Soft2Secure

Guarding the chains: Imperative of security in blockchain applications

Blockchain applications are an innovative way of maintaining records and accomplishing transactions. Consider it as a numeric ledger allotted throughout many computer systems instead of being saved in a single blockchain applications area. Every transaction is grouped into a block, which is related in a series, forming the “blockchain”. This science received a reputation with the advent of Bitcoin, the first virtual currency; however, it is used in numerous industries.

Security threats to blockchain applications

Blockchain applications offer exciting possibilities, but just like any digital system, it’s not completely protected from security threats. Blockchain’s growth leads to diverse applications and the market may reach $1.43 trillion by 2030 (CAGR 85.9%). Here are some threats broken down simply, along with relevant statistics:

1. 51% attacks

Imagine a game where one player controls more than half the players. They could change the rules at will. Similarly, a 51% attack happens when a single group controls over 50% of a blockchain’s power, enabling them to manipulate transactions. In recent years, some smaller blockchains experienced 51% attacks, leading to losses of thousands to millions of dollars.

2. Sybil attacks

In these attacks, an attacker creates multiple fake identities to gain control of a network or influence decisions. Around 74% of blockchain-based systems have experienced Sybil attacks, as reported by researchers. In 2022, there were over 100 Sybil attacks targeting blockchain networks.

3. Malicious code

Malicious code, such as viruses, worms, and trojans, can be introduced into blockchain technology, which can manage data theft, fraud, or denial-of-service attacks. In 2022, over 100,000 malware attacks were pointing at blockchain-based applications.

4. Denial-of-Service (DoS) attacks

DoS attacks can be used to overwhelm blockchain networks, making them unavailable to legal users. In 2021, there were over 500 DoS attacks targeting blockchain networks.

5. Insider threats

Even within a blockchain organization, employees or individuals with access can misuse their privileges to compromise security. Insider threats account for around 34% of cybersecurity incidents, as per a survey.

6. Replay attacks

Replay attacks can be used to replay old messages on blockchain networks, which can lead to double-spending or other fraudulent activities. In 2022, there were over 100 replay attacks targeting blockchain networks.

At the same time as these threats exist, it is important to keep in mind that blockchain technology continues to adapt to handle those demanding situations. With the proper protection practices and ongoing studies, the capability advantages of blockchain can still be harnessed meanwhile minimizing dangers.

Security measures for blockchain applications

Blockchain technology has become continuously popular due to its decentralized and comfortable nature. To maintain the security of these applications, multiple measures are collected.
In 2021, the research highlighted that 90% of agencies that use Blockchain had been involved in protection risks. As feedback, the combination of Multi-Factor Authentication (MFA) and biometric solutions gained momentum. Through 2023, information confirmed that MFA adoption had expanded by over 50% in blockchain programs, making it harder for unauthorized access.

I. Cryptography

Cryptography is crucial for protecting blockchain data. In 2022, quantum-resistant cryptography gained interest due to the capability danger of quantum computer systems. This led to a surge in studies and improvement in this region, with over 30% of blockchain projects incorporating quantum-resistant algorithms by 2023.

II. Data encryption

Data encryption is used to protect sensitive information from unauthorized access. This may be performed via encrypting records before it is saved in the blockchain or using encrypting data in transit. In 2022, the usage of information encryption in blockchain technology extended by 40%.

III. Blockchain solutions

Blockchain technology is expected to see a crucial surge in spending in 2023, with universal spending on blockchain solutions projected to reach $14.4 billion.

IV. Supply chain security revolution

Supply chain safety, specifically in industries like pharmaceuticals, witnessed a change. In 2021, 30% of pharmaceutical companies using blockchain declared fake incidents. Using 2023, blockchain-enabled traceability systems were followed by 60% of pharmaceutical organizations, resulting in a 75% reduction in dummy capsules.

V. Blockchain security budgets

The growing division of cybersecurity budgets to blockchain operations displays the growing popularity of the significance of safety. In 2021, a mere 5% of blockchain budgets were set apart for security measures. By 2023, this allocation had doubled, with approximately 10% of budgets being dedicated to setting up robust safety infrastructure. This shift underlines the enhanced consciousness within the business about protecting blockchain technology and networks from the developing threats of the digital landscape.

Going forward

Security is crucial in Blockchain Applications. 90% of organizations expressed security concerns in 2021. As the blockchain era continues to expand its reach and find programs in different sectors, the emphasis on security investments will become no longer the simplest strategic choice but additionally, an important necessity to ensure the integrity, confidentiality, and availability of sensitive information and transactions. 5/5 (1)