fbpx
253.777.0763    Get SUPPORT

Graemouse Technologies Blog

Is Blockchain a Shield for Cybercrime?

Is Blockchain a Shield for Cybercrime?

Blockchain technology is all the rage these days. Business owners are going to start hearing this buzzword as a bullet point in software solutions. Developers from all over the world are trying to harness the power of encrypted, distributed data, mainly due to the reputation that blockchain has regarding the “unhackable” permanence of the data stored upon it. However, it as powerful as blockchain is purported to be, it isn’t totally infallible.

How Blockchain Has Been Shown to Be Vulnerable

Let’s face it… blockchain technology is a human invention, which means that there are going to be some flaws.

Admittedly, the concept behind the blockchain makes this hard to believe: every transaction made through the blockchain, financial or data-based, is given a permanent, designated “block” in the chain. Before the transaction is completed, the rest of the network needs to approve this new block’s validity. The block is then added to the chain, where it cannot be altered and provides an unchangeable record of the transaction - to undo it, a new block would be created. It is only then that the transaction is completed.

While this method may seem foolproof, even “unhackable”, this just isn’t the case. In March of 2014, cybercriminals managed to steal $450,000,000 worth of Bitcoin through a transaction mutability vulnerability, and in June of 2016, cybercriminals managed to steal approximately $60,000,000 by leveraging a recursive calling vulnerability.

Additional Blockchain Vulnerabilities

Again, as a human creation, there are going to be some flaws in blockchain platforms. One investigation revealed that some blockchain and cryptocurrency platforms had over 40 vulnerabilities.

51% Vulnerabilities

Many of blockchain’s vulnerabilities have more to do with the nature of the platform as well. One such vulnerability is known as a 51% vulnerability, and is associated with mining cryptocurrencies. Let’s assume you are a cryptocurrency miner. If you manage to accumulate hashing power that exceeds more than half of what the blockchain contains, you could leverage a 51% attack to manipulate the blockchain to your own advantage.

Naturally, more popular blockchains, like Bitcoin, are far too expensive to be practical targets, but smaller coins are much more affordable to attack and can be lucrative for hackers. In 2018, 51% attacks were leveraged against less popular cryptocurrencies, netting the attackers approximately $20 million.

Security of Private Keys

Using a blockchain requires a user to have a private key. Naturally, if this key were to be stolen, those cybercriminals who stole it would be able to access and tamper with that user’s blockchain. What’s worse, because the blockchain is decentralized, these kinds of actions are difficult to track and even harder to undo.

Breach Examples

As you might imagine, most breaches involving a blockchain are in some way tied to an end user. In 2017, a fraudulent cryptocurrency wallet service was left up for months as the cybercriminal responsible allowed people to funnel their cryptocurrencies into it before stealing $4,000,000 - out of a reported total of $2 billion being stolen since 2017 began. In January 2018, it was disclosed that hackers stole private keys with malware, taking over $500,000,000 in NEM coins (a now-effectively-worthless cryptocurrency established by a nonprofit).

If hackers are able to steal from a purportedly “unhackable” technology, what’s to stop them from stealing from your business?

Cybersecurity solutions from Graemouse Technologies, that’s what. We can set up the security solutions your business needs to protect its data, and monitor your systems to detect breaches preemptively, preventing a security issue from happening. To learn more about what we can do, reach out to us at 253.777.0763.

What Does Your Business' IT Infrastructure Look Li...
Tip of the Week: Company Culture Can Be a Huge Bus...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, June 17 2019

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Business Computing Knowledge Bring Your Own Device Net Neutrality Data Protection Data Storage Data Management Computers Wi-Fi Cybersecurity Word Data Recovery Office 365 Best Practices Business Intelligence HVAC Meetings Data Security App Outsourced IT Windows OneNote Comparison Employer-Employee Relationship VoIP User Tips Internet of Things Android Innovation Update Education Encryption Law Enforcement Fraud Workplace Tips Privacy Wireless Internet Data Backup Business FENG Cybercrime Display webinar Title II Social Media Artificial Intelligence Blockchain BDR Google Docs Bing Phishing Health Avoiding Downtime Miscellaneous CES Quick Tips Telephone Systems HaaS Microsoft IT Services IT Support Computer Cables Tools Gadgets Mobile Device Management Scam Cloud Identity Theft Telephony Tech Term Windows 10 Data Upgrade Voice over Internet Protocol Training Humor Spam Blocking Netflix Users Productivity Software as a Service Small Business Devices Sports Mobile Device Wireless Apps Google Drive Hardware Hosted Solutions Root Cause Analysis Facebook Managed IT Technology Smartphone BYOD Password Private Cloud Two-factor Authentication Augmented Reality Backup Network Software Collaboration Content Management Current Events Applications Cryptocurrency Google Servers Windows 10s IT Plan Business Mangement Paperless Office Save Money Access Control Network Security Internet Data Breach History Server Connectivity Bandwidth Settings Tip of the Week Internet exploMicrosoft Social Engineering Browser Malware Windows 10 Smartphones Efficiency Website Machine Learning Default App Automation Managed Service How To Router Human Resources Frequently Asked Questions Managed IT Services Security Remote Monitoring Emergency Password Manager Unified Threat Management Communication Safe Mode VPN Chrome Passwords Cloud Computing Cast IT Management Business Continuity Staff Money Firewall iPhone Hackers Holiday Virtualization Unsupported Software Keyboard Mobile Devices Public Cloud Botnet Inventory Saving Money Networking Help Desk Business Management Business Technology Google Search Operating System Virtual Assistant End of Support Infrastructure Telephone System Apple Email Disaster Recovery Microsoft Office Windows 7 PDF Spam Ransomware Vulnerability Printer Alert Communications Redundancy Government Information Charger Hybrid Cloud Online Managed IT Services

Newsletter Sign Up