Live-Bit Presents Blockchain vulnerabilities and crypto robberies
Live-Bit Presents Blockchain vulnerabilities and crypto robberies. Blockchain is the invention that makes cryptocurrencies work and is the database containing time-stamped records of transactions that have never occurred on the network. However, despite the security that cryptographic techniques offer like confidentiality, transparency, integrity, and consistency to name a few, blockchain is still vulnerable to attacks, some of which are intrinsic to the programming language. and others caused by external factors. The purpose of this article is to make the reader aware that no wallet is immune to a cunningly crafted stream of bits from malicious yet highly intelligent actors.
The Ethereum blockchain
One of the biggest and most used blockchain platforms is Ethereum. It enables the creation of digital tokens and sensitive decentralized applications (DApps) that use smart contracts to deliver specific services. A digital token represents a specific good or utility that can be exchanged for other similar assets, thus powering DApps allowing users to take advantage of decentralized, blockchain-powered services that cryptographically secure data and information on the network. Ethereum is based on a scripting language called Solidity.
Attack Vectors
While allegedly unhackable, the Ethereum platform has vulnerabilities that can be exploited by attackers to maliciously control the blockchain, targeting the very core of a cryptocurrency. In addition, it is important to consider that digital currency today is encoded by developers who may have left bugs or used third-party software that may be vulnerable to attack.
Hackers challenged the Solidity language by performing a type of attack called a “re-entry attack,” which exploits a call to an external function capable of remotely executing code. Such an attack introduces bugs into smart contracts, leading to financial losses for some and profits for others. A re-entry attack allowed attackers to grab Ethereum in exchange for DAO tokens.
Prevention of cryptographic hacks
At this point, it’s clear that the personal and sensitive data of customers, as well as the anonymity that users rely on, are at stake. The same information stolen from crypto exchanges could have been used to effect other types of attacks in the wild and compromising non-blockchain-based systems posing a huge threat to people’s privacy.
While some people are affected by this misuse of the blockchain to transform transactions and steal crypto wallets, developers and researchers are offering constant upgrades to protect people’s assets, studying new crypto models, and inventing new ones. protocols to be implemented in their code and improve security.
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