A technology as huge as the internet is all set to take over almost every sphere of life in the near future. However, cryptocurrency was the reason to build a buzz around blockchain. The technology goes far beyond crypto or bitcoin.
But before businesses or, for that matter, the government decides to shift to the blockchain; it is imperative to remain in the known of its security aspects. Before delving into the domain of blockchain security. Firstly, let’s discuss a few general aspects related to blockchain.
Through this article, we are going to discuss the following aspects of blockchain technology.
What is Blockchain?
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Blockchain is a distributed ledger that stores digital data to maintain a secure and decentralized database.
To enumerate, every block in a blockchain acts as an information container, linked with each other via cryptographic keys. Once a block is filled with data, it is chained to the previous block through a cryptographic key/signature, making the blocks chained together in chronological order.
Up against the traditional approaches, blockchain eliminates the need for a middle-man or centralized control network. Rather, all the transactions are verified by the specific blockchain protocol participants, thereby bringing in reliance on the data.
How Does Blockchain Work?
Although blockchain allows the storage and distribution of data on a decentralized ledger, once deployed, the data cannot be altered. For that matter, changing recorded data is not permissible with blockchain. Rather, it is stored onto a new block which indicates that ‘X’ changes to ‘Y’ at a specific instant.
Thus, blockchain forms a system of immutable data or records of a ledger that can neither be altered nor deleted.
A cryptographic key links every new blockchain with the previous block. Every time a block is added to the ledger, it instantaneously gets broadcasted to all the nodes of that blockchain network.
Why is It Necessary to keep Blockchain Secure?
Although blockchains are immutable and decentralized, a few reasons make it imperative for users to ensure secure transactions.
- Blockchains are not immune to cyberattacks.
The tampering of blockchain with cyberattacks has been in the news for quite some time now. In 2021 alone, almost $14bn worth of crypto crimes were reported, as per the data from Chainalysis.
This suggests that it is necessary to address the risks associated with blockchain solutions to ensure security.
- Several vulnerabilities associated with blockchain-based protocols
One of the biggest advantages of blockchain is decentralization, but this could also be a reason for some critical issues associated with it. This includes a lack of control over decision-making, policy compliance, and access control.
Also, risks concerned with fraudulent transactions, critical data loss, security breaches, leakage of funds, and audit and compliance issues are frequent phenomena with blockchain platforms.
What are the ways to ensure Blockchain Security?
Enforce Security Controls Unique to the Blockchain
At present, there are almost 1,000 different blockchain platforms that have their own unique features. This implies every platform has its own set of rules of governance that determine its security aspects.
Ensuring practices like enforcing identity and access control, defining appropriate endorsement policies, taking care of the hardware security models, and adopting data classification approaches, among others, are a few ways to keep your blockchain secure.
Secure Core Blockchain Technologies
Cryptographic keys that connect one block to another and ensure the originality of a smart contract are the fundamental security foundation of the blockchain network. This makes it imperative to generate, secure, and secure crypto keys safely.
Enforce Safety Access Control to Smart Contracts
Smart contracts have changed the way we look at blockchain. Aligned to a specific business objective, they are a fundamental part of blockchain solutions.
Here, a certified Blockchain security company providing auditing solutions for smart contracts is of utmost importance.
A thorough review of one’s smart contract can prevent the chances of vulnerabilities like leakage of funds, gas optimization, and others. Thus, preventing your smart contract from a financial catastrophe.
Secure Blockchain Communications
Secure storage of crypto keys, providing a safer methodology for the exchange of data and governing authentication to ensure secure integration of all Blockchain transactions.
Sum Up
Firstly, Bitcoin, Ethereum, and many more, starting from cryptos, blockchain applications have spread their wings in almost every corner of the world.
Especially with the wider of the smart contracts to deploy one’s business on a blockchain protocol, it has necessitated ensuring the security aspects associated with it. Even if the decentralized technology promises security, it is certainly not hack-proof and requires the utmost attention to prevent blockchain security breaches.
To prevent one’s blockchain from cyber attacks, organizations must secure their Blockchain at an initial stage by implementing strong authentication and secure storage of cryptographic keys.
So, Stay tuned with your blockchain security company ImmuneBytes, to stay updated with blockchain technology.
About ImmuneBytes
We at ImmuneBytes offer enterprises and startups comprehensive smart contract auditing solutions for their applications to have a secure commencement. Our journey begins with an aim to foster security in the upcoming blockchain world, improving the performance of large-scale systems.
However, Blockchain fosters a secure transactional environment, and applications built on this technology come with their own set of vulnerabilities.
With no scope for alterations in blockchain transactions, smart contracts need to be thoroughly evaluated. Thus, preventing any further loopholes left from turning your project into an extravagant exploit.
ImmuneBytes administers stern smart contract audits, employing both static and dynamic analysis. Alongside, we examine a contract’s code and gas optimization, leaving no escape route for bugs.