Can Blockchain technology be hacked? – BTC wires

Of& nbspPrashant Jha

Internet The safety and management of private data by whales in the technological world has raised a big question mark on the legitimacy of the claims made by these technology giants. The recent congressional hearing of Google CEO Sundar Pichai did not help the cause. So, what is the safest platform that can be trusted to protect users from personal data and not distribute rights to the people who offered the highest price?

Blockchain has always been promoted as a reliable and decentralized system that could be the answer to all the security flaws within current Internet systems. Whenever we meet the new development in which one or the other by-product of Internet revolutions is captured by manipulating user data, we tend to look towards the blockchain.

So, how safe and inaccessible is the blockchain technology? We will try to analyze every aspect of the relatively new technology in a critical way and we will reveal some myths about its tampering and inaccessible claims.

You can also read: will cryptocurrencies be legalized in India?

The blockchain is not immune to cyber attacks

Blockchain experts would tell you that the technology is infallible and there is no way to tamper with it. But, always remember that technology is not the problem, it's the people around it. Any technology, old or new has different weaknesses and the attack and Blockchain vectors are no different. We will go deep into the short history of cryptocurrency and see what the most important attack vectors are or if we have gone close to eradicating the myth about "inaccessible" blockchain technology.

Sybil Attack

Blockchain technology is considered superior because of its ledger or distributed nodes, where each node check depends on the previous one. However, the Sybil attack blew the bubble for those who think distributed register = anti-tampering technology.

In the case of a Sybil attack, a large amount of the total nodes is owned by a single part, which can use the accumulated nodes to manipulate the network. Holders can flood the node with false transactions or stop real transactions through block manipulation.

The good news is that Sybil's attacks exist only in theory so far and its chances of becoming a problem in the real world are far-fetched. However, the self-recognition of a block on the BCH SV network after the notorious Hard Fork of November 15 approached almost to the manipulation of the nodes.

Typically, cryptographic operators use Proof of Work (PoW) to avoid Sybil attacks. PoW requires extraction power to gain tokens and even verify nodes. The energy consumption for the extraction is quite high, so it eliminates the possibility of manipulation of multiple nodes.

Routing attack

The blockchain network could be decentralized through distributed nodes, but the execution of a node requires Internet services. The attack on routing draws our attention to a factor that nobody seems to be worried about, the role of ISPs in managing a node. It is true that a node can be executed anywhere in the world, but what no one would tell you is 13 ISPs host 30% of the Bitcoin network, while 3 ISPs address 60% of all transaction traffic for the Bitcoin network.

If someone from within decides to take control of the network through ISP, there are excellent chances of success. A routing attack occurs by intercepting the signals sent by two autonomous bodies. This is a fairly common event in the Internet realm, and the day is not far when the same thing happens on the crypto network.

Direct Denial of Service

Direct Denial of Services (DDoS) is one of the easiest ways to block a network. The operations are quite simple where, many hackers or programs send a lot of lousy network requests, which block the system and prevent authentic messages from reaching the server. These attacks are known to paralyze any network or block it for some time.

The main cryptocurrency networks like Bitcoin are always under DDoS attack. However, the developer team had made sufficient arrangements to reduce the impact. However, in the event of a successful DDoS attack, there will be no threat to the user's fund or security.

The majority attack

The security of the blockchain depends directly on the energy efficiency of your computer and hackers can easily access the computers. Control over computer systems would mean domination over hash power. This would allow attackers to extract blocks much faster than the rest of the network, which can open doors for double spending, a very complicated but significant form of attack.

However, the chances of obtaining such a majority attack would be useless. Because the upper hand on the hash power can be pulled for low threshold coins. Trying to attack a network like Bitcoin would be expensive because the attacker could use the higher hash power to extract bitcoins instead of manipulating the network

You can also read: Cryptocurrency Bounties & Airdrops: everything you need to know

The infamous DAO attack

All the attacks mentioned above are either hypothetical or too complex to pull off. However, there is a case where a hacker exploited a small mistake on the Ethereum network to deceive millions of people.

The decentralized autonomous organization (DAO) was built on the Ethereum network through smart contracts. The new project allowed users to invest in a new project and vote for their decision via smart contracts. The process was simple; You must purchase DAO tokens and then make the investment according to their will. If you want to withdraw from the project, send the DAO token and get ethereum in return. The process was called "split return".

The recovery was a two-step process in which the correct amount of token ethereum was returned to the token holder and then resumed the DAO tokens and recorded on the blockchain, to maintain the DAO budget. The anonymous hacker saw the vulnerability in the process and realized that he could trick the system into repeating the first step without finalizing the second part. This attack led to a total loss of $ 50 million.

You can also read: BigToken aims to put a stop to the mistreatment of data by Tech Giants

Final thoughts

Most of the attacks mentioned above are more vulnerable than a power threat. However, the cost or fees are very high compared to the result. The system is robust and secure; it is the people around him that represent the main threat.

People often confuse attacks on exchanges as an attack on the network. Currently, the blockchain network works perfectly, but the exchanges, portfolios and third-party service providers are the real threat. Technology is solid, people need to be more educated about vulnerabilities and be vigilant. A phishing scam that takes all your bitcoins is not a threat to the bitcoin network, but you.

Here are some other articles for you to read the next:

Prashant Jha

As a content writer, Prashant believes in presenting complex topics in simple terms such as laity. He is passionate about technology and an avid reader.