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Security Challenges in Blockchain

Blockchain has taken the cashless transaction mechanics by a storm and has a big potential to revolutionize the IT and financial sector in a powerful way. For most people the first thing that pops out in Blockchain’s context is Bitcoin and deservedly so given the popularity of the latter. Blockchain simply put is a series of chronological blocks or a ledger of immutable and unchangeable data integrated into a chain. But the word has much more meaning to it than just the literal interpretation and is ever growing in Popularity.

Blockchain is quickly growing from its roots as a cryptocurrency and making breakthrough in Governments and various industries like healthcare, real estate and transportation. As bitcoin approaches its highest price of 2019 it is safe to say that the strongest move for blockchain is yet to come. Even Social media giant Facebook has launched its own cryptocurrency called Libra only recently this year.

But even as it makes it step towards the big league Blockchain still has a critical chunk in its armour and that is its big end to end security lapses which can be exploited and rob people of their investment. This is both a threat to existing investors and a strong deterrent to fence-sitters and potential investors.

For Blockchain to truly evolve it has to come up with new ways to ensuring robust and hard to exploit security framework and end to end dependable and reliable encryption which is hard to hack and exploited by cyber criminals.

Some of the challenges that need to be overcome by the Blockchain industry in order to engender growth are :

  • Lack of Regulations & Standards : Blockchain as a whole has one major problem of not having a universal set of rules and regulations governing all of the Blockchain functions and Process
  • Untested Code : Code for Blockchain are not properly tested as they should be before being deployed and even allowed for use at full scale. One major example of this is the 51% problem, this hypothetical threat could materialize if a significant number of participants conspire against the rest of the participants.
  • Public and Private Key Security : These keys are of cryptic length having variable characters. Requiring both Public and private key to access a block is synonymous with blockchain functionality. This represent both its strength and a critical weakness as all a hacker need is the correct key to access your data and manipulate it like they want.
  • Vendor Risks : Third party blockchain vendors having weak security systems for their own site, flawed code and even personnel vulnerabilities can expose their clients blockchain credentials.

A third party Security Specialist can do wonders for the end to end robust and verifiable security for Blockchain Based solutions.