A Review on Blockchain Security

BlockChain security

Blockchain technology lies at the heart of cryptocurrencies however it does not just end here; the technology has gained a lot of popularity in recent years across industries due to its ability to protect networks and systems from cyber attacks and security risks. Blockchain is an emerging technology, it has attracted a lot of businesses due to its immutable and transparent nature. Businesses have benefited from blockchain’s features such as the technology’s decentralized system, easy and secure money transferring abilities as well as the capability to store and protect financial information and sensitive consumer data.

However, blockchain’s advancements come with a lot of challenges. Cyber security is a major concern for a lot of organizations as cyber-attacks are on the rise. Securing digital transactions and sensitive customer information is crucial for businesses hence taking the right security measures while using blockchain is equally important.

Future of Blockchain

Blockchain has gained ground across industries, allowing large organizations to reduce expenses such as third party fees payments as well as ensuring efficient transfer of money through blockchain. Blockchain enables businesses to store transactional information in real time which can be verified and stored easily. This technology cannot be changed or hacked, as data is stored in blocks chained to one another through cryptography; modifying one block can disrupt the whole chain/system; making blockchain the foundation for immutable ledgers. This is one of the reasons why organizations trust the technology, as it takes tight security measures.

The technology automates processes for financial transactions as well as financial record keeping resulting in swift results as well as reductions in costs. This is also highly beneficial for CRM in financial services where organizations have to securely store financial information in crm databases. In the upcoming years, blockchain will be able to replace digital data systems and replace traditional methods of storing and securing data. Distributed Ledger Technology and its immutable nature makes it very hard for hackers to access data stored in Blockchain as data is stored in a decentralized network; where all blocks are chained to one another making it harder to break the chain.
For consumer-centric organizations, securing databases for the future is a major concern as such businesses have to juggle with large numbers of sensitive consumer data. This is where blockchain can help businesses avoid data corruption as CRM blockchains enable them to maintain highly secure and encrypted repositories for sensitive information i.e financial transactions and personal customer details.

Types of blockchain security

Blockchain security is a complete risk management system for blockchain networks, consisting of assurance services, cybersecurity frameworks, and best practices to reduce the risks of fraud and cyber-attacks. Let’s look at the different types of blockchain security:

Public blockchains

In public blockchains also known as permissionless blockchain, all activities i.e. transactions that happen are completely transparent where the identity of contributors is anonymous. The software code is an open source hence anyone can participate in the core activities of the blockchain network. There are no restrictions as to who can view and audit the data in public block chains as the technology is fully decentralized in nature. Additionally, the public network is immutable making it more secure and immune to frauds. Examples of public blockchains include big names in the crypto industry such as Bitcoin and Ethereum.

Private blockchains

As opposed to public blockchains, the nature of private networks also known as permissioned blockchain is centralized. This network can only be viewed and accessed by those who have been authorized to join the private blockchain network. The network’s administrator sets a rule to decide who has permission to participate in the network and who doesn’t; making the network extremely private. Only those with access can make modifications to the network such as making transactions, running full nodes and validating changes. R3, IBM and Corda are some examples of private blockchain service users.

Hybrid blockchain

Hybrid blockchain is an amalgamation of both private and public blockchain where part of the system requires permission and authorization to be accessed whereas the rest is open to the public, accessible by anyone. This is quite convenient for organizations who like to keep some information protected i.e. sensitive consumer data in healthcare or banks however they want to keep some of the data open to the public. This type of blockchain is highly customizable but maintains transparency and security.

Consortium blockchain

In the Consortium blockchain, the network is managed by more than one organization instead of just one. This type of blockchain also consists of a combination of permissioned and permissionless blockchain; however the difference between hybrid and consortium blockchain is that in consortium blockchain, multiple organizations can collaborate on a decentralized network; making it more secure.

Security features of blockchain

  • Transactions can be performed in a secure network
  • The system requires authorization to be accessed; making it less vulnerable to cyber-attacks
  • Inaccessible to the public; better security
  • Highly secure and trustworthy
  • Immutable ledging system
  • Users require a private key to access the data
  • Smart contracts
  • Decentralized system; all users have access to real-time, share data

Blockchain security challenges

Blockchain technology is popular amongst industries for being inherently secure however this does not mean that the technology is not vulnerable to cyber-attacks and security frauds. Cyber criminals can still manipulate blockchain’s security and attack the network. Let’s take a look at some of the common threats to blockchain security:

  • Leakage of private keys and digital signatures
  • Phishing attacks
  • Routing attacks
  • Sybil attacks
  • Third parties security issues
  • Transaction privacy leakage

Final Thoughts

Blockchain is evolving rapidly hence in the upcoming years it is likely to attract more and more organizations across the globe. While the technology is known for its highly secure and scalable nature, the network is vulnerable to cyber attacks as well. This is where blockchain security comes; the blockchain network needs to be deployed as safely as possible in order to prevent hackers from attacking the network. As discussed above, there are many types of blockchain technologies; each with its own pros and cons. Choosing the right type of blockchain for your business is crucial along with the right blockchain security measures to protect your systems from cyber crimes and the possible threats to blockchain security. Additionally, businesses using CRM softwares such as Salesforce services and SugarCRM services can benefit from blockchain’s security features to ensure SugarCRM and Salesforce cyber security.