Blockchain technology creates a secure structure of data that ensures trust in transactions. It’s built on principles of decentralization, cryptography, and consensus - all guaranteeing the safety of each transaction within any blockchain or distributed ledger (DLT). According to btsr.io most blockchains or DLTs, like Ethereum, contain bundles of transactions organized into chains containing thousands upon thousands of more pieces of information.

The cryptographic chain creates a connection between the blocks, validating and agreeing upon each transaction. In this way, it’s nearly impossible for someone to tamper with or break anything in that chain.

Blockchain technology is a decentralized system that records transactions immutably. However, some privacy issues still exist, and hackers can breach the network to change transaction data. Professionals in the industry regularly participate in a Blockchain Developers Contest to sharpen their skills.

How Fraudsters Attack Blockchain

Hackers and fraudsters threaten blockchains in four primary ways: phishing, routing, 51% attack, and Sybil attacks.

Routing

Blockchain participants can’t see the threat behind Blockchain, and everything looks normal. However, hackers have used this vulnerability to extract confidential data/currency from these transactions, which is a risk for all.

Phishing

The email asks the user to input their credentials. It will then send them a fake link that takes them to where they can send over their wallet key, which would cause phishers to gain access and steal funds from the blockchain network.

Sybil Attacks

Sybil attacks are an example of hackers creating many identities to attack networks. We have used these types of identity theft in the past and will continue to be a significant threat to computer security.

51% Attacks

The ability to control the ledger and manipulate it is ominous. This power could lead a miner or group of miners down dark pathways, especially if they lost their moral compass along the way.

Blockchain Security for Enterprises

There are several security layers to consider when building an enterprise blockchain solution. First, you need a comprehensive strategy for traditional controls and technology-unique ones as well. Second, it’s essential to think about how governance and permissions will work in the network, given your business needs.

Primary Security Control Used In Blockchain Security Includes:

Key management

Data privacy

Smart contract security

Identity and access management

secure communication

Transaction endorsement

To create a blockchain solution that is both compliant and secure, seek experts. A production-grade platform can be used in your chosen technology environment, whether on-premises or cloud vendor.

Security Tips

When designing blockchain solutions, consider the following;

Will they capture what type of data in the blocks?

What is the recovery plan for the participants?

What governance model will be used for the participant?

What kind of security posture should clients have?

Secure, resilient infrastructure is critical when establishing a private blockchain. A poor choice of underlying technology can lead to data security risks due to vulnerabilities.