Interesting Things to Know about Blockchain Security

When you think of Blockchain security, you should think of a comprehensive risk assessment procedure usually conducted to ensure the security of a blockchain network. This is usually done by implementing cybersecurity frameworks, methodologies, security testing, and secure coding practices to make sure a blockchain solution is secured against breaches, online frauds, and other cyberattacks.

Interesting Things to Know about Blockchain Security

In basic blockchain security, the technology produces a kind of data structure that offers high security to the blockchain. It is usually based on decentralization, cryptography, and consensus – all of which work together to ensure safe transactions on the blockchain. Most blockchains contain data that are structured into blocks or lumps. Each of these blocks contains one transaction or sometimes, a bundle of transactions.

These blocks are interconnected to each other in a cryptographic chain. This hence makes it super difficult for anyone to tamper with the integrity of such a blockchain. When new blocks are added to the blockchain, they are automatically connected to the existing blocks in such a way that it is almost impossible for anyone to tamper with their integrity.

Every transaction with each block is validated by a consensus mechanism, which makes sure that every transaction that happens on the blockchain is true and secure. Blockchain technology is completely decentralized. That means no one member can change any transaction record. It has to pass through other members and be approved. And that’s one important reason blockchain networks are highly secured.

There are majorly three types of blockchains

Public Blockchains

In this kind of blockchain, all the transactions happening on it are very transparent. That way, anybody can analyze the subtleties of transactions happening on it. Examples of public blockchain include Bitcoin and Ethereum.

Private Blockchains

In this kind of blockchain, all the transactions happening on it are private and only the members of the system can access them. These are the members that have been allowed to join the private network. Examples of this blockchain can be seen in R3 Corda and Hyperledger.

Consortium blockchains

This blockchain has some similarities with private blockchains. The only difference between them is that in consortium blockchains, a group governs the network rather than just a single entity.

When looking to build a secure blockchain solution, there are some general practices that need to be borne in mind. Some of them include:

  • Define and enforce endorsement agreements based on business contracts.
  • Enable identity and access management (IAM) controls to handle data access in the blockchain.
  • Execute suitable tokens like OAUTH, OIDC, and SAML2 to perform user authentication, verification, and authorization.
  • Securely store identity keys.
  • Use privileged access management (PAM) solution to secure blockchain ledger entries after suitable business logic.
  • Safeguard API-based transactions with API security best practices.
  • Use privacy-preserving technologies for sensitive information.
  • Use standard TLS for internal and external communications.
  • Implement multi-factor authentication.
  • Keep strong cryptographic key management.
  • Patch security loopholes to protect blockchain-based applications from vulnerabilities and data breaches.
  • Get an industry-recognized security certification for your Blockchain solution.
  • Enforce compliance and other security controls for the solution.

Also, there are Blockchain Security Testing tools you can use to ensure blockchain security and they include:

  • MythX – It is a smart contract security analysis API. The API supports such blockhains as Quorum, Ethereum, Tron, Vechain, Roostock, and other that are compatible with EVM.
  • Echidna – It is a Haskell program designed for fuzzing/property-based testing of Ethereum smart contracts.
  • Manticore – It is a symbolic execution tool that is usually used to analyze binaries and smart contracts.
  • Oyente – A static analysis tool for smart contract security.
  • Securify 2.0 – Securify 2.0 is a security scanner for Ethereum smart contracts.
  • SmartCheck – Static smart contract security analyzer.
  • Octopus – It is a security analysis framework for the WebAssembly module and blockchain smart contract.
  • Surya – Surya is a utility tool for smart contract systems.
  • Solgraph – Generates a DOT graph that visualizes the function control flow of a Solidity contract and highlights potential security vulnerabilities.
  • Solidity security blog – Contains a comprehensive list of crypto-related hacks, bugs, vulnerabilities, and preventive measures.