Cybersecurity in Blockchain-based Systems
By: Azgari Lipshy
You have probably heard about blockchain by now. It’s been all the rage in the tech world for a few years now and shows no signs of slowing down. But what is it, exactly? This article highlights all you need to know about how you can use blockchain to improve cybersecurity in blockchain-based systems. Keep reading to learn more about cybersecurity in blockchain-based systems.
What Are Blockchain and its Features?
You might have heard about blockchain technology and be wondering what it is. Blockchain is a digital ledger containing a distribution of information databases that authorizes only secure, transparent, and tamper-proof transactions.
Its potential to revolutionize many industries, including cybersecurity, is a significant reason why its influence as a game-changing technology is recognized.
Although blockchain has been around for a while, people have only recently started to utilize it in cybersecurity and cryptocurrency transactions. A blockchain keeps growing as long as you add completed blocks (containing transaction data and timestamps).
Features of Blockchain
The following are the significant features of blockchain technology:
- Decentralization:
Blockchain being decentralized means it doesn’t rely on a single server or entity to control its network, making it almost impossible for one person or organization to manage the entire system.
Instead, whatever transactions taking place are verified across a network of computers while the data is stored in various networks of servers which makes it incredibly immune to attacks or interference from a single source.
- Transparency:
Every transaction on the blockchain is visible to everyone on the network, which makes it possible for users to trace the history of any transaction to where it was initially recorded on the blockchain. With this feature, there is accountability and transparency in the system.
- Security/Immutability:
Blockchain is incredibly secure, thanks to its cryptographic hashing features. Simply put, blockchains are not subject to change or alteration once recorded. Hence, it is resistant to fraudulent activities or changes made by third parties.
Can Blockchain Be Hacked?
So can Blockchain be hacked? Let’s take a look and find out the answer. As stated above, blockchain is secure because its data is encrypted, and only authorized users can access it. However, despite the high level of blockchain security, there is a potential for hacking in the blockchain. So, yes, blockchain can be hacked. There have been several cases where hackers were able to steal cryptocurrencies. So how do they do it? Hackers typically exploit loopholes in the codes or hack into the system through vulnerable points. They then use this information to steal cryptocurrencies or wreak havoc on the system.
Nonetheless, so long you store your data on a secure and verified blockchain platform, you can be confident your information is safe from hackers.
Examples of Blockchain-based Systems That Have Been Hacked
So far, you have read about the security benefits of blockchain-based systems. But it’s important also to acknowledge that these systems are not infallible. They have already been hacked in a few notable cases.
For instance, the first is the DAO hack, which occurred in 2016. In this instance, hackers were able to exploit a vulnerability in the code and steal millions of dollars worth of Ethereum.
More recently, there was the Equifax hack, which affected 143 million people. Hackers could access Equifax’s systems by exploiting a vulnerability in Apache Struts, a popular web application framework.
There were also the ‘Meltdown’ and ‘Specter’ attacks, which targeted processors made by Intel and ARM. These attacks allowed hackers to steal data from the memory of running apps, including passwords and encryption keys.
The Need for Cybersecurity in Blockchain-based Systems
As you know, blockchain technology is becoming more popular for businesses. But did you know that it also increases the vulnerability of your business to cyberattacks?
That’s because blockchain-based systems are usually transparent and open to all, so hackers can quickly gain access to your data. And once they have access, they can wreak havoc on your business.
When dealing with something as important as your financial information, you need to ensure that it’s as secure as possible. That’s why blockchain-based systems need to have strong cybersecurity in place.
Cybersecurity is essential for two significant reasons:
- It keeps your data safe from hackers.
- It keeps the blockchain-based system running smoothly.
If someone was able to hack into the system and interfere with the transactions, it could cause a lot of chaos. That’s why it is so essential to consult cybersecurity experts who will constantly look for potential threats. A cybersecurity expert must be proactive to keep your data safe and your system running smoothly.
How To Improve Cybersecurity in Blockchain-based Systems
How can you improve cybersecurity in a blockchain-based system? Here are a few recommended tips to protect you from cyber-attacks.
- First, ensure you have a very strong and unique password. Don’t use the same password for different accounts, and don’t use words or phrases that are easy to guess.
- Second, install a good antivirus program and keep it up to date. This will help protect your computer from malware and other online threats.
- Third, be careful about what you click on. Don’t open attachments or click on links in emails unless you’re sure that they’re safe.
- Use the latest security technologies. Use firewalls, anti-virus software, and other security technologies to protect your system from hackers.
- Fourth, stay informed about the latest cybersecurity threats. Ensure you know how to protect yourself from ransomware, phishing attacks, and other online threats.
By following these tips, you can help improve the cybersecurity of your blockchain-based system.
Final Thoughts
In conclusion, a blockchain-based system provides a high level of security that is much needed in the current cyber world. By implementing cryptography and smart contracts, you can be sure that your data is safe and, likewise, your transactions are transparent and tamper-proof.
Cybersecurity should be one of your top priorities when building a blockchain-based system. By implementing the proper security controls, you can protect your system from malicious actors and ensure that your data is safe and secure.
About the Author
Azgari Lipshy Azgari Lipshy is a yogi by sunrise, a SAAS account manager by day, and a live music fanatic by night. She writes about her experiences while traveling, cooking, yoga, and technology that she finds fascinating.
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