Transaction Security

Blockchain solutions have considerably stronger security protocols than traditional solutions. However, the decentralized architecture, where every participant has servers and application code, can make enforcing security controls a challenge. One of the benefits of decentralized data is said to be the removal of the single point of failure from a malicious attack. However, this benefit can turn into a disadvantage as there are now more vulnerable points of attack that need to be secured. And a failure at any one point could compromise the entire network.

There are several security issues that a Blockchain network may face, although none of them are easy to exploit.

• 51% Attacks: Transactions can be tampered with by gaining majority control (51% or more of the control rights) of a blockchain. To prevent these attacks, all participants will need to proactively monitor participant activity to ensure no participant gets majority control.

• Social Engineering: This is probably one of the most common ways hackers get access to your confidential information, including passwords and other credentials. Phishing is one of the most common forms of social engineering. Malicious actors imitate someone you trust in emails, messages, or social media accounts to get you unknowingly share your information with them. To prevent social engineering attacks, it is important for you to not share any credentials or other confidential information over the internet with anyone, family, friends, or even your financial advisors.

Software Flaws: Since Blockchain software is still evolving; however, well it may be developed and tested, there are likely to be some flaws that hackers can exploit. There is no way around this except to place your trust in the most reputed software and networks you can.

Even with all these challenges, Blockchain solutions are no more unsafe than traditional solutions, which share almost all these flaws. Using the right software and monitoring tools and controlling access to your network (the traditional Know Your Customer (KYC) can be very useful) you can keep your network safe.