Cybersecurity Risks In the Blockchain Industry
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Risks of Cybersecurity in Blockchain

Several businesses have sought to profit from the recent growth in the popularity of cryptocurrencies and blockchain technology. They’ve even created their coin. Despite the fast-paced nature of their operations, there are many possible cyber hazards that these businesses are unaware of.

All About the Blockchain Industry

The name blockchain is very popular in cryptocurrencies and usually refers to the technology used to keep track of all Bitcoin transactions and other digital currencies such as Ethereum and Litecoin. In essence, it’s an online ledger that keeps a record of all trades. 

But, this ledger is decentralized and distributed across thousands and potentially millions of computers worldwide. Those who are tracking the system are called miners, and in the same way, gold miners extract data from deep within the Earth. 

Due to the nature of the technology and its potential for misuse, the influence of blockchain on data protection regulations known as “GDPR” has been discussed a lot lately. The concept of blockchain has always been intriguing to those who research it. 

Still, it is only recently that it has begun to reach critical mass with businesses who wish to utilize this revolutionary technology. With this said, two things have become immediately apparent since the introduction of blockchain technology. First, it has become clear that the blockchain is ideal for storing data, and second, many GDPR-related issues need to be assessed using blockchain technology. 

What Are the Cybersecurity Risks in the Blockchain Industry?

The rising popularity of cryptocurrencies and blockchain technologies can cause some companies to take a significant leap into an area they know little to nothing about. However, there is a chance that they might be unaware of the risks that lie ahead. Plenty of cyber risks lie ahead for them, divided into two categories: information safety risks and asset safety risks. 

Phishing Attacks

In the blockchain industry, phishing attacks are nothing new. Although these are not particularly new, there is no doubt that they have become increasingly more dangerous and more frequent. 

People are increasingly prepared to exchange their personal information for cryptocurrencies, possibly making them easy targets for cybercriminals. Furthermore, this attack might seem like a legitimate communication from your company’s website or email address. 

Mining Farms

Another form of cyber risk in the blockchain industry is using a distributed ledger that is being mined by a large number of computers. This creates an environment where hackers can discover valuable information and steal it. The danger is when multiple companies are not aware of this potential cyber risk and do not have adequate security measures. 

Smart Contract Hacks

A smart contract is a contract wherein all the conditions within the contract are embedded in the code itself. This makes it so that the contract cannot be changed in the future. 

However, there is a real danger that hackers can take advantage of a vulnerability in these contracts and alter the transaction in their favor. Many blockchain experts do not recommend using this technology for transferring large sums of money due to the risk. 

Public & Private Key Storage

To send and receive cryptocurrency, you must provide personal information, including your name, date of birth, and other sensitive information. Hackers can easily access this personal information. It is essential to keep this information in a safe place when it is being sent and received online. If you employ public or private key data storage, this is simple.

Cryptocurrency Scams and Frauds

The blockchain industry is full of cryptocurrency scams and frauds. These types of cyber risks are usually rooted in the fact that the technology itself is still very new and does not have an excellent reputation for being secure. 

Many different types of scams exist in the blockchain industry, but all these scams involve transferring cryptocurrency. With this in mind, there is no question that hackers are attempting to exploit this business, and if they are successful in identifying holes, they will eventually succeed.

Conclusion

It is a fact that blockchain can be a handy tool for the right company or individual. However, there are many cyber risks in the industry, and they can quickly put the client or the company at risk. So, if you are going to invest in this technology, it is essential to know the security tips about cryptocurrency and your potential cyber threats. This will enable you to take steps to mitigate them as much as possible and provide you with long-term data security. To learn more about cybersecurity risks in the blockchain industry, check out our blog now.

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