Since 2009, the popularity of blockchain technology has increased massively, primarily due to the introduction of Cryptocurrency. Many people consider it as the staple of efficiency, quickness, and security. In this article we dis
We can definitely standby behind the first two points.
However, the third one?
Well… no, not so much.
Compared to the traditional economic system, blockchain technology is definitely safer and more secure. However, there are still loopholes available in the infrastructure that affects it pretty profoundly. Here’s what you need to know about it.
Table of Contents
Blockchain And Security
The journey of blockchain technology began since the year of 1991. Since then, it has given birth to many brand-new cryptocurrencies, including Bitcoin, Dogecoin, Ethereum, etc.
However, blockchain is, in essence, a decentralized digital currency. Therefore, no one can regulate or oversee the whole project and make changes to it.
Yes, you have understood it correctly.
Even your country’s government or the administrator of a platform will not be able to do anything on the technology.
Due to this reason, it becomes almost impossible for someone to hack your system or make substantial changes to it. This is why blockchain is considered to be very secure, especially when it comes to hacking or something related to it.
However, that’s not entirely true.
If you are capable enough, you can, indeed, hack the system and get whatever benefits possible from the same.
Let’s keep reading to learn more about it.
How Can Blockchain Be Hacked?
Since blockchain is pretty secure, many people have already tagged it as the “unbreakable” technology. However, according to various Top Affiliate Networks, that isn’t correct at all. It can be hacked in multiple ways. The following are a few of them.
51% Attacks
During the verification procedure, a user (also known as a miner) will review everything to see if the transaction is genuine or not. However, if one or more hackers join in the process, things will not take too much time to go south.
For instance, they can create a new environment where the results of specific transactions will not be reflected. It, in turn, will allow them to create an entirely different set of transactions and tag it as the correct version of blockchain. The system will also enable them to double-spend the overall amount of Cryptocurrency.
The 51% attacks are, in truth, more common amongst the smaller scale blockchains. However, in some cases, you may find it in the more complex ones as well.
Insufficient Security of the Applications
Many blockchain hacks generally occur due to the low-security efficiency of a certain application. Due to this reason, no matter what you are exchanging, make sure to evaluate if the medium you’re using is secure or not.
You can understand this by going through –
- Learning about the security exchange procedure.
- Checking the required time to complete a transaction.
- Verification infrastructure of the application.
Errors In Creation
Sometimes, while someone is creating a blockchain environment, they may end up making an error in the process. It, in turn, can affect the security system of the application and make it a little more vulnerable than usual. This issue is much more common in larger or more complex blockchain environments.
Anyway, many hackers, after logging in, tend to look for these vulnerabilities closely. If they find something, they’ll exploit the same and take out the cash in any way possible.
For example, your financial asset might get stolen, or you may end up clicking on a spam link and lose your personal information.
Blockchain Hacking – A Disaster-Class
Although you may not believe it, blockchain hacking has become quite prominent, especially since 2017. It usually happens due to the vulnerabilities these platforms and the related apps possess. However, still, the 51% attacks are known to be pretty eminent in this field.
So, what’s the solution?
Well, if you want to be safe from these attacks, you will have to be extremely cautious.
Besides, make sure to check who you are dealing with, their transaction history, and much more. This way, it will be possible for you to take care of your exchanges and reduce the risk of getting stolen by someone else.
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