10 Blockchain and New Age Security Attacks You Should Know
The new-age technology called the blockchain has taken the internet and financial spheres by storm ever since the introduction of cryptocurrencies and NFT. Blockchain development is generally explained as a system of recorded information constructed in a way that makes it secure, trustworthy, and most difficult to hack or perform modifications.
Blockchain technology authenticates the data and transactions and provides security by using cryptography methods. However, like every other technology in history, blockchain comes with its own kind of vulnerabilities and is actually prone to cyberattacks and fraud. In this article, we have come up with 10 of the blockchain and new-age security attacks you should be aware of.
01. Eclipse attack:
Eclipse attack is a type of peer-to-peer network-based attack in which a node connected to a network of nodes is made to split from the network’s legitimate connection and manipulated. It is a type of blockchain security threat in which a node in a system of P2P networks is attacked by a manipulator who launches their own fabricated ledger only. It is visible to the node while disrupting the view of the distributed ledger of the network.
02. Sybil attack:
The Sybil attack differs from the eclipse attack of P2P networks in the fact that the Sybil attack targets the entire network rather than a single node. It poses a threat to blockchain security by swarming the network with numerous malicious nodes with pseudonymous identities to influence the data transfer in the network. It can also create a fork in the ledger, enabling the attacker to make various other attacks per wish.
03. Mining malware:
This attack-type employs classic methods used by hackers like embedded code in a website or email phishing attack, through which the mining malware is transferred to the victim’s computer. This type of blockchain and new age security attack uses the victim system’s computing power to perform calculations to conform to previous cryptocurrency transactions and uses the information to generate and mine the cryptocurrencies for the hackers.
04. Selfish mining attack:
The longest chain in the blockchain is considered the authentic, latest version of the ledger. Using the selfish miner algorithm, an attacker can create a chain in stealth mode. And after creating a lead over the existing chain, they can publish their private fork, which will be declared as the new true chain being the longest. This enables the attacker to do double-spending by reversing the transaction he made before publishing, compromising security in the process.
05. 51% attack:
The 51% attack is a unique type of consensus forking attack where a miner or a group of miners are in charge of 51% of the mining power in the blockchain network. This type of situation arises in smaller networks and is very rare in larger networks. The miner group, after gaining control over the majority of the mining power, gains the ability to reverse the transaction or to stop a current transaction from being carried out.
06. Timejack attack:
Nodes in a P2P network maintain a median time by which the internal timing of a node is determined. This time can be manipulated by an attacker by placing a group of malicious nodes in the network. This blockchain security attack is carried out after implementing an eclipse attack on a target node, making it split from the network as a result of a differentiated timestamp. Then the attacker implements double-spending in the network.
07. Finney attack:
This is a type of attack in the blockchain where an attacker acts as a miner, mines a block, and performs a transaction in stealth mode. Then, he transacts the currency to a merchant who accepts the transaction, which is not confirmed by the network. After this, the miner publishes the block and confirms the transaction which was made earlier. Through this, double-spending takes place with the miner.
08. Race attack:
This attack differs from the Finney attack by the fact that it does not require a block to be mined in advance. The attacker submits an unconfirmed transaction to the merchant and simultaneously performs another transaction with a higher priority which he confirms to the network. The merchant mistakes the transaction to be theirs and completes the formalities.
09. The DAO attack:
The DAO attack is a controversial attack that was launched on the Ethereum foundation. It is a type of attack that occurs by utilizing smart contract development on a blockchain. The attacker contributes a small amount of funds and requests the withdrawal of it with the help of a recursive function, owing to the absence of checking of the current transaction’s state.
10. Parity multisig wallet attack:
This is a type of attack where the parity client wallet is hacked by the attacker, and the currencies are withheld. Wallet contracts are made using a centralized library contract, which is used for automated payments. The attacker finds a vulnerability, adds his account as an owner, and freezes the currencies.
Blockchain is immutable and expensive, and hence it is necessary to formulate concepts, security audits, and perform testing before the deployment of the cryptocurrency and properties. It is a permissionless network where anyone can participate, and their identities are anonymous. Blockchain security methods should be strengthened considering these vulnerabilities.