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Enterprise Security Magazine | Tuesday, March 09, 2021
The usage of new technologies like blockchain is increasing, but it also gives rise to fraudulent activities.
FREMONT, CA: The growing list of blockchain technology suppliers who have been targets of fraudulent hacks and assaults is beginning to make people wonder whether blockchain is as secure as it is known to be. Even though industry experts continue to convince the world that DLT technology is aeons beyond current data protection strategies. Many still suggest that businesses must take extra precautions when protecting their data, particularly on the cloud.
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As blockchain and DLT-based technology are rising in more political, manufacturing, and commercial industries, there is an increasing need for discussion. Here are few points that also help increase awareness of the risks involved with blockchain and Distributed Ledger Technology.
Blockchain Security Risks
1. Endpoint Vulnerabilities
Currently, one of the most common points of weakness for DLT technology is outside of the blockchain. Endpoint vulnerabilities are essential because of where they occur, like the moment and place humans and blockchains intersect. An endpoint may be anywhere a person uses to access confidential information, such as a bank employee's device.
Endpoints is becoming vulnerable in the process of accessing the blockchain in order to obtain the data. Endpoints offer cybercriminals the ability to bring bad code in or out. When a system gets compromised, the hackers will piggyback off the credentials of high-access users in order to do the maximum damage.
2. Vendors
As DLT adoption continues to expand, many are looking at new solutions that can provide security and safety, which DLT technology guarantees. But as several new products are continuously evolving, it also develops another security issue, which is of enormous importance: vendor risks. Companies that wish to implement third-party blockchain software and platforms are also unaware of the security threats related to faulty and exposed suppliers.
For the vendor solutions, it is not unusual to have a minimal emphasis on security initiatives with inadequate security controls on their systems, unreliable code, and even personal vulnerabilities that can readily expose the customers' blockchain credentials to unauthorized users. Such threats are significant while discussing products that require the use of smart contracts.
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