Blockchain Security — Where Do We Stand?

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In just two years blockchain has gone from a hardly-known and widely misunderstood technology behind cryptocurrencies, to the very top of the hype cycle both among startups and enterprises. According to the Deloitte’s survey made last year, a whopping 95% of businesses were looking to invest in the blockchain.

It is not just the financial or tech industry players who showed significant interest. Blockchain pilot project and use cases are being actively explored by innovative players in the healthcare, logistics, cybersecurity, and many other industries. The latest market trends show that 2019 may become the year of enterprise blockchain.

However, blockchain technology still has not fully recuperated from a rough start. Despite being branded as an “immutable,” “irreversible,” and “highly secure,” several notable hacks did take place on several major blockchain networks including the leading Ethereum and Bitcoin.

Coindesk stated that within the first nine months of 2018, over $927 million were stolen by hackers from cryptocurrency exchanges and other platforms made for the crypto community — all of them using public blockchains to some extent.

Blockchain, as a technology and cryptocurrencies that are powered by it symbolize tremendous opportunities as much as they bring risks. To mitigate the risks, blockchain companies need to make security and privacy the highest priority. Also, investors and blockchain users should take the time to learn what tech stack a blockchain company is using and how secure it is.

The researchers behind the recent Hard Fork report did a massive investigation and “poked” several companies dealing with cryptocurrency and blockchain tech for security vulnerabilities. A total of 43 bug reports were filed for thirteen participating companies.

It is worth remarking though that the identified defects in the companies systems were not some significant breaches as the report indicates. Still, they are legitimate security concerns those businesses should address.

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