How secure is blockchain?

How secure is blockchain?

By Altermail | Altermail | 4 Aug 2021


Blockchain security

We live in a digital age – a time when computer technology gathers unlimited amounts of information.

This data contains all our online activity, which sometimes we don't want someone to expose. Still, all our data is being collected, processed, stored, and used. In traditional databases, everyone holds our information in one place. However, blockchain stores the same data in multiple locations, yet is it safe?

Worth considering that the data we create, possess, and share are critical in today's world. Every day, storing, processing, and analyzing billions of information entries marks a significant task. New technologies and approaches grow to make it easy as possible. 

The centralized data makes it possible for hackers to hack data and are vulnerable to cyber threats and data leaks. Thus, we need decentralized cloud data. Decentralized cloud data is difficult to attack and ensures more security. It reduces the cost also.

The technology is known as the blockchain.

Where many places act as a distributed ledger, many of these data places communicate to ensure that all transactions are true and correct - secure. Blockchain security needs a particular solution for deletion or ownership. People think that they can change or delete everything online forever. Wrong. There will be records of everything, where blockchain comes in hand – there are two methods of storing data with On-chain and Off-chain. As the name suggests, all the data is stored inside each block on the chain in an on-chain way. Thus, if an attack happens, data can be restored and used. The On-chain is costly since the size of the chain "block" would be huge.

Off-chain storage doesn't store the entire data but the metadata alone. It has a disadvantage, though. If any system breach happens, the data might not get restored. Still, they are cost-efficient, which makes them the perfect option. Of course, scaling current blockchains like Ethereum to run on "proof of stake" instead of "proof of work" rapidly reduces the power usage and will impact the costs in the future. 

Data ownership

in blockchain in all the storage places except personal data, stored in a different database; because of that company can still protect the personal info and share the remaining blockchain if needed. It is essential to mention that there are public and private blockchains. Public blockchains allow staying decentralized and easy to access, which uses internet-connected computers to validate transactions and achieve consensus, for example, the bitcoin network. 

There are several private blockchains like

Monero (XMR), Secret Network (sSCRT & SCRT), Pirate Chain (ARRR), and a few more. For instance, Secret Network Smart contracts are self-executing pieces of code that are managed on a blockchain. Most blockchains that support smart contracts, such as Ethereum (ETH), are public by default, which means exposing all the data used in their smart contracts to the public. Secret Network improves upon traditional smart contracts by supporting encrypted inputs, encrypted outputs, and encrypted state for smart contracts – data privacy for sensitive information stored on the blockchain. Privacy is essential to the security and adoption of Web3, from DeFi to NFTs and beyond. (Reference: scrt.network).

 

Although, there has been a lot of buzz about how hackers are attacking and exploiting cryptocurrency users.

The most common ways of acting as a cybercriminal:

(Reference about the four methods: digitalshadows.com)

  • Reverse proxy phishing
  • Cryptojacking
  • Dusting
  • Clipping

More information of these methods you can find on Google of course. 

Blockchain remains the most secure option for protecting data, working with data, creating it, and sharing it.

Data is being stored and protected in plenty of places, and there is a bigger chance to secure information that individual wants to stay confidential. The one thing that indeed takes the upper hand in security is that decentralization cuts all the middlemen profiting from data analysis, farming, and exploiting them for many reasons. 

 

 

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Altermail
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Altermail, a private and decentralized messaging dApp built on Secret Network


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