Blockchain Security: Know About the Best Practices

Undoubtedly, Distributed Ledger Technology (DLT) provides many business advantages for users. However, that can only happen when we utilize the best practices for blockchain security so that you can save sensitive information from hackers.  

If you’re planning to accommodate blockchain technology in your business, then you have to stick to the best and most effective practices. In today’s internet-connected world, only the best strategies prevail. Not only will it make it easier for you to maintain security in blockchain, but it will also enable you to explore this domain correctly. 

So, let us help you strengthen your platform so that it can meet the latest trends. This blog will guide you through the best practices to solve different blockchain security issues and make the financial world of digital currency a bit safer. 

The Most Effective Blockchain Practices

We at ImmuneBytes have been pioneers in blockchain smart contract audits for years now. Do you know all the ingredients that make blockchain technology successful in an enterprise atmosphere? Worry not if you don’t; we will clarify all your doubts further in the blog. 

To make this a little easier for you to understand, let us begin from scratch and talk about the six most crucial principles of blockchain implementation and development. Once you are thorough with this, it will make your digitizing assets safe from threats worldwide.

This graphic shows all the aspects of the blockchain-based world. These include:

• Privacy
• Security
• Standards
• Open
• Permissioned blockchain
• Governance

Now, let us proceed to give you a brief knowledge of what we are going to cover to make blockchain networks understandable to you. Further, we will also discuss the best practices for blockchain security.

What Are We Going To Cover About The Bitcoin Network?

The blockchain principles depend upon what you are doing with it. If you are working with private blockchains, then they would be different, and also in the case of, public blockchains, it would definitely vary. Similarly, when you are an enterprise, you will stick to enterprise-related practices to validate transactions. And, the same holds true if you are a blockchain architect.

Principles, Steps, And The Best Practices For Enterprise Blockchain

6 Principles for Blockchain Implementation and Development

1. Open: The blockchain solution needs to be transparent. It should therefore be open source so that anyone can contribute to its development in real-time. Additionally, the open-source label will encourage innovation and guarantee that good code is maintained.

2. Permisionned: Another crucial rule that an enterprise blockchain must adhere to is permissioning. The main characteristics of blockchain are preserved in permissioned networks, which are intended to operate in a closed ecosystem. It encourages confidence and confidentiality and makes sure that criminal activity may be reined in. In addition, permissioned networks guarantee that only reliable parties can engage with the network, enhancing its long-term viability and security. So, say no to permissionless blockchains.

3. Privacy: Another crucial factor is privacy. A blockchain solution cannot do justice to its other features, such as transparency or immutability, without the right to privacy. Because of this, a business blockchain system should strive to provide privacy from the start, and this is why private keys must not be shared with anyone.

4. Governance: An enterprise blockchain should be governed by an appropriate mechanism. It makes it possible for administrators to manage and keep the network. No one can take advantage of the network by abusing it because of strong governance. Administrators can take the required actions to halt malicious actors either as they are attacking the network or before they even begin.

5. Standards: A crucial component of any blockchain solution is standards. Teams may collaborate across a variety of needs, integrations, and requirements with the use of interoperable standards. There are currently only independent organizations working on their own blockchain solutions, which is not a wise long-term strategy. Smart contracts follow a certain standard and procedure.

6. Security: Every blockchain development must have the highest level of security. Although blockchains are secure, good security planning and implementation are still necessary. Additionally, it is a continuous process, and the security team should check the platform’s integrity on a regular basis.

Additional Resources: How to stop blockchain security issues

7 Steps How To Be Successful In Enterprise Blockchain?

Now that we have a basic idea about the enterprise blockchain’s core principles, it would be much easier for us to succeed in this field in the real world with these seven steps.

Selecting a Platform

Choosing a platform is the first step. Building your platform can be a good alternative, but it will cost you a lot of money. For the majority of existing enterprises, it is not practical. The current platforms play a role in this.

You must be aware of the trade-offs on the current platforms before moving further. They are not totally in line with your needs and they are not flawless. Furthermore, not all platforms offer the same features or services. Some might excel at governance, while others would excel at scaling.

Platforms of the most recent generation, like Hyperledger, provide several alternatives. Other business systems are available, including SAP blockchain, IBM blockchain, and others.

Begin Experimenting

As an enterprise, you got to evaluate the computing power of your firm and begin experimenting with the blockchain to see how well you can utilize it for your company. What are the aspects of your organization that you can transform using blockchain?

Get scalability and security right

The adoption of a permissioned approach makes sure that only those with permission can access the network. The blockchain network is safeguarded by this centralized design against a variety of dangers, such as 51% attacks.

Networks that are centralized are adept at scaling. Considering that only a small number of nodes will be a part of the network, its 2000TPS capacity is excellent.

Therefore, as a corporation, you must ensure that scalability and security are handled properly.

Creating a Legal Framework

The next action is to finish the legal work. Blockchain is decentralized, making it difficult to regulate or make the network legitimate. However, even a modest move in the direction of legalization can safeguard your network and make sure that everyone is working with the greatest intentions imaginable.

Get Smart Contracts Ready

Any network has a significant amount of smart contracts. It performs the role of a mediator, handling all interactions between the parties. If a given condition is satisfied, it will only be executed. This can be used to automate many blockchain-related processes.

To ensure that no one can break the rules, you should employ smart contracts to enforce them.

Gamification and Value Exchange

You may gain user popularity for your blockchain by setting up a marketplace. Gamification can be used in this situation. Value exchange models should also be your main emphasis because they enable you to use non-monetary, monetary, and consensus techniques.

Modeling Network Ecosystems

Aligning your blockchain business model with existing economic models is the final step. You can use this to determine how engagement will operate in your system. There are obviously many methods to accomplish this, but tinkering is what you need to do.

Security in Blockchain has become an imperative topic in the present days in order to establish and maintain a secure financial world. Want to know more about Blockchain security? We are all ears to your queries. Get in touch with us and clarify all your doubts about this revolutionary concept to apply the procedures within your enterprise. 

Additional Read: What is a blockchain security audit?

6 Best Blockchain Practices For Enterprise

Now that you are well acquainted with the steps to be successful within an enterprise blockchain, it is time to give you an idea about the 6 best blockchain practices for enterprise. 

These include: 

1. A business process’ ongoing security is a process.
2. For private data, make use of permissioned blockchain
3. Design a governance structure for blockchain
4. Be thorough with the blockchain cases early
5. Analyze scalability and the requirements for performance
6. Don?t make it a practice to store large files on the blockchain

Best Database Practices For You If You Are A Database Engineer And Blockchain Architect

After giving you a brief knowledge of the practices that are considered to be the best ones for an enterprise blockchain, let us move ahead with managing blockchain databases on cloud platforms. 

How to Manage Databases on Cloud Platforms

To do so, these are the following things that one needs to consider: 

1. Knowing everything about blockchain
2. Understanding that blockchain is not the ultimate solution when it comes to security
3. Utilize the tools that you know well
4. Use the data can be easily verified

Now, let us come to those practices in blockchain that are considered to be ideal for a blockchain architect. 

1. Having extensive knowledge of the underlying technology
2. Open governance
3. Using a wide array of developer tools
4. Being thorough with designing permissioned ledger
5. Analyzing and applying scalability

Blockchain Best Practices For Testing Blockchain And Mitigating Risks

Before going live, blockchain must be tested, just like any other application. While blockchain technology contributes to the development of trust, you must also ensure that the blockchain solutions adhere to their essential principles.

You must test your application as a tester by starting small. You must manage two different testing types, to put it briefly.

1. API testing

The interactions that your applications have with various components of the blockchain ecosystem must be considered during API testing. It is common for a blockchain to communicate with other components. For instance, it can perform external calls, emit events, or start an event when a certain condition is satisfied.

2. Functional testing

Another aspect of testing that involves inspecting the various blockchain components is functional testing. Additionally, it covers the entire platform. As a blockchain tester, you must do use-case-based testing while making sure that the expectations for blocks and chains are satisfied. Consider testing block addition as well.

3. Performance testing

Performance testing makes sure that the user is not kept waiting for an extended period of time while a transaction is being processed. Response times for smart contracts, system interfaces, and other crucial components must also be verified for performance.

This brings the list of blockchain best practices to a close. You may better manage your blockchain project with the aid of these blockchain best practices. We discussed many viewpoints, such as enterprise, database, testing, and so forth. Do you want to know more about blockchain security? Then, get in touch with us. We are all ears to your queries and would solve them within a jiffy!