Your IT Support Experts

We partner with many types of businesses in the area, and strive to eliminate IT issues before they cause expensive downtime, so you can continue to drive your business forward. Our dedicated staff loves seeing our clients succeed. Your success is our success, and as you grow, we grow.

Home

About Us

IT Services

Understanding IT

News

Blog

Contact Us

Support

Free Consultation

Interested in seeing what we can do for your business? Contact us to see how we can help you! Sign Up Today

Tailored Networks Blog

Is Blockchain a Shield for Cybercrime?

Is Blockchain a Shield for Cybercrime?

Blockchain technology is all the rage these days. Business owners are going to start hearing this buzzword as a bullet point in software solutions. Developers from all over the world are trying to harness the power of encrypted, distributed data, mainly due to the reputation that blockchain has regarding the “unhackable” permanence of the data stored upon it. However, it as powerful as blockchain is purported to be, it isn’t totally infallible.

How Blockchain Has Been Shown to Be Vulnerable

Let’s face it… blockchain technology is a human invention, which means that there are going to be some flaws.

Admittedly, the concept behind the blockchain makes this hard to believe: every transaction made through the blockchain, financial or data-based, is given a permanent, designated “block” in the chain. Before the transaction is completed, the rest of the network needs to approve this new block’s validity. The block is then added to the chain, where it cannot be altered and provides an unchangeable record of the transaction - to undo it, a new block would be created. It is only then that the transaction is completed.

While this method may seem foolproof, even “unhackable”, this just isn’t the case. In March of 2014, cybercriminals managed to steal $450,000,000 worth of Bitcoin through a transaction mutability vulnerability, and in June of 2016, cybercriminals managed to steal approximately $60,000,000 by leveraging a recursive calling vulnerability.

Additional Blockchain Vulnerabilities

Again, as a human creation, there are going to be some flaws in blockchain platforms. One investigation revealed that some blockchain and cryptocurrency platforms had over 40 vulnerabilities.

51% Vulnerabilities

Many of blockchain’s vulnerabilities have more to do with the nature of the platform as well. One such vulnerability is known as a 51% vulnerability, and is associated with mining cryptocurrencies. Let’s assume you are a cryptocurrency miner. If you manage to accumulate hashing power that exceeds more than half of what the blockchain contains, you could leverage a 51% attack to manipulate the blockchain to your own advantage.

Naturally, more popular blockchains, like Bitcoin, are far too expensive to be practical targets, but smaller coins are much more affordable to attack and can be lucrative for hackers. In 2018, 51% attacks were leveraged against less popular cryptocurrencies, netting the attackers approximately $20 million.

Security of Private Keys

Using a blockchain requires a user to have a private key. Naturally, if this key were to be stolen, those cybercriminals who stole it would be able to access and tamper with that user’s blockchain. What’s worse, because the blockchain is decentralized, these kinds of actions are difficult to track and even harder to undo.

Breach Examples

As you might imagine, most breaches involving a blockchain are in some way tied to an end user. In 2017, a fraudulent cryptocurrency wallet service was left up for months as the cybercriminal responsible allowed people to funnel their cryptocurrencies into it before stealing $4,000,000 - out of a reported total of $2 billion being stolen since 2017 began. In January 2018, it was disclosed that hackers stole private keys with malware, taking over $500,000,000 in NEM coins (a now-effectively-worthless cryptocurrency established by a nonprofit).

If hackers are able to steal from a purportedly “unhackable” technology, what’s to stop them from stealing from your business?

Cybersecurity solutions from Tailored Networks, that’s what. We can set up the security solutions your business needs to protect its data, and monitor your systems to detect breaches preemptively, preventing a security issue from happening. To learn more about what we can do, reach out to us at (731) 422-3090.

What Does Your Business' IT Infrastructure Look Li...
Tip of the Week: Company Culture Can Be a Huge Bus...
 

Comments

No comments made yet. Be the first to submit a comment
Guest
Already Registered? Login Here
Guest
Saturday, July 20, 2019

Captcha Image

Customer Login

About Tailored Networks

Tailored Networks strives to provide the best comprehensive IT, Computer, and Networking services to small businesses. We can handle all of your organization's technology challenges, starting with planning, implementing, and supporting the IT solutions that are critical to your growth and success.

Read More

Contact Us

Learn more about what Tailored Networks can do for your business.

Tailored Networks
1903 N. Highland Ave. Ste 14
Jackson, Tennessee 38305