Blockchain Security – Common Threats
March 3, 2023
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One of the most significant elements to consider in blockchain space activities is blockchain security https://www.apostro.xyz/product/blockchain-security .
Players in the sector are researching new cybersecurity solutions as technology advances, as well as documenting and guarding against known threats.
In this post, we will look at some of the most frequent blockchain-related threats, such as phishing and consensus attacks.
Consensus attacks
A 51% consensus attack is essentially a network denial-of-service (DOS) attack. The nodes are unable to function, preventing the network from functioning and additionally resulting in the price volatility of the underlying network token. The consequent disruption in functionality might be harmful to both the network and its users.
Consensus attacks, as one might expect, are extremely expensive to carry out since they need a large amount of mining power. To carry it out, one must either be ready to spend a considerable amount of money or join up with other miners trying to attack the network.
If an individual or a group of collaborators gains more than 51% of the network’s mining power, they may be able to influence block formation and even aim to introduce double-spending or stop transactions from passing through certain wallets, among other things.
Phishing attacks
Phishing attacks are becoming more widespread in the blockchain area. Hackers target both new and old users in a number of methods in order to steal crypto assets. Bad actors use social engineering to learn more about you and then use that information to deceive you.
Malicious actors frequently use fake websites to get personal information and private keys from unwary users. With this information, fraudsters get access to your wallet or account and may move all of your assets anytime they want.
In order to send you to the fake website, the attacker typically acts as a representative of a service you use, such as a support agent offering to assist you with an issue that has occurred or asking to update your personal details.
It makes no difference whether you use just centralized services or are totally decentralized in your crypto life – there are several tactics that hostile actors use to incite your emotions and abuse them against your better judgment.
A typical phishing attempt begins with an email. It will contain a link to a fake website and instructions on what hostile actors anticipate you to do – the fake website will look to be an exact clone of the actual one, with the only difference being the URL.
DDoS Attacks
A successful DDoS attack may be executed not just against a server or website, one can also use it to impair blockchain network operations. Malicious actors utilize transaction flooding as a DDoS. As a result of these assaults, hundreds of spam transactions are sent to the network.
Blockchains are based on blocks. Each block can only have a certain amount of transactions. When hundreds of spam transactions are delivered to the network, legitimate transactions from the current block are screened and saved in memory.
As a result of transaction flooding, all genuine transactions are stored in memory. They cannot be confirmed if they are not included in blocks, and the transaction fails. Because the blockchain cannot handle transactions at the current rate, users may have to wait for many hours before their blocks are validated – and the disruption in operations may have unanticipated consequences.
Enhancing Security
To enhance blockchain security, smart contract audits, research, thousands of tests, bug bounties, and other ways are being deployed. Above all, at this level of blockchain development, users should prioritize their personal security by safeguarding private keys and keeping an eye out for phishing, ransomware, or fraud efforts.
Another factor to consider is the security processes of the crypto projects that consumers use, such as if they have been attacked in the past, whether they have completed audits, and whether they use risk management systems to protect against economic and technological exploits.
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