Security Strategies For The Blockchain That Companies Need To Adopt

Enterprise Security Magazine | Thursday, June 02, 2022

All developing technologies come with security vulnerabilities in a world of decentralized record-keeping. To reduce the risk, businesses must adopt best practices.

Fremont, CA: Everyone must take higher responsibility for their online security in a world of distributed record-keeping and decentralized applications. Organizations must neutralize hazards that extend far beyond their walls and intellectual assets. This begins with a security attitude in both cases. Security leaders must balance a technology-agnostic technique with security strategy and complete knowledge of the threats that new tools or architectures allow.

Businesses should execute the following blockchain-specific mitigations:

Blockchain specific governance

Determine how new users or organizations join or leave the network and techniques for removing bad actors, managing faults, protecting data, and resolving inter-party conflicts. Frameworks for guiding design decisions and incorporating compliance regimes should also be included.

On-chain vs. off-chain data security

Despite data, the reduction is a general best practice for identifying what data is stored on-chain, sidechains, hash data, data in transit, cloud storage, and so on; all require additional security precautions.

Smart contracts

Smart contracts, also known as chain code, are blocks of code in a blockchain that initiate transactions based on predetermined criteria. They offer a new point of vulnerability since their integrity determines the operation's reliability and the findings' credibility.

Blockchain application security

On the blockchain, applications are how data and many use cases are accessed. They're a weak spot that should be protected with strong user authentication and endpoint security. This may involve various levels of access that could alter over time in permissioned blockchains, where access and use are just open to vetted or known users.

Trusted third party and auditors

Just trustworthy parties should undertake security assessments, penetration tests, smart contracts, source code, and blockchain infrastructure audits. Use these to protect against emerging dangers such as cryptographic algorithm compromises and prepare for new attack types and automated agents.