Can Blockchain Technology be Hacked?
The hacker is trying hard to read and reverse hidden
transactions in the blockchain arrangement. However, the nature of Blockchain
Technology makes this type of hack proof. Blockchains are hypothetically
manipulative because "They use a
cryptographic fingerprint for each block in the blockchain and uses “Different Consensus Algorithm like POW, POA,
POS, RIPPLE, etc for their Security transmission” i.e each computer in the network agrees to
share the transactional history associated with one another.
A study led in 2017
by The World Economic Forum shockingly gave further direction that we can
expect up to 10% of worldwide GDP on the blockchain by 2025. For this to happen
blockchain innovation should supplant the immense area of legacy Systems
currently used in finance, government, business and public records in less than
a decade. Supporting the size of the upgrade that would incorporate the Harvard
Business Review recommends that "blockchain can possibly make new
establishments for our financial and social frameworks."
The Two basic properties of Blockchain Technology
that are related with the innovation are: Firstly, the proficiency of a decentralized framework. The fact that blockchain
applications overcome the need for intermediaries to provide confidence means
that it can make many processes cheaper and more efficient. The Secondly, blockchain is naturally an
exceptionally secure innovation. This decentralized nature and
cryptographic calculation makes it insusceptible to assault. Indeed, hacking
blockchain is close to unimaginable. In reality as we know it where digital
security has become a significant issue for individual, corporate and national
security, blockchain is a conceivably progressive innovation. Hence the question, Blockchain Technology
be Hacked still remains unanswered.
Is Blockchain Really Secure?
The capacity of blockchain to secure resources and
transactions depends primarily on the decentralized circulation of information and controls that
form the core of the innovation behind the technology. Since any information is
replicated across a large number of nodes (or computers), destroying or
modifying information simultaneously on one or several nodes will not affect
the integrity of the blockchain. This decentralization makes the storage of
information on the blockchain more secure than centralized storage systems.
Centralized storage of data is highly insecure as there is only one point of
failure, which is the total collapse of system security when compromised.
All stored data is shared multiple times between all nodes of the
network. As mentioned above, the Blockchain self-updates every ten minutes. In
a Blockchain, information is treated as a shared file.
Shared information is easily verified and accessible to anyone in the
network. It also ensures that data cannot be stolen and synchronized with other
files. Most importantly, because there is no central point, data cannot be
corrupted or attacked.
The ledger can be shared with a private group of users connected via the
local area network or with thousands of people on the Internet. A message is
relayed on the creation of every new block, to ensure that all users have a
latest version. This feature has applications well beyond digital currencies,
as it eliminates the need for a trusted central party to record information.
Unlike other websites, which can be easily attacked despite security
passwords, in a Blockchain, data is shared between multiple nodes with no
central point, so it cannot be stolen. Instead of a physical or online
account that is to be maintained by a third party, each unit of data is stored
on the Blockchain itself. Users can access data securely using their private /
public key pairs. Once a transaction is relayed across the Internet and
included in a block, it is considered permanent.
Every information in the Bockchain is cryptographically hashed. In other
words, information on the network hides the true nature of the data. For this
process, any input data is obtained through a mathematical algorithm that
produces a different type of value, but the length is always fixed.
The data is completely secure just because
of encryption with private and public keys. The public key is
randomly shared as a long string and shared publicly. On the other hand, the
private key is used as a password to access users' data. Therefore it is
governed with high security consensus algorithms and hash key which maintain
its overall environment.
Additionally, this technology Irreversibility, i.e that if something is entered into the system
of Blockchain it cannot be tampered
with. As it is controlled by the cryptographic hash function in the
entire network of the system. The hash function is a mathematical function that
creates a unique variable number of characters each time and converts it into
strings with fixed characters. A small change in the string also creates a new
hash value of that particular node in the system.
Therefore, if this system is
so secured then what’s make them Hackable? Can Blockchain Technology be Hacked? Let’s have a view on different Case Studies, that can
prove this theoretical thesis, as Hackable .
Case Study:
First Blockchain hack online in June 2011.
Loss: $50,000 (2609 BTC)
This is one of the well-known blockchain hacked scenario ever.
Clearly,, the cyber-criminal got tightly to the reviewer's certifications and
afterward abused those to get into the framework. More so, the attacker then
changed the value of 1 BTC to 1 cent. Besides, the attacker also collected 2609
from different customers that sold the BTC at this exceptionally low cost. From
that point onward, he/she even bought back 650 BTCs from another record too.
Second Blockchain hacked in March 2014.
Loss: $350 million (750,000 BTC)
The second attack was even worse. Hence, this time, the attacker found
out about a bug in the codes and saw that exchanges are increasingly adaptable.
All the more in this way, anybody could alter the detail of the exchange and
make it seem as though that it never at any point occurred. So, Eventually it
become a kind of like double-spending.
Hence, the attacker manipulates the sender’s signature before it get permanently stored in the distributed ledger.
The Hacker also changed the transaction ID. The new ID and changed transaction
can overwrite the original transaction details and make it seem as though that
the receiver didn’t get any funds.
Hence, there are numerous of
such case that has happened. So, from
the above we can simply conclude:
1. Is Blockchain
really secure? Or can be hacked.
2. Maybe these cases
happened in past long ago and that time blockchain technology was not that
secure as it was in its initial stages but now as the technology grew every
day, it has made it secure.
3. Still some possible
scenario that can leads to hack -able situation in this emerging technology.
Blockchain Hacking: Can Blockchain Technology be Hacked?
Possible Scenarios for Hacking--
Since blockchain should be amazingly secure and unalterable, numerous
people have named this innovational technology as "unhackable". However,
recent occurrences have shockingly
indicated that programmers can get to blockchains in specific circumstances.
This incorporates the following situations:
1. 51% Attack
A blockchain network is essentially a arrangements of
computers where the decision of the majority is taken as a whole. During the verification in the process,
individuals node is referred as “miners” will review the transactions to ensure
they are authenticate and genuine. When one or more hackers gain control over
half of the mining process, there can be extremely negative consequences A 51% attack aims to exploit this feature of
blockchain networks and manipulate transactions.
In a 51% attack, a single
entity of node can gain the overall control of the majority of nodes on a
blockchain network and use them to alter transactional process in their favor. The attack may just happen but if 51% of the nodes in the network lie,
then the lie has to be accepted as true.
This type of attack vector is usually carried out on smaller node network, ,
where it's simpler to gather most of mining or preparing power. Such attacks would be difficult to carry out on
larger networks, such as Bitcoin and Ethereum, since gaining the majority on
these systems would be excessively hard and costly for any single
gathering.
2. Sybil Attack
The strength of blockchain networks lies in the
presence of a vast number of different users and nodes to validate
transactions. A Sybil attack is when a large number of nodes on a blockchain
network are controlled by a single entity or individual groups, that pose as
multiple different users using fake identities.
Sybil assaults, in spite of the fact that don't actually hack into the
blockchain engineering or debilitate the framework, they basically empower
assailants to misuse the way blockchain capacities. With enough nodes under
their influence, they can essentially centralize
the blockchain network, and partially will make a decentralized system to look as a centralized one
3. Creation Errors / Mistake
Sometimes, there might be security glitches
or blunders during making of blockchain. This might be progressively regular
with bigger, increasingly mind boggling blockchains. At the point when this
happens, programmers searching for a path in can distinguish the
vulnerabilities and endeavor an assault. This has unfolded with smart
contracts, which utilize a blockchain system to work. Normal elements of smart
contracts incorporate helping with the budgetary part of agreement dealings and
mechanizing undertakings.
Lawful experts may experience smart agreements in
their training, in the case of utilizing them inside or through introduction
from cases and customer issues. In the event that a security defect exists on
the blockchain organize where a smart contract works, hackers might have the
option to take cash from clients without being identified in light of the fact
that the fraudulent activity is not reflected.
4. Denial of Service Attack
A blockchain Denial service attact
works along same fashion. The hackers
direct enormous volumes of "Fake" or invalid transaction to
blockchain nodes and make them unequipped for handling the transaction that are
really required by the blockchain arrange. This
slows down the blockchain and it temporarily stops from processing client further requests. The
result of a Denail Service Attack is an extremely inefficient blockchain
network that cannot keep up with the demand for service.
5. Insufficient Security
Many blockchain hacks have occurred on
trades, which is the place clients can exchange cryptocurrecy. In the event
that the security works on encompassing the trades are weak, hackers will have
simpler access to information of data.
6.Eclipse Attack
Eclipse attacks target single individual nodes to
isolate them from blockchain networks and redirect their processing power for
the hacker’s purposes. This can also be used to redirect funds to the attackers
desired wallets without the victim realizing about any kind of attack on their
system. Since the victim’s computer is isolated from the main blockchain
network , they are unable to observe the
fact that they are not participating in their desired blockchain server. Therefore,
Eclipse attacks can also be used to hack and
isolate a group of interconnected nodes in the network.
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1 Comments
There is a possibilities......
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