To this day, there are critics who question the sustainability, scalability and security of the blockchain network despite the fact that it has gained the attention of corporations globally. In order to generate world-class services and solutions for its clients, like many others, Deloitte partner companies around the world are collaborating to form their version of a blockchain consensus consortium. However, there are few assessments made by Deloitte partnering companies in regard to the security mechanism of the blockchain technology, which are as follows:
• The security mechanism tends to form public and private ledgers through a data and system’s perspective, thereby reaching blockchain’s current level of security.
• To assess the current level of maturity of the technology, it uses the CIA triad model, which comprises of three key areas: availability, confidentiality and integrity.
• As fundamental security aspects for managing new networks and systems and for protecting information, the significance of non-repudiation and authentication, authorization and audit (AAA) is addressed.
No system has ever been built that’s 100% safe in terms of cyberdefense. Knowing cybercriminals are constantly seeking new ways of attacking systems and the lucrative nature of cybercrime, whichever system is considered to be safe today will surely not be tomorrow.
The ability of a blockchain to mimic other network systems, standards and cybersecurity controls is essential in terms of adoption for organizations making use of blockchains in their technical infrastructure.
Security Risks Attached To Private And Public Blockchains
Public blockchains — like the most popular Bitcoin blockchain and others like Ethereum, IOTA and more — are designed to be accessible by anyone with a computer and internet access. They were intended to dispose of the requirement for a middleman. Redundancy makes these public blockchains slow and resources intensive due to the computational capacity and power that’s required to carry these transactions. However, on the flip side, it makes them amazingly secure. Open public blockchains are most applicable where a pure decentralized transaction needs to occur.
The Bitcoin network, for example, can process seven transactions per second, whereas Ethereum can process approximately 15-20 transactions per second.
Here are just a few of the many public blockchain security risks:
• Blockchain code is still in its early stages and might be liable to presently obscure security vulnerabilities. Specifically, the Ethereum contract language is fairly new and there might be zero-day attacks that programmers could misuse.
• A genuine risk for the blockchain is the double-spending attack in which an attacker effectively goes on to make more than one transaction while utilizing only one coin and bringing about discrediting the “fair” exchange.
• The private key holders of each account are the ones on which the reliability of each entry rests.
The partial reestablishment of the intermediary is done through private blockchains. By setting rules that are kept in place by either the starter of the system or by the starter of the network, nodes in a private blockchain network are validated and thereby require invitations.
In general, the firms that set up a permission network are the ones that opt for private blockchains. This way the restriction on the access to the networking system is made on a few specific transactions. An invitation or permission needs to be obtained by the participants in order to join. However, after joining the network, the entity will have a key role in maintaining the decentralized nature of the blockchain.
Here are a couple of the private blockchain security risks:
• The treatment of intermittently active or uncommunicative nodes. For inoffensive reasons, nodes may go offline; however, the framework should be built to operate devoid of the offline nodes.
• The verification process may be allowed to be performed by only certain nodes through administrators. The newly validated and verified transactions are then communicated to the rest of the network by trusted parties.
Inventive Uses For Blockchain Security
Creative utilization for blockchain innovation is now going beyond digital forms of money and can be particularly helpful to support cybersecurity. NXM Labs and Sirin Labs are just a couple of companies at the forefront of this movement. By executing thorough encryption and information appropriation conventions on a system, any business can guarantee that their data will remain secure and not allow systems operators to be able to modify it.
As more individuals join, the overall web and innovation will keep on growing, more information will get delivered, and more programmers will endeavor to take or degenerate that information. The innovation behind blockchain is flexible and amazingly helpful for the eventual fate of the web, enabling clients to secure their information.
Future Of Blockchain Security
Information storage systems and database management will see a huge incursion of blockchain-secured systems in terms of the applied blockchain. Blockchain databases like BigChainDB are providing inventors with measurable blockchain-based databases for big data processing.
In light of their expanded security, I believe blockchain-based fintech contributions will keep on springing up. Enterprises will keep delivering protected transaction-related innovation. Deloitte’s Rubix has already been on the market for several years, while MasterCard now has its own distributed public ledger offering. Due to events like the Equifax catastrophe, data security and corporate uprightness have both taken a blow. This is where blockchains may actually come to the fore and complement cybersecurity.