least in theory). The blockchain network is decentralized and depends on the consent of most miners. Any transaction that gets 51% of the votes will be approved and added to the blockchain. 51% of the votes were converted into 51% of the computing power in the blockchain network.

In an ideal situation, we don't have to worry about malicious hacker organizations controlling 51% of the blockchain. But what if this happens and their goal is to cause financial damage to the blockchain network?

In this case, malicious hackers who now control at least 51% of mining computing power can execute fraudulent transactions, reverse existing transactions, double spend and reject any effective non malicious transactions. It is conceivable that this will undoubtedly make the blockchain vulnerable to financial losses.

Fortunately, the financial cost of obtaining the huge mining computing power required for 51% attacks on important blockchain networks such as Bitcoin or Ethereum is more than 10 billion dollars, which makes this situation extremely unlikely. However, smaller and relatively new blockchain networks with limited miners are particularly vulnerable to 51% attacks.

On Ethereum (ETH), Caldano (ADA) and other rights proof networks, 51% of attacks are more difficult because malicious organizations need to control 51% of the mortgage currency, not just 51% of the mining hash speed.

To successfully attack the blockchain network by 51%, malicious organizations first need to control the mining computing power by 51%, and then they must ensure that they can insert the blockchain they want to change at the right time In addition, despite the controversy, "honest" miners can vote to restore the blockchain to its original state after the attack.

2. Routing attacks

Unlike 51% attacks, routing attacks rely on exploiting basic Internet routing infrastructure vulnerabilities. Attackers can use routing attacks to split the blockchain network into two independent networks. The attacker acts as a bridge between the two partitions so that all network traffic is routed through him. This will force the creation of a parallel blockchain. When the attack finally stops, all the blocks in the smaller partition will be discarded, resulting in the transaction being discarded and refusing to receive any mining rewards.

Similarly, routing attacks can also be used to delay the delivery of mining blocks for at least 20 minutes, while being completely undetected on the Bitcoin network. This may lead to double expenditure or waste of mining capacity.

In theory, routing attacks can be realized by intercepting network traffic, hijacking border gateway protocols, or even intercepting network traffic received through autonomous systems. Bitcoin is particularly vulnerable to partition and delay attacks caused by routing attacks.

3. Sybil attack

Sybil attack can be considered as one of 51% attacks. These attacks usually involve attackers creating fake virtual nodes on the blockchain network. Attackers can use these virtual nodes to obtain 51% of the majority and conduct malicious transactions on the blockchain.

Blockchain tends to adopt consensus protocols, such as proof of equity (PoS) and proof of work (PoW), to reduce the possibility of witch attacks. Although these protocols cannot completely prevent Sybil attacks, they make them very difficult because it requires a lot of money to obtain hardware to carry out large-scale Sybil attacks on PoW or PoS networks.

4. Blockchain user endpoint vulnerability

Like any other online trading service, the blockchain network is vulnerable to the impact of the security overlap of user interface devices such as computers, tablets and smartphones. Attackers who want to access your blockchain wallet may continuously monitor your online activities or use malware to scan your files to find your wallet's private key.

Make sure that the private key of the encrypted wallet is encrypted and that it is not saved as a plain text file. In addition, it is always recommended that you install secure antivirus software that provides spyware protection.

In general, the above content introduces in detail whether the blockchain network is vulnerable to security threats, and what are the security risks of the blockchain network. I believe you will understand it after reading it. In short, the idea of earning a lot of money through Bitcoin or Ethereum's encryption investment is very exciting, but you need to ensure that you understand the potential blockchain security threats and how they affect your potential investment. Also, remember to invest safely. Do not share your private key with anyone through the Internet, and avoid interacting with anyone who provides free encrypted coins.