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Critical Blockchain Security Risks and How Blockchain Technology Providers Eliminate Them

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A critical concern that blockchain technology providers always consider is security. Blockchain is shared, replicated, and permissioned ledger with consensus. The shared ledger provides users with information on a need-to-know basis. Before proceeding, the platform design should be reviewed against the blockchain security model to ensure all measures are in place and secured.

4 Kinds of Blockchain Based on Security

Addressing and analysing critical issues are imperative to having a secure platform. Aside from common problems, experts also consider those that often appear in blockchain news to keep their platforms running smoothly. Issues typically vary depending on the blockchain being used:

  1. Public Blockchain – Anyone could join this blockchain to validate transactions. This is risky because anybody could take part in the blockchain without any level of restriction and management.
  2. Private Blockchain – This blockchain is limited to business networks. The membership is under the control of one entity.
  3. Permissioned Blockchain – This blockchain encrypts its ledger so that only relevant participants can view it. Designated personnel can also decrypt the ledger.
  4. Permissionless Blockchain – This kind of blockchain has no limits on processors.

3 Common Issues that Affect Blockchain Platforms

Ledger-based technology is susceptible to several vulnerabilities. Here are a few of them:

  1. Endpoint Vulnerability

The endpoint refers to the spots where humans and the blockchain meet. It is what allows businesses to access and provide blockchain-based solutions. The process begins with information input and ends with information output.

Endpoints are vulnerable due to the data required to enter them. There is a risk that the credentials used to access the blockchain platform may be leaked if security is weak.

  1. Absence of Standards and Regulation Measures

Blockchain technology was established to combat the idea of currency regulation. While this levelled the playing field for crypto investors, it also made the platform vulnerable to issues due to the lack of standardisation.

The emergence of blockchain systems that operate by a new set of rules contributes to these problems. For example, if two blockchains are integrated without consideration for their differing operations, their users may encounter serious issues down the line.

  1. Public and Private Key Concern

All blockchains have public and private keys. They are composed of cryptic character strings of a specific length. Users can only access blockchains with the right combination of public and private keys. Since this is near impossible to achieve without prior knowledge, this system is simultaneously the strongest and weakest blockchain security measure.

While hackers will not be able to access data, they can exploit glitches and loopholes to obtain the correct key. The most common way they get the key is by taking advantage of the weakest link in the system, which is either a traditional PC or a mobile gadget.

3 Effective Ways to Secure Blockchain Platforms

Strong security measures must be implemented by blockchain technology providers to protect a blockchain platform, such as:

  1. Setting up strong identities and thorough authentication

All devices that access the blockchain network must be protected from breaches and other data vulnerabilities. Anti-viruses and anti-malware scans must be run frequently to determine and prevent malicious attacks. These are to ensure that the information they possess for authentication remains safe from other parties.

Authentication policies should also define the access level and scope of use for each user. New members should only be introduced to the platform after they undergo the appropriate processes.

  1. Utilising privacy-preserving technology for sensitive data

Protect each member’s privacy data and maximise permissioned ledger technology that has privacy as a design standard. Privacy-preserving security protocol should also be implemented to hide important transaction information, including the individual responsible and the details of the exchange.

  1. Implementing the Hardware Security Module (HSM)

Cryptography keys are the foundation of the blockchain, which is why their usage and storage is critical in keeping blockchain platforms secure.

Using an HSM to store the identity keys ensures that each organisation on the blockchain has its own partition. It also guarantees that there is a specific admin role for each partition. Examples of these roles include “crypto officer,” “crypto user,” and “senior administrator,” among others.

Optimise Blockchain Security for Streamlined Operations

As blockchain technology evolves, its vulnerabilities to hackers and cyber-attacks likewise change. Strong authentication and cryptography protocols must be implemented from the start to keep platforms secure.

For guidance on blockchain business processes, count on Key Coin Assets. We provide asset management and digital marketing for blockchain companies. Not only will your data be secure with us, but you can also use it to increase your profit.

Call us at +44(0)843-886-9547 to learn more. Contact us NOW to invest in yourself!