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Is blockchain technology safe for our life today?

Maya Mandz | Mar. 27, 2019
Is blockchain technology safe for our life today?

March 27, 2019, | AtoZ Markets - The blockchain technology in less than two years has gained widespread popularity despite anti-controversial attitude to this technology. One of the main questions the experts keep asking themselves about this innovation - “is blockchain technology safe”.

The blockchain technology invades major industries

The blockchain, originally designed to support cryptocurrency, has risen from a widely misunderstood technology to the top in the market of innovations, both among startups and major businesses. According to the Deloitte survey conducted last year, 95% of large companies invested in the blockchain.

The main interest was shown not only by the players of the financial or technological industry. Progressive representatives of healthcare, logistics, cybersecurity, and even agriculture have also begun an active study of the blockchain and options for its use.

In addition, recent market trends showed that 2019 may be the year of the corporate blockchain. Such worldwide technology adaptation gives a hint, that it might be the truth and the blockchain technology is safe.

Is blockchain technology really that safe

Nevertheless, the blockchain technology continues to raise doubts among many users, as well as among representatives of large corporations, as it happened earlier with Bitcoin.

Despite the fact that certain large networks of the blockchain, including Ethereum and Bitcoin, were called “immutable”, “irreversible” and “extremely safe”, these startups did not avoid hacker attacks. So is blockchain really as safe as some people think? We collected the experts’ opinions on this topic.

The blockchain technology on the crypto jackers’ radar

According to the latest reports in the first 9 months of 2018, hackers stole more than 927 million dollars from cryptocurrency exchanges and other platforms serving the cryptocurrency community. It is interesting that all hackers or crypto jackers to some extent used an open source blockchain.

The blockchain-supported ICO was also heavily criticized last year, as the media reports. One of the ICO startups experienced a serious security breach during their campaign last year when hackers destroyed the crypto wallets of several users. The equivalent of $ 800,000 in the tokens of the platform went missing, and the founders were actively involved in damage control and reparation.

Experts opinion on the blockchain security

Despite all the negativity leading ICO’s and the crypto industry, the blockchain enthusiasts remain hopeful about the future of this technology.

“Although hacking and fraud in the ICO are still common, businesses, security specialists and lawmakers are now actively working to eliminate these cases,” said Philip Bednarek the CEO of GoldFinX, the startup that is raising funds through an Initial Coin Offering (ICO).

“Everyone in the blockchain ecosystem is interested in ensuring maximum security, and as a result, new creative solutions emerge in all aspects of the business,” Bednarek added.

Anthony Hamsay, the Resistance founder, stressed in one of his latest interviews: “To reduce risks, blockchain companies must make security and privacy a top priority. In addition, investors and blockchain users should take the time to understand which technological stack a blockchain company is using and how safe it is. "

The latest research reveals security vulnerability in 13 companies

Cybersecurity researchers have recently analyzed various cryptocurrency and blockchain technology companies and published a report called Hard Fork. The goal was to identify security vulnerabilities in the companies. The research group later sent 43 messages regarding security issues to thirteen companies participating in the study. It should be noted that the identified deficiencies in the systems of the companies were not serious violations, and this was highlighted in the report. However, there are valid security concerns that these companies must address.

Is private blockchain more secure?

Most of the blockchain projects that are currently being implemented in enterprises are the so-called “private blockchains”. Unlike publicly available counterparts, such block chains can only be accessed by a specific group of users. Such networks are almost impossible to crack. But with the advent of the private blockchain, another question comes to the fore: is it worth sacrificing decentralization for more privacy and security?

For this reason, many companies are looking for ways to take the best of both worlds - the decentralization of public networks and the additional security of private networks. Such companies as IBM, Corda, Ripple offer enterprises access to a centralized system with a certain degree of cryptographic verifiability and security.

The blockchain projects trying to adapt to their clients’ needs

Other companies are trying to adapt public chains to user needs for security. For example, in the Ethereum blockchain, there are already several mechanisms that can be used to ensure the privacy of network participants — ring signatures, hidden addresses, and the storage of personal data of a public blockchain.

In general, blockchain technology is evolving to offer new solutions for technological granular confidentiality levels for both public and private networks. Companies are actively exploring and fixing known vulnerabilities and introducing new mechanisms that protect all parties and the absence of intruders who can hack and exploit vulnerabilities in the ledger.

What do you think about the blockchain security? Let us know what you think in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.