In August 2010, a Bitcoin network error was discovered that allowed you to add large transactions to the book without proper hacker verification. The hacker produced 184 billion bitcoins (BTC) and sent them to three separate accounts. Fortunately, the bug was quickly identified and deleted by the blockchain developers. The existence of the blockchain can actually be threatened if the hacker succeeds.
Since the advent of blockchain technology, many industries have adapted the technology to store and transfer large amounts of data. The technology had an iron defense system that was obviously impervious. The industry has flourished beautifully. However, the secure and decentralized system is threatened by hackers, scammers and various scammers. According to the Wall Street Journal, he lost more than $ 4 billion due to scams in 2019.
What is the security of building blockchain?
Blockchain technology is a decentralized digital ledger that prides itself on strong peer-to-peer encryption to verify transactions. Using a separate transaction verification protocol, defective processes are easily detected. Security in blockchain technology depends on:
Encryption: a method of protecting a wallet, where each user receives a unique key, called a “hash”. Segmentation is a mathematically generated process in a public key encryption where a given and fixed output is generated regardless of how many times the function is used. Simply put, this is a security key for every user – his wallet.
Mining: Mining is a complex and costly process that is responsible for maintaining the integrity of the technology. Minerals blockchain adds new “blocks” of transactions to the chain, ensuring the correctness of each part of the transaction. In return, they are assigned cryptocurrency.
Stability: it can be said that the most important component of the technology, the distributed registry, remains unchanged. Technological instability means that information cannot be deleted from the platform after transaction verification.
How do fraudsters manipulate technology?
Blockchain technology has undergone various forms of attack since its launch. Several attacks were targeted at cryptocurrency wallets and stock exchanges. Here are some of the most popular ways to handle blockchain technology.
51% attack: mining is a very intensive process that requires high computing power. However, if miners or a group of miners receive more than 50% of the data network by default, they will be able to monitor and process them. They will be able to add new transactions to the system at no cost. Thus, they will “spend double money.” Perhaps the most alarming attacks are 51% of attacks in May 2018, when a series of Bitcoin Gold blockchains were attacked by a series of coordinated actions. A total of $ 70,000 dollars was spent on Bitcoin Gold (BTG) twice, after which BTG was removed from Bittrex. In January 2019, the Ethereum Classic became the last blockchain hit by 51%.
Phishing Phishing is a form of fraud where fraudsters send emails that mimic messages from reputable companies. They send it to the owners of the wallet keys and ask for their personal information in their fictitious links. Some phishing scams use a user’s computer as a site for illegal mining of cryptocurrencies. According to a report published by Chainalysis, blockchain investors lost more than $ 225 million due to phishing attacks in the first half of 2017.
Sybil attack: The Sybil attack involves the creation of multiple fake identifiers in a peer network. In connection with blockchain technology, different nodes work simultaneously, the network is filled with these false identities and leads to system errors. The term is derived from the glorious nature of the Siebel book, which was diagnosed with separatist personality disorder.
Routing: Blockchain technology is based on loading and downloading a large amount of real-time information. In a grid attack, hackers intercept data transmitted to ISPs. Thus, the system is corrupted, but seems to work as usual. Meanwhile, hackers are fleeing for currencies.
What measures are being taken to prevent cryptocurrency scams?
As expected, exchange companies, symbols and blockchains realized the need to learn from the past, identify and combat trade union fraud.
In an interview with Kevin Cheng, operations manager at BigOne, he explained:
“For exchanges, security is the life force without anything logical. Every investor on the blockchain platform is interested in what ensures the security of his investments. If there are loopholes in any symbolic phrase, we will do our best to eliminate them before listing them in our stock exchange. ”