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Do not let the security loopholes of the Blockchain technology go unnoticed

Suppose, for example, that the "authorized" private blockchains are safe? You're wrong.

11, 2019

6 minutes of reading

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In early 2018, the International Data Corporation released a $ 2.1 billion global spending report for blockchain solutions for the foreseeable future. In July, the research company continued with another guide to spending, which estimated that blockchain spending would have exceeded $ 11.7 billion by 2022.

Related: blockchain technology can be fundamental to the security of the IoT infrastructure

This prediction is beginning to make itself felt: today blockchain technology continues to attract global corporate institutions that seek to radically change the way they handle transactions and manage data.

This appeal makes sense, considering the benefits of Blockchain marked by time, distributed and irreversible. Overall, the technology boasts transparency, reliable traceability, reduced costs and the ability to eliminate intermediaries. It is therefore not surprising that financial giants like Bank of America are trying to block the creation of more efficient financial transactions for consumers and businesses. Other examples? Global giants Walmart and United Bank of Switzerland are collaborating with IBM to develop blockchain-based financial platforms.

However, there is a warning about these positive developments: with cryptocurrency, the most popular financial application of the blockchain, which continues to witness sharp ups and downs, confidence in technology is no longer that of a year ago. On the one hand, we have blockchain enthusiasts who swear on technology; from the other ones that raise serious concerns about the various cryptocurrencies, such as regulatory uncertainty and general trust.

Related: thanks to Blockchain, decentralization and data security: the future

According to a study conducted by PWC last summer, 45% of respondents cited "trust" as the biggest barrier to technology adoption.

This brings us to the present. And today, the large number of hacks and thefts, along with lax regulatory policies, not only paralyzed the crypto economy, but also led people to question the immutability and security of the blockchain . Thus, the obvious conclusion is that while the blockchain is self-contained, it can be very compromised at the access point.

What constitutes these security vulnerabilities? Here's what you need to know about authorized blockchains, cryptographic portfolios and cryptographic exchanges, as well as how these security gaps can be strengthened for greater security.

What makes cryptocurrencies and cryptographic exchanges vulnerable.

$ 9 million is stolen every day from encrypted cash machines. From DAO to GDAX and Mt. By exchanging with Zaif, even the best trades can not protect themselves from being hacked. In June of last year, $ 1.1 billion had already been stolen in cryptocurrencies in 2018.

Why do cryptographic portfolios and cryptographic exchanges continue to be victims of crypto hack? The answer is that hackers are able to manipulate the vulnerabilities that are inside our devices, and within us, like the humans who use them. Hackers are using more and more malware to attack the devices we use to interact with cryptographic portfolios and exchanges.

As most people continue to rely on 30-year anti-virus technology to combat threats to their devices, security is not enough. Every four seconds, hackers release a new malware string, and when an antidote is created, another malware has been generated to take its place.

What we need instead It is a proactive solution that protects devices from outside with features such as key encryption, anti-clickjacking, anti-screen capture and advanced password protection.

Only in this way will we be able to stay one step ahead of hackers who are continually inventing new and more sophisticated ways of attacking portfolios and exchanges by accessing our devices.

What makes private (authorized) blockchains vulnerable.

Contrary to common perception, there are inherent vulnerabilities in the private blockchain. A blockchain essentially functions as a shared record of information to which multiple parts can refer, observe and make additions. Unlike public blockchains, where anyone can participate in the network, conduct transactions and maintain the shared ledger, manage permissions blockchains are only accessible to those who have express authorization to the network.

This means that more parties can refer to, track and modify transactions within a private blockchain, provided they are authorized to access it. Each transaction within this shared record is digitally signed, to ensure its authenticity and integrity.

Companies seeking to distribute licensed blockchains work with the assumption that only authorized users can access these transactions and that only a legitimate transaction can be added permanently to the record, making transactions untouchable.

Unfortunately, this hypothesis is wrong. What these companies do not consider is that malware could be secretly linked to a legitimate transaction carried out by an authorized user. This move could then become permanent, just like all other data stored on the now infected blockchain.

We need to prevent the authorized blockchains from being compromised use a combination of new and existing technologies. For example, proven and proven transaction verification insurance, such as out-of-band authentication, could ensure that only verified transactions are permanently added to the authorized blockchain.

In addition, content agents that scan everything that goes into blockchain could ensure that malware does not enter the blockchain. In addition, each blockchain could benefit from specific rules and policies in force that establish which blockchain users with express permission to access the network may or may not be doing.

These objectives could be achieved through a policy engine capable of codifying company rules and policies in the blockchain.

Take advantage of the promise and potential of the blockchain

While blockchain has inherent security issues, players in the industry with the vision and ability to harness the power of blockchain technology should in no way feel discouraged.

In fact, the numerous cases of use of blockchain can be and are already being configured as a harsh reality. However, innovators and entrepreneurs seeking to adopt the technology should gain in-depth knowledge of the security issues involved and embark on their blockchain journey by first ensuring that proactive measures are taken to combat the risks. Here are some tips to help prepare those who are trying to implement the technology, particularly in payments:

• Blockchain and cryptocurrency are here to stay. While they are still in the early stages, these technologies are rapidly becoming part of the fundamental fabric that companies will use to gain competitive advantage. So, as an entrepreneur, you should become a zealous student and learn all you can about this anticipated change.

It develops a strong computer security posture and continually practices it, especially when it comes to cryptocurrencies. Crypto-hackers are inexorable in developing new schemes to steal cryptography. So, remember that a good carpenter "measures twice and cuts once". Apply the same preventive practice to your daily computing habits.

Related: Sick of password? Here's how Blockchain can help and improve IT security, for startup.

Embrace the future of blockchain and crypt. Let yourself be involved, talk to others about these changes; go to local meetings; and become a proactive part of this new evolution.

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