INFORMATION SECURITY 2 Investigating security of Block ✓ Solved

The blockchain or the Distributed Ledger Technology (DLT) refers to the digital currency that is exchanged on the internet. It is also popularly referred to as the “internet of value” since it is a unique currency that cannot be seen or touched but it has value. Blockchain technology began with the invention of Bitcoin, which was unpopular in the past but recently has gained worldwide attention with its value rising up to $10,000 per bitcoin. Blockchain has become popular due to its immunity towards security threats. However, there are many unforeseen threats that lie within the applications that rely on blockchain technology.

Blockchain technology tends to be one of the most insecure technologies despite its high immunity to cyber-attacks. People who have invested in cryptocurrencies can agree with this view. Most are very comfortable with using blockchain since they are convinced of its tight security features. This belief is a risk since the developers of these systems overlook vulnerabilities that may be existing. Most of the upcoming blockchains are not tested appropriately. They are used with just a few users but the performance when the system goes operational on a full-scale basis, the outcome is unknown. Other security threats to blockchain include endpoint vulnerabilities, vendor risks, the lack of some regulated standards, use of only public and private keys to access data, and also the rampant use of unprotected code. Many blockchain application developers over-rely on existing code hence they risk transferring weaknesses of previous applications to the new ones.

Paper For Above Instructions

Abstract

This paper investigates the security issues related to blockchain-enabled applications. While blockchain technology is often perceived as secure, various vulnerabilities threaten its integrity. By analyzing these vulnerabilities and proposing potential solutions, this work aims to enhance understanding of security measures essential in blockchain development.

Keywords

Blockchain, security vulnerabilities, distributed ledger technology.

Introduction

Blockchain technology, initially introduced as the backbone for Bitcoin in 2009, is a decentralized digital ledger that records transactions across many computers. This revolutionary technology is lauded for its security features, including cryptographic secure entries and an immutable ledger, which provides a level of transparency and auditability (Nakamoto, 2008). However, despite its advantages, a multitude of security threats exist that can exploit the complex architecture of blockchain systems.

Research Problem

The main issue revolves around the misperceptions regarding the security posture of blockchain applications. Many developers and users believe blockchain technology to be infallible, which can lead to negligence in implementing comprehensive security protocols. This paper examines these vulnerabilities, specifically focusing on endpoint vulnerabilities, smart contract flaws, and the repercussions of unregulated development practices.

Literature Review

According to Crosby et al. (2016), while the blockchain model effectively mitigates several types of fraud and unauthorized activity, it does not completely eradicate all forms of cyber threats. Studies indicate that the majority of blockchain applications fail due to security misconfigurations and insufficient coding practices (Karame et al., 2012). Furthermore, the reliance on public-private key cryptography introduces new types of vulnerabilities, as keys can be susceptible to loss or theft (Swan, 2015).

Proposed Design

To address the emerging security concerns, blockchain developers should adopt a multi-layered security approach that includes auditing smart contracts, regular vulnerability assessments, and comprehensive security practices. Regular code review and utilizing formal verification methods can significantly reduce the risk of vulnerabilities (Huang et al., 2020). Moreover, adopting industry standards for development could enhance the overall security framework in blockchain applications.

Conclusion

In conclusion, while blockchain technology holds a great promise for securing digital transactions, it is vital to acknowledge and address the security vulnerabilities present in blockchain applications. By cultivating a thorough understanding of these risks and implementing robust security measures, developers can protect their applications and maintain user trust. The continuous examination and evolution of security practices will be crucial as blockchain technology becomes more integrated into various sectors.

References

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