75% of cyber attacks took advantage of flaws reported in 2017 or earlier, according to Check Point Cyber Security Report 2021. According to perimeters. Clearly, companies are failing to secure their networks and critical infrastructure. Time demands a transformation of the security infrastructure in the field of technology. As businesses search for viable alternatives to existing security infrastructure, blockchain technology emerges as one of the solutions. Blockchain security allows businesses to safeguard their assets against cyber threats. How? We will understand in this blog.
Blockchain Security Services For Enterprise Networks
The Internet is the primary means through which attackers enter into your company’s network. This is either due to existing vulnerabilities in the security architecture or ambiguity with respect to who can participate in the network.
There are different types of blockchain enterprise networks or architectures, with participation criteria being the sole differentiating factor. For instance, a blockchain network where everyone can participate is known as a public blockchain network. Since the network is open to anyone and everyone, it is vulnerable to breach attempts from miscreants. Thankfully, blockchain offers safer alternatives to the public network for enterprises. Private blockchains and Permissioned blockchains are some of the most popular alternatives to a public blockchain network.
Security Vulnerabilities That Attackers Use To Breach Blockchain Networks
The blockchain industry has fallen prey to numerous cyber attacks over the past couple of years. Here are the most common attacks hackers use to infiltrate into highly-secure blockchain networks:
Sybil Attacks: As we know, a node is the basic building block of any blockchain network. In a Sybil attack, hackers create multiple false identities through a node to hijack the authority in the network and carry out illegal deeds. The challenging part is that these fake identities appear real to other node operators. Thus, it becomes extremely difficult to identify the source of the hack. Crypto Airdrops are one of the most common victims of Sybil attacks.
51% Attacks: Hackers launch 51% Attacks to take control of the mining power of a blockchain network. The attack occurs when a group of miners takes control of more than 50% of a project’s mining hashrate- which is essentially the sum of the entire computing power of a network for mining and processing transactions. 51% Attack also allows attackers to alter or rewrite parts of a blockchain or reverse transactions. Popular crypto projects like Ethereum Classic and Bitcoins SV have fallen prey to 51% Attacks.
Brute Force Attacks: Brute Force Attacks are one of the biggest challenges to blockchain security. Traditionally, brute force is an approach to breaking security passwords. In the case of blockchain, brute force attacks are directed at stealing private keys. While it is virtually impossible to brute force something as secure as a Bitcoins private key, there are some crypto projects that have fallen prey to brute forcing.
Routing Attacks: Routing Attacks primarily involve intercepting sensitive data to serve illegitimate motives. A routing attack is a type of network attack where hackers intercept data while other node operators fail to identify anything unusual in the network. Since blockchain networks rely on the transfer of real-time data in huge quantities, routing attacks pose a significant threat to blockchain networks.
Phishing Attacks: Unlike all other attacks on the list, phishing attacks target individuals instead of an entire network. Scammers create dummy websites or applications impersonating authentic ones to lure users into transferring funds. Another method users use is fake airdrops or giveaways to scam people and fly siphon off money or digital assets.
Blockchain Security Services For Enterprises
Despite the highly secure blockchain architecture, several companies have fallen prey to the aforementioned attacks. It is probably time for you to rethink your security strategies. Public blockchain networks are a huge no for any enterprise. Participation must be limited and monitored. As a business owner, you ought to ensure the security of your company’s network. The natural approach is to limit participation to stakeholders and trustworthy individuals. Here are some points you must keep in mind even if you have adopted a blockchain solution for your network:
- Deploy smart contracts to ensure secure transactions
- Establish a Private or Permissioned blockchain network to limit participation
- Employ experts to take care of data security and backup
- Define governance architecture to avoid redundancy
- Partner will professional blockchain security service providers
Since blockchain is an evolving technology, you need to hire experts to run and maintain the network. Make sure you partner with a reputed blockchain security service provider to build a secure and robust network that is resistant to breach attempts.
Can You Really Use Blockchain For Network Security
Blockchain is the solution to ever-increasing irregularities in the financial industry or any other industry involving the transmission of funds or data. The fact that so many leading financial institutions and banks, including HSBC, JP Morgan, and Goldman Sachs, have adopted the technology is a testament to its resilience against the aforementioned exploit techniques. However, the performance of your blockchain depends on the reputation of the solution provider and the expertise of your in-house staff. As businesses thrive for higher network security, blockchain adoption is the way forward.