Fraudsters are ready to exploit the blockchain security

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network which has gained popularity in recent years. It offers a unique structure for data accompanied by in-built security qualities. Blockchain relies on the principles of consensus, decentralization, and cryptography for ensuing trust in transactions. However, blockchain security issues have continued to trouble many organizations and early adopters. Apart from its initial application in cryptocurrency, it is now being used in healthcare, real estate, smart contacts, and other fields.

The technology has been a great example of how security tenets in financial transactions and information transmission are transformed. It provides a one-of-a-kind data structure as well as built-in security features. Blockchain is based on the ideas of consensus, decentralization, and cryptography to ensure transaction trust. However, many blockchain security issues have arisen due to faulty technology implementation. A blockchain network can track orders, payments, accounts, production and much more. Because of the members sharing a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and opportunities.

Blockchain technology basically involves the storage of different bits of digital information, known as blocks, in a public database. The blocks of information have cryptographically secure links between them. Blockchain has become popular largely because of the limitation on ‘double spending.’ Blockchain does not allow the use of the same currency on two different transactions. All descriptions of blockchain technology point out towards cryptography, immutability, and decentralization. With cryptographic security and the assurance that no one can modify data without the knowledge of other participants, blockchain definitely seems secure. Blockchain can give you a tamper-proof account of transactions.

However, this does not mean that blockchain is not vulnerable to cyber-attacks and security fraud. People with malicious intent could exploit the blockchain security vulnerabilities to their advantage. Many such examples of blockchain attacks have made news from time to time. The next prominent concern for security and privacy issues of blockchain technology refers to routing attacks.

Finally, the Blockchain networks and applications depend on the massive volume of data transfer in real-time. Now, hackers could easily intercept data during the course of its transmission to internet service providers. The dangerous aspect of routing attacks in blockchain security lies in their anonymity.