How to Protect Blockchain: Challenges and Solutions

Blockchain security is based on cryptography and mathematical decision-making models. Its main advantages include the principle of immutability and consensus. In most cryptocurrency systems, blockchain prevents the duplication or destruction of digital money. However, cryptocurrency is not the only application of blockchain. The technology is used to store a wide variety of data.

Blockchain security is a complex topic. It is important to understand the basic concepts and mechanisms that ensure that these systems are secure. To increase security and keep it at a high level, various actions discussed below will help.

Since the early forerunners of the 90’s and since its emergence in 2008, blockchain has changed significantly. In 2021, interest in blockchain has grown significantly. Many government institutions in different countries have started using the technology. The idea of a decentralized financial system is gaining more and more support. Distributed registries and cryptocurrency economy are at the heart of the development of the new generation of the Internet.

The development of blockchain technology and the growing interest in it have led to new security challenges. In 2022, the amount of losses due to blockchain attacks exceeded $9 billion, the most attacks recorded in a year since the blockchain has existed.

Despite its high level of protection against traditional hacker attacks, blockchain has a number of vulnerabilities that attackers exploit. In addition to common phishing, blockchain is subject to specific threats unique to this technology: 51% attacks, hacking attempts, private key theft, Race and Finney attacks.

Blockchain uses the principle of decentralization, so there is no single person in charge of security. In a world of distributed ledger and decentralized applications, it is the responsibility of each user. Organizations and businesses using blockchain must think about a security strategy to withstand attacks.

Attackers can target different blockchain systems used to interact with applications, cryptoassets or identity management. Phishing, an old but effective method, is often used to gain unauthorized access to corporate networks and steal private keys.

It’s easy enough to counteract, but it’s important for businesses to train employees and implement a culture of digital security. Using secure email, secure authentication, and regular security updates are basic steps necessary for blockchain security.

These practices are applicable to any blockchain: