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What Does bug in blockchain Mean for Bitcoin Investors?
Because of its innovative encryption technology and decentralized method of data storage, many have hailed blockchain as the protection needed to legitimize cryptocurrencies. Proponents of blockchain present it as a secure alternative to transferring money and information without having to go through third parties like banks. Like with all new technologies however, blockchain is not without its challenges. The rise of cryptocurrencies such as Ethereum have also given way to scammers promoting counterfeit versions of them on social media. Such a sobering reality has left many investors wondering what all this could mean for them.
In 2019 alone, there have been reports of multiple bugs found in blockchain and cryptocurrency platforms by white hat hackers. A report by Yahoo! News states that bugs were found in e-sports gambling, crypto exchanges, and peer to peer (P2P) networking platforms among others. Between February and March, several of these companies received a total of 43 vulnerability reports.
Coin Telegraph claims that major Bitcoin wallet outlet Trezor, was one of those found to have multiple bugs. According to the report “the Trezor device could purportedly be imitated by backdooring the device with malware and then re-sealing it in its box by faking a tamper-proof sticker, which is reportedly easy to remove.” Representatives from the company have responded by saying none of the weaknesses found were critical for accessing hardware wallets. It is these types of bugs that companies like Trezor, hire hackers to find within their platforms.
According to Business News Daily, an increasingly popular counter measure involves the use of the above mentioned “white hat hackers” or hackers employed by an organization to help expose security risks. These hackers use penetration testing techniques to expose flaws for better risk assessments and reduction. Many of these hackers are former criminal hackers, but several are also certified and trained professionals looking to work in a fast moving industry. Maryville University outlines how an information security analyst was listed as the 8th top job in the world by the U.S. News & World Report in 2015. This goes to show how prominent cyber security is becoming in the world. And the numbers will only get larger as blockchain becomes more widely used across other industries.
There are also other factors to why blockchain could be vulnerable to hackers. As noted by Monika Proffitt for Medium, it may all come down to simple human error. The downside of having a decentralized storage system is that individuals must act as their own bank and are responsible for the safety and security of their funds. This independence carries with it risks of exposure to different types of hacking methods.
exclusively written for fuk.io
By Cathy Lowry