Latest Report From MIT Technology Review Shows That Blockchain Technology’s Security Cannot Stop All Hacks
One of the biggest features of blockchain technology that its proponents like to discuss is its security. The fact that transactions cannot be altered after they are posted is a major benefit because it speaks to the censorship resistance that the blockchain boasts. However, a recent report from MIT Technology Review is leaving some people concerned after stating that blockchains can still be the subject of hacking.
The article focused on the nature of blockchain technology, which relies on unpredictable human behavior. For that reason, there has been plenty of security breaches lately in cryptocurrency and even smart contract platforms. Many incidents have been found on Coinbase that expose vulnerabilities, including a recent issue with double spending.
In the review, the researchers add to the multiple conditions on a blockchain that make it both vulnerable and essentially a target, like the random bugs on the system and simple human error.
The article stated,
“In short, while blockchain technology has been long touted for its security, under certain conditions it can be quite vulnerable. Sometimes shoddy execution can be blamed, or unintentional software bugs. Other times it’s more of a gray area — the complicated result of interactions between the code, the economics of the blockchain and human greed.”
To make matters worse, platforms essentially create the problem of “white hat hackers” with the use of bounties. These bounties urge individuals to seek out any blockchain flaws and vulnerabilities that crypto and blockchain companies should be aware of to protect themselves. In reality, they are basically paying these hackers to hack them and report back. In 2018 alone, white hat hackers brought in $878,000 by reporting these bugs, according to TheNextWeb.
Coinbase was one of those bounty-offering platforms, recently giving a $30,000 reward for the report of a critical bug. At this point, this is the largest bounty to ever be distributed by Coinbase through HackerOne.
Right now, MIT Technology Review believes that blockchain technology will become commonplace this year. Hopefully, the security vulnerabilities in the ledger can be resolved soon, considering how the Review found blockchain to be a disappointment last year.
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