BlockChain Security Issues

What is a Blockchain?

Merriam-Webster dictionary defines blockchain as,

A digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network.

6 Types of Attacks on Blockchain

1. 51% Attacks (Sybil Attacks)

2. Double Spending Attacks

3. Routing Attacks

4. Private Key Security Attacks

5. Selfish Mining Attacks

6. Vulnerable Smart Contacts

Preventing Blockchain Security Issues

Using Proof of Stake instead of Proof of Work can help prevent the 51% attacks. As the decision will be made by users who are already in control of the majority of coins.

There are a number of algorithms to prevent Sybil attacks. One of which called Proof of Work is implemented in the majority of cryptocurrencies.

It is important to keep a check on the mining pools of your blockchain. Ensure that any pool that breaches a limit of 40%, gets some of its miners diverted to other pools.

The use of secure routing protocols (one with certificates) can help prevent routing attacks on the blockchain.

Smart contacts need to be thoroughly vetted for any bugs by experts before implementation.

Build a robust community of your blockchain users and update them via emails, newsletters, etc regarding safe private key storage practices.

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