Blockchain is the rising technology of digital cryptocurrency Bitcoin. The blockchain is a circulated data set of records of all exchanges. This has been dividing between taking interest gatherings. Every exchange is undeniable by most members of the framework. It contains each record, all things considered. This can also provide secure transactions and speed up data transfer processing. This technology records exchanges in computerized records. This can circulate over the organization along these lines making it upright.
Need for Blockchain
- Blockchain will improve the scope of a business
- Helps in verification of multi step transactions
- Blockchain confines fakes
- This is solid and straightforward
- Unchanging ie, can’t be exchangeable
- Transparency feature
There are a few advantages to consider
There is no need for focal power check for settlements making the cycle quicker and less expensive
- Cost saving
The blockchain network decreases costs in more ways than one. One of the significant viewpoints is that there is no need for outsider confirmation. Members can share resources . No contribution of delegates. Minimization of exchange impacts as each member has a duplicate of shared record.
- Higher security
Nobody can treat blockchain information. As it is shareable among a huge number of members. The framework is protected against cyber crimes and extortion.
Types of Blockchain Hacks
Posing as different unique users to exploit the consensus mechanism
- 51 percent
51 percent of attacks involve the attacker being able to gain control of more than 50 % of the hashing power.
DDoS attacks are made to overwhelm a bottleneck. However, this is within the software or hardware on a blockchain node.
Eclipse attacks are a special type of attack. However, In this, an attacker creates an artificial environment around one node.
Major Points to Consider
Below are some major points to consider:
- Decentralized and Open Source Protocols
This is one of the major aspects in the blockchain network. The blockchains behind most cryptocurrencies are:
- Peer to peer
- Open source and public
- Reliable and transparent
But, this allows everyone with the right equipment and knowledge. This helps them to take businesses to the peak level. This is important to increase transparency and attract buyers. However, this technology comprises different technological mechanisms working together towards a common goal. For example, Such types of mechanisms are
- Proof of stake
But, these mechanisms protect the network by mitigating cyber attacks from hackers. The Decentralized nature of blockchain is the major concept. This means its network is distributed across many computers known as nodes. This removes a single point of failure.
The architecture of a blockchain consists of the elements like a node. ie, Computer that has a complete copy of the blockchain ledger. For example, In the case of Bitcoin, and other systems like Bitcoin cash. In this a least of 51 percent of the nodes must agree to the transaction before commitment.
Other Points to Consider
- Hashing Algorithm
This is another most major aspect in the blockchain network. Each transaction is known as a block. And the group of several transactions become a blockchain. But, a block has cryptographic elements that make it unique. A network’s hashing algorithm determines the details. For example, a bitcoin blockchain uses the double hash function. This takes transaction data and hashes/compresses it into a 256- bit hash.
- 50-51 % attacks are Improbable
In blockchain technology, the longer it exists and the more new users it attracts. This is less likely to suffer a 51 percent attack due to its growing hash power.
But, this becomes expensive at a certain point. Thus, considering the size of established blockchains like ETH and Bitcoin. This scenario is impossible.
- Quantum Computing
Another important aspect is why it’s even harder to hack a blockchain. This states: in case the block being re-hashed is at the middle of the chain. The attacker re-hash previous blocks. This is to align their historical stamp with the new block.
However, for Bitcoin, this becomes possible with the next generation of quantum computing. This currently doesn’t exist.
- PoS Based Hacks
In PoS based systems, stakes signifies the strength of the network. , those users who are locking their native blockchain assets. This helps to take part in transaction processing and finding new blocks. However, in such systems, an attack occurs when a hacker controls a majority of the stake. But, this is possible when the hacker accumulates over 51 percent of all coins in circulation.
The Future of Blockchain Hacks
So far, nobody has hacked a blockchain. Instead, it’s usually a group of malicious actors that are trying to breach a blockchain’s security. But, blockchain platforms are becoming faster through an increase of nodes. Meanwhile, the possibility of hacking a decentralized network is moving towards zero.
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To sum up, if you ever hear someone saying that a blockchain was hacked. So, now you’ve the tools to correct them and send them on their way.