Why Blockchain Security Matters: Exploring the Dangers of Cyber Threats

Blockchain technology was first introduced in 2008 as the backbone of the Bitcoin cryptocurrency network. Since then, it has been used in a wide range of industries due to its efficiency, transparency, and security. However, like all technologies, blockchain is also at risk from malicious actors, creating the need for professionals who can protect the critical assets transferred and stored on this emerging technology. 

 

What is Blockchain? 

Blockchain is a digital ledger that uses cryptography and a distributed network of nodes to enable secure, transparent, and tamper-proof transfer and storage of data. They are decentralized, which means that no single entity controls the data or the network, and transactions can occur without the need for intermediaries like banks and financial institutions.  

In a blockchain, data is stored in blocks that are connected to one another in a chain. Each block contains a unique cryptographic code of the previous block, a timestamp, and a batch of data. That information is included when a new block is added to the chain that, once added, cannot be altered or deleted without invalidating the entire chain. This creates a secure and transparent record of all information on the blockchain. 

 

What is Blockchain used for? 

While cryptocurrencies remain one of the most popular uses for blockchain, the technology’s ability to log transactions and ownership securely and transparently without the need for a centralized authority has seen its use extend to a wide range of applications across various industries. 

While cryptocurrencies remain one of the most popular uses for blockchain, the technology’s ability to log transactions and ownership securely and transparently without the need for a centralized authority has seen its use extend to a wide range of applications across various industries. 

Companies like DHL are using blockchain to create a transparent and secure record of the movement of goods and products, helping to reduce fraud and increase the efficiency of their supply chains. Schools, health care providers, and companies like IBM are using Blockchain to create a decentralized system for verifying digital identities and managing sensitive information like employee IDs, medical records, and academic qualifications. In real estate, blockchain can keep secure and transparent records of property ownership and transactions. 

And as the integrity of political elections are called into question in the U.S. and abroad, blockchain could be used to create voting systems that are more resistant to tampering and fraud than traditional methods – though some argue that “blockchain-based voting could greatly increase the risk of undetectable, nation-scale election failures.” 

 

What are the cybersecurity concerns related to Blockchain? 

Though blockchains are generally secure, they are not immune to vulnerabilities and cyberattacks, putting the data stored on them at risk for theft and deception. 

A 51% attack occurs when a single person or group controls more than 50% of the computing power on a blockchain network. This can enable them to manipulate transactions, censor transactions, or double-spend coins. 

Private keys are used to sign transactions on a blockchain, and anyone who has access to them can potentially steal the associated funds. Malware, phishing scams, and social engineering attacks can be used to trick users into disclosing their private keys. Similarly, when a community makes a change to a blockchain’s rules, the ledger splits – or “forks” – to create a separate blockchain. This split can create vulnerabilities that can be exploited by attackers. 

Smart contracts, which are self-executing programs that run on a blockchain when certain conditions are met, can also be exploited by attackers to steal funds or manipulate transactions.  

Finally, like many new technologies, blockchain faces regulatory and compliance issues. In this case, there are few regulatory frameworks and compliance standards in place to govern its use. 

 

Protecting blockchain with Capitol Technology University 

At Capitol Technology University, you can help secure blockchains and protect against their attacks through our programs in fields like Cyber and Information Security, Cyberpsychology, and Engineering Technologies, and Technology Management. Here, you’ll learn from leaders in this emerging field like Rob Campbell, who was recently elected to the fellowship of the British Blockchain Association.  

Visit our website and contact admissions@captechu.edu to learn more.