Cybersecurity: A Major Concern For Blockchain Technology

Security is the key
  • Security breaches cost upto tens of billions of dollars in 2020
  • The hackers robbed nearly US$3.78 billion in 122 attacks in 2020
  • Blockchain security features compromised during cyber attacks 

Blockchain is considered to be the most secure gateway for data storage, transactions, and data sharing. This platform witnessed 122 attacks in 2020, where a massive amount of investor’s wealth was lost in security breaches. According to the MIT Tech Review highlights that the whole point of making blockchain a place where people can share data more securely seems to be theoretical than practical. 

2020 saw a massive surge in investment activity, and the crypto market was at its peak, especially bitcoin. But the year also witnessed blockchain-linked attacks, which were very high, and the economy and investors too had a loss in millions and billions of dollars, which shackled the market structure. 

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No doubt some technologies are attack proof, but the attackers are too smart to tackle those technologies, it seems. It is well known that blockchain is the most secured transaction system in the world. Cryptography is used to secure data ledgers. Blockchain is famous for its full proof security parameters, and it is one of the most key selling points for businesses across the world.

The other security features in blockchain are traceability, transparency, and immutability. Blockchain uses cryptographic blocks to store data of the transactions that have occurred previously. Blockchain is just not limited to using it for cryptocurrencies like Bitcoin, Ethereum, or a host of other coins, but it is a technology used to store data from medical fields, smart contracts, humanitarian aid, and electoral data et al. 

Security is the key for Blockchain

But how is blockchain so secured? There are thousands of transactions that happen daily on the blockchain, and there is a private key assigned to each transaction along with a public key for further verification. If the data of the transaction changes, then the signature becomes invalid. 

Another critical factor for secure transactions is decentralization. Many blockchain networks are decentralized and distributed. The blockchain is so secured that it is hard to corrupt as a hack. This advantage is reduced. 

Cyberattacks 

Cybersecurity was a focal point of concern in 2020 as several breaches had worried the investors. On the other hand, it was regarded as the golden year for cryptocurrency as bitcoin witnessed its bullish trend only after 2017 and rose to more than 300% in 2020. There were other coins also which rose to new heights in 2021. 

According to the reports by Atlas VPN, the hackers took nearly US$3.78 billion in 122 attacks in 2020. Blockchain linked attacks were a third in the list of attacks aimed at blockchain projects. 

As per the Alowmist Hacked data, Decentralized Apps or DApps, built on the ethereum blockchain were the most vulnerable and were most frequently breached blockchain targets. In all, there were a total of 47 successful attacks that cost US$436 million to victims or close to US$10million per hack. 

Cryptocurrency exchanges also recorded a high volume of attacks by hackers. In 2020 28 crypto exchanges were attacked, and the losses recorded were US$300million. Next was the blockchain wallets where the investor held their cryptocurrencies. Hackers attacked 27 cryptocurrency wallets, costing owners US$3billion. 

In the year 2020, blockchain was attacked by 12 times. MIT Tech Review believes that the whole point of making blockchain a place where people can share data more securely seems to be more theoretical than practical. The security of top designed blockchain technology was also breached in 2020, where more sophisticated and educated hackers are waiting to breach your savings. They are skilled cheaters in the real world. 

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Ritika Sharmahttp://www.thecoinrepublic.com
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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