Cryptocurrency Hacks, How does the Security of Blockchain Technology stand?

Cryptocurrency Hacks, How does the Security of Blockchain Technology stand?

As the blockchain technology is growing fast, the security of blockchain technology issue is now playing a significant role. As we know that blockchain is based on distributed ledger technology in which each "transaction" or "block" is time-stamped and linked to the previous one. agreement between users in the system can only update it. The previous data can never be edited, erased and changed.

Blockchain it the following cryptography to make a chain of the block in which newly block is added with each block before it, as they are in the chain so no single block can take control of the data in the blockchain. And we know that Blockchain is decentralized and a distributed ledger which spread across peer-to-peer networks without having a central location which makes difficulty for hacker and it can't be managed from a single computer. 

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Blockchain technology is decentralized so it can solve many problems by removing trust in the case of a digital token. As a decentralized technology, so users remain anonymous so it allows security threats. 

If we were talking about weaknesses, As this is technology, so it contains its weak points.

In 2010, a hacker manipulated a bug in Bitcoin’s software and generated 92 billion bitcoin.

After that on January 26, 2018, A Japanese cryptocurrency exchange Coincheck hacks and more than $500 million worth of digital coins had been stolen.

After that, a significant question raised on the security of blockchain.

The Coincheck reported the stolen digital coins are stored in the "hot wallet,"  and that is connected to the internet. The "Cold" storage—hardware is more significantly useful for storing token.

So the next question is, how you can keep your assets safe?

  • Use a multisignature address such as multifactor authentication process.
  • Significant use of cold or hardware wallet.
  • Reducing human error.

By these extra measurements, you can provide additional security to your blockchain project.

#Blockchain Technology #Hacks #Cryptocurrency Hacks #Security of Blockchain #Security of blockchain technology #Distributed ledger technology

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