k_Street Consulting, LLC Blog

Is Blockchain a Shield for Cybercrime?

Is Blockchain a Shield for Cybercrime?

Blockchain technology is all the rage these days. Business owners are going to start hearing this buzzword as a bullet point in software solutions. Developers from all over the world are trying to harness the power of encrypted, distributed data, mainly due to the reputation that blockchain has regarding the “unhackable” permanence of the data stored upon it. However, it as powerful as blockchain is purported to be, it isn’t totally infallible.

How Blockchain Has Been Shown to Be Vulnerable

Let’s face it… blockchain technology is a human invention, which means that there are going to be some flaws.

Admittedly, the concept behind the blockchain makes this hard to believe: every transaction made through the blockchain, financial or data-based, is given a permanent, designated “block” in the chain. Before the transaction is completed, the rest of the network needs to approve this new block’s validity. The block is then added to the chain, where it cannot be altered and provides an unchangeable record of the transaction - to undo it, a new block would be created. It is only then that the transaction is completed.

While this method may seem foolproof, even “unhackable”, this just isn’t the case. In March of 2014, cybercriminals managed to steal $450,000,000 worth of Bitcoin through a transaction mutability vulnerability, and in June of 2016, cybercriminals managed to steal approximately $60,000,000 by leveraging a recursive calling vulnerability.

Additional Blockchain Vulnerabilities

Again, as a human creation, there are going to be some flaws in blockchain platforms. One investigation revealed that some blockchain and cryptocurrency platforms had over 40 vulnerabilities.

51% Vulnerabilities

Many of blockchain’s vulnerabilities have more to do with the nature of the platform as well. One such vulnerability is known as a 51% vulnerability, and is associated with mining cryptocurrencies. Let’s assume you are a cryptocurrency miner. If you manage to accumulate hashing power that exceeds more than half of what the blockchain contains, you could leverage a 51% attack to manipulate the blockchain to your own advantage.

Naturally, more popular blockchains, like Bitcoin, are far too expensive to be practical targets, but smaller coins are much more affordable to attack and can be lucrative for hackers. In 2018, 51% attacks were leveraged against less popular cryptocurrencies, netting the attackers approximately $20 million.

Security of Private Keys

Using a blockchain requires a user to have a private key. Naturally, if this key were to be stolen, those cybercriminals who stole it would be able to access and tamper with that user’s blockchain. What’s worse, because the blockchain is decentralized, these kinds of actions are difficult to track and even harder to undo.

Breach Examples

As you might imagine, most breaches involving a blockchain are in some way tied to an end user. In 2017, a fraudulent cryptocurrency wallet service was left up for months as the cybercriminal responsible allowed people to funnel their cryptocurrencies into it before stealing $4,000,000 - out of a reported total of $2 billion being stolen since 2017 began. In January 2018, it was disclosed that hackers stole private keys with malware, taking over $500,000,000 in NEM coins (a now-effectively-worthless cryptocurrency established by a nonprofit).

If hackers are able to steal from a purportedly “unhackable” technology, what’s to stop them from stealing from your business?

Cybersecurity solutions from k_Street Consulting, LLC, that’s what. We can set up the security solutions your business needs to protect its data, and monitor your systems to detect breaches preemptively, preventing a security issue from happening. To learn more about what we can do, reach out to us at (202) 640-2737.

What Does Your Business' IT Infrastructure Look Li...
Tip of the Week: Company Culture Can Be a Huge Bus...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, June 25 2019

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Cryptocurrency Data Warehousing Cybercrime Vulnerability Safe Mode Pain Points Save Money Public Computer Business Computing Identity Theft Infrastructure How To Excel Virus Software Fax Server Internet Exlporer eWaste Legal OLED Collaboration Online Currency Private Cloud Holiday Computer Thank You Keyboard Smart Technology Wireless Internet Congratulations Budget iphone Business Technology Virtual Private Network Experience Memory Audiobook Operating Systems Line of Business Google VoIP Business Mangement Regulation WiFi Authentication Outlook Analytic WIndows 7 Telephone System Smartphones IT Solutions Tip of the Week Analyitcs Restore Data Access Control Remote Computing Benefits PDF Virtual Reality Remote Monitoring and Maintenance Passwords Managed Service Netflix Phishing Software Tips Big data IT Plan Networking Storage Social Networking Printers Windows 8 How to Digital Payment Current Events Amazon Web Services Wireless Technology User Millennials Comparison Data Security PowerPoint VPN Saving Time Best Available Office Tips Project Management Solid State Drive Disaster Recovery Virtual Desktop NIST IT Support IoT The Internet of Things Telecommuting Hosted Solutions Workplace Tips Statistics Safety Windows Server 2008 Advertising Meetings Hacker File Sharing Cast Value Techology Patch Management Remote Worker Flash Television Hardware Knowledge Worker Commute Content Filter Gmail Innovation Chromecast History Display Practices Bandwidth Virtual Assistant Hacking Backup SharePoint Router Mobility Retail Word Saving Money Mobile Device Management Wireless Shortcuts Microchip Multiple Versions Unified Communications Digital Signage Printer Quick Tips Intranet Inventory Business Owner Internet of Things Trending Smart Office Document Management HBO Hard Drives Politics Windows 10 Applications Screen Mirroring IaaS Wireless Charging Cost Management IT Support BDR Mobile Device NarrowBand Microsoft Office Audit Two-factor Authentication Sports Data Content Filtering Update Criminal Shadow IT IT Consultant Mobile Computing Credit Cards Automation OneNote Security Troubleshooting Worker Windows 10s Data storage Nanotechnology Default App Blockchain MSP Charger Search Engine Emails Insurance Data Backup Social Telephone Systems Battery Students Robot Science Remote Monitoring Network Congestion Company Culture Customers Investment Servers Hring/Firing Data Storage Internet exploMicrosoft Office Product Reviews 5G Staff Best Practices Database Fiber-Optic Humor Efficiency IT Management Hackers Network Security Uninterrupted Power Supply Workers Risk Management Computer Repair Small Business Training File Versioning Employer-Employee Relationship Password Unified Threat Management CrashOverride Paperless Office User Error Government communications Google Search Application Amazon Cabling Technology Firewall Domains Hiring/Firing IBM Settings GDPR Wearable Technology Utility Computing Entrepreneur Laptop Business Management Biometrics Downtime analytics Smartphone Read Tech Support Browser Scalability Smart Tech USB ROI Spam Blocking Proactive Best Practice Administration Mobile Wi-Fi BYOD Hosted Computing Regulations Music Botnet Bing Windows 10 Vendor Windows 7 Encryption Spam Social Media Monitor LinkedIn Assessment Computers Website Theft IT Services Recovery YouTube Managed IT Services Google Apps malware IT service Ransomware Tablets Users Windows Electronic Medical Records Cleaning Work/Life Balance Addiction Proactive IT Wiring Computing Infrastructure Data Recovery Public Cloud Windows Media Player Outsourced IT Conferencing webinar Black Market Net Neutrality Data Protection Employee/Employer Relationship Physical Security User Tips Artificial Intelligence Business Continuity Network Gadgets Tools Password Manager Gaming Console Data loss Manufacturing Professional Services Tech Term Apps Tablet Money Telephony Colocation Streaming Media Social Engineering Redundancy Managed IT Facebook Information Voice over Internet Protocol Employer Employee Relationship Evernote Remote Maintenance Specifications Privacy Shortcut Cables Administrator Running Cable Sync Cortana Law Enforcement Machine Learning Emergency Managing Stress Recycling Instant Messaging Customer Relationship Management E-Commerce Books Communication Webinar Content Management IT Infrastructure IT solutions Computer Fan Phone System Archive Android Business Intelligence Twitter Supercomputer Managed IT Services Transportation Samsung Distributed Denial of Service Programming Business HaaS Software as a Service Email Camera Internet Lifestyle Mobile Office Touchpad Hybrid Cloud Smartwatch Cameras Marketing Content Electronic Health Records Environment Google Docs People Computer Accessories Customer Service Hosted Solution Leadership Two Factor Authentication Password Management Proactive Maintenance Point of Sale Health Mouse Workforce Notifications Scam Fraud Going Green Rootkit eCommerce Mobile Devices Video Games Computer Care Augmented Reality Root Cause Analysis Office 365 Cloud Computing Automobile SaaS Education Devices Managed Service Provider Enterprise Content Management Logistics Data Breach Thought Leadership Save Time Data Management Reputation HVAC Alert Loyalty Analysis End of Support CES Consultant Skype Bloatware Tip of the week avoiding downtime Distribution Entertainment Compliance Operating System Cloud Google Drive Accountants Remote Work Virtualization Start Menu Chrome Relocation Frequently Asked Questions Files Miscellaneous Backup and Disaster Recovery Human Resources Server Printer Server Information Technology Strategy Multi-Factor Security DDoS Cybersecurity Vendor Management Bluetooth Cache Productivity ISP Microsoft Digital Signature Antivirus Bring Your Own Device Biometric Security Productivity Touchscreen Healthcare Warranty App HIPAA travel Security Cameras Upgrade Online Shopping Maintenance Cryptomining Employee Apple FENG Unsupported Software Connectivity Flexibility Search Wire Help Desk Lithium-ion battery

Sign up for our Newsletter!

  • Company Name *
  • First Name *
  • Last Name *