The Blockchain is often targeted by cybercriminals stealing users’ data and crypto assets worth millions of dollars. Though blockchain is secure, vulnerabilities can lead to blockchain hacks. These vulnerabilities can be in any form, such as programming errors, errors in design implementations, poor protection, etc.
Blockchain Code Vulnerabilities
Many blockchain hacks occurred due to loopholes within a blockchain protocol or its implementation. Hackers can exploit such code vulnerabilities to break into the system.
Some blockchain code vulnerabilities are as follows:
Some loopholes are created when a blockchain developer fails to determine the impact of the features built into the technology. The Verge cryptocurrency attack is an example of this type of vulnerability, in which a hacker exploited design loopholes to perform a 51% attack with merely 10% of the blockchain hash power. This issue was not related to the code but to the protocol’s design.
Implementation errors can arise when programming errors exist. Bitcoin protocol is considered secure because of its design, but it has been hacked due to implementation errors in the code.
Blockchain Design and Implementation Errors at Different Levels
The blockchain is complex, so vulnerabilities exist at different levels.
- Blockchain Client: The blockchain is implemented like software running on each node of the network. If this software has any vulnerability, hackers can get an entry to attack the blockchain.
- Smart Contract: Smart contracts are the programs that run at the backbone of a blockchain. There are several examples of DeFi hacks due to smart contract vulnerabilities.
- External Systems: Crypto exchanges have external systems linked to the blockchain. Vulnerabilities in such systems can lead to cyberattacks affecting the blockchain system.
Secure Blockchain Against Hacks
Blockchain hacks are increasing day by day. However, to protect a blockchain from hacks, a security audit, and thorough network testing can help identify and rectify loopholes.
Contact our blockchain and smart contracts security experts at [email protected] to learn about how security testing and implementation.