How to eliminate security threats in blockchain

Blockchain is a technology that enables the exchange of units of value digitally. It's a distributed software network that functions as both a digital record and a way to transfer assets directly and securely.

It doesn’t matter what kind of blockchain protocol we use, it has the potential to revolutionize old corporate practices. This paves the way for greater levels of government legitimacy. Additionally, it opens up new prospects for success for people.

Here’s a list of what we’ll cover in this Answer:

• Security threats

• Types of security threats

• How to eliminate security threats in Blockchain

What is a security threat?

A prospective adverse action or occurrence that could have a negative impact on a computer system or application. It's made feasible by a vulnerability referred to as a threat in the context of computer security.

A threat can be created by either an intentional act (such as hacking) or unintentional conduct (for example, natural disaster, computer malfunction, and others).

Types of security threats

We will examine a few of the many security threats and their diverse objectives for the computer and the system user in this section.

• Denial-of-Service (DoS): This is a malevolent actor that attempts to render a computer or other devices inaccessible to the users by interfering with normal functioning in a DoS attack. These attacks overload or flood a targeted system with requests until regular traffic cannot be handled. This typically results in DoS to new users.

• Spoofing user identity: Spoofing involves passing off a message as coming from a reputable, well-known source. However, it can be more complex, such as when a computer impersonates an IP address, Address Resolution Protocol (ARP), or Domain Name System (DNS) server. It can also extend to emails, phone calls, and websites. Examples of spoofing include email spoofing, caller ID spoofing, website spoofing, and DNS spoofing.

• Data tampering: Data tampering includes deliberate modification of data through unauthorized channels. Examples include: deletion, manipulation, or editing. This involves data manipulation, where data is transferred through a network of data that is at rest.

• Divulging information: When a website unintentionally makes sensitive data available to its visitors it is referred to as information disclosure, as known as information leaking. This leads to websites revealing information to a potential attacker including information about other users, their usernames, or financial data, the infrastructure of the website, or its technical specifications.

How to eliminate security threats in Blockchain

Even though blockchain technology is based on an immutable record, there are serious blockchain security issues that could threaten the system's basic foundation. Let's examine a couple of the most noteworthy ones and ways of eliminating them.

Phishing attack

Blockchain networks are increasingly the target of phishing attacks. Phishing attempts commonly target people or workers for businesses. One of the most popular baiting methods used by hackers is phishing.

Essentially, it attempts to trick someone into giving over their login information. Owners of wallet keys receive emails from hackers who pose as reliable sources. These emails pose as hyperlinks to collect user credentials. Users and the blockchain network are vulnerable to new threats when hackers obtain user passwords and sensitive data. In recent years, there has been a significant increase in anxiety due to phishing attacks on blockchain networks.

Eliminate this threat

• We are advised not to click any strange-looking or malicious link sent to us via email or text message unless we are sure of its source.

• To improve browser security, we need to add a reliable add-on to our browser that will notify us when websites are unsafe.

• Stay away from open Wi-Fi networks when using an electronic wallet or conducting other crucial banking operations.

• We need to make sure that our software and security system are updated.

51% attacks

When a hacker or a group of hackers accumulate more than 50% of the hash rate and seize control of the entire system, it’s known as a devastating 51% attack. Hackers can change the chronological order of transactions as well as prevent them from being confirmed. Their ability to undo transactions that have been previously completed results in double-spending.

The blockchain relies on miners to validate transactions, which helps the technology advance. The biggest fear of the blockchain industry may be a 51% attack. A 51% attack does not apply to commercial or private blockchains, and these attacks are more likely to happen in a chain's early stages.

Eliminating this threat

• Check to see whether the hash rate is higher.

• Avoid using Proof of work (PoW) consensus.

• Enhance mining pool supervision.

Sybil attacks

This attack bears the name of a well-known novel character. This is because the attacker creates several fictional nodes on the network in this type of attack. The attacker can use these nodes to obtain majority consensus and obstruct chain transactions. Consequently, a massive Sybil attack is nothing more than a 51% strike.

To address issues with blockchain security like Sybil attacks, several blockchains use Proof of Work and Proof of Stake algorithms. While they do not totally stop such attacks, these algorithms only make it impossible for the attacker to carry them out.

Eliminate this threat

• Make use of the right consensus algorithms.

• Observe how other nodes act and search for those that are just transmitting blocks for one user.

Routing attacks

Routing attacks are another significant issue for security and privacy concerns with blockchain technology. Blockchain networks and applications rely on an enormous amount of real-time data flow. Data transmission to internet service providers could be easily intercepted by hackers. Routing attacks' vulnerability to blockchain security resides in their anonymity.

Eliminate this threat

• Use encryption for your data.

• We must make sure to set a strong password and change it frequently.

• Use secure routing protocols (with certificates).

Blockchain endpoint vulnerabilities

A major security issue with blockchain security is the vulnerability of blockchain endpoints. Users can interact with the ledger through electronic devices like computers and cellphones, which function as the blockchain network's endpoint. Hackers can get the user's key by observing user activity on targeted devices. 

The blocks themselves are protected against hackers. On the other side, the wallet accounts are not protected. The use of several third-party suppliers is also essential for completing blockchain transactions. These third-party vendors include payment processors, smart contract platforms, and blockchain payment platforms.

Eliminate this threat

• Be careful while saving your private keys or seed phrase on your electronic devices.

• Install an antivirus on your electronic devices.

• Remember that the websites we visit and connect have access to our information, so be mindful of them.

Conclusion

Finally, it can be stated that blockchain is a really innovative technology that combines the rigorous nature of coding with the process of consensus-building. Although blockchain includes a variety of security flaws, these issues may be significantly reduced with the help of security specialists. To build better networks and systems, it is crucial to be aware of blockchain security flaws so that our blockchain won't become obsolete in the future with the help of regular, in-depth security audits and pen testing.