How Blockchain Security Risks Can Be Minimized
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Blockchains has been integrated into the cryptocurrency space. This integration comes with its security challenges as it is prone to attacks from every angle. It is good to be reminded that, the purpose of integrating blockchains into cryptocurrency is to enable the buyers and sellers of cryptocurrencies to process, record and secure their financial transactions in a transparent system. But this purpose is not without any possible attacks or threats which try to penetrate into the blockchain to steal the assets. This is why it is very important to to deploy every needed resources to prevent or minimize the risks in blockchain technology.
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A blockchain could be referred to as a decentralized or distributable ledger in a database that facilitates transactions between various networks without the interference of a third part. Blockchain uses immutable formats to store transactions.
The blockchain technology could be deployed in the following industries:
The retail outlets
The entertainment industry
Energy
Finance
The Media industry
Some key attributes of the blockchain technology includes:
The use of public key encryption
The use of a distributable ledger
The use of smart contracts
Below are some of the risks associated with blockchain technology:
The risks of phishing
The 51% risks
The risks of rug- pulling
The transaction risks
The cryptographic risks
Blockchain Security risks could be minimized in the following ways:
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Launching security protocols for endpoints
Using advanced cryptography methods
Auditing smart contracts
- Implement delegated proof of stake
- Use of exchange security
- Proof of state mechanism
These are few out of the many ways to minimize blockchain Security risks.
Deploying resources to securing crypto assets topmost should be a topmost agenda to blockchain developers. It should never be allowed to be compromised in any form by any means or entity.
Cc:
@khursheedanwar