How Blockchain Can Address Security Flaws and Hacks Infinity Blockchain Labs

How Blockchain Can Address Security Flaws and Hacks


March 23, 2018

Every year, a large number of healthcare companies are exploited by hackers and security holes. The huge databases and PHI of stolen patients are often sold on black sites after. With complex attacks such as malicious code, phishing attacks and growing security holes, administrators are focusing on emerging technologies such as Blockchain to protect guest information.
How Blockchain Can Address Security Flaws and Hacks

The impact of hacker’s attacks and security flaws

The explosion of the Internet and technology has pushed users, even businesses, to the threat of information insecurity. Hacker attacks cost hundreds of billions of dollars each year. Statistics show that 15% of social network accounts have been compromised, 10% of users have consequences when clicking on the link or dirty victims of the attack. About 75% of respondents said that hackers would increasingly focus on exploiting security vulnerabilities on websites such as Facebook. (1)
In 2017, there are the rise of virtual currency and causing a fever in the world. This has also boosted the hacker’s ability to ramp up cyberattacks of hacker attacks to turn users’ computers into virtual money-digging tools. The two most common types of hackers use are exploiting website vulnerabilities and exploiting social networks to spread the virus. In 2017, it also saw the explosion of ransomware exploiting the operating system vulnerabilities. disperse with speed. Typically WannaCry, which infects hundreds of computers in more than 90 countries in just a few hours. In Vietnam, more than 1,900 PCs contain WannaCry and more than 52% of computers have vulnerabilities that can be attacked by malicious code. (2)
How Blockchain Can Address Security Flaws and Hacks
Then there was the emergence of Petya extorting a series of banks, airports, ATMs and many large businesses in Europe. Similarly, Bad Rabbit malicious code has spread in the system of at least 200 organizations around the world. The huge ransom earned by hackers is the reason for the explosion of this malicious code.
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What can Blockchain development change in the security?

As one of the key concepts associated with Bitcoin and Trade Coin, Blockchain has been identified as a top security technology that helps prevent data theft or change, As a result, when transaction data is recorded, maximum security will be ensured.
How Blockchain Can Address Security Flaws and Hacks
Once the data has been updated, it can not be altered or tampered with, and only updates and updates can take place simultaneously on all computers in the network.If the original transaction data is changed after encryption, then only one electronic signature is required to prompt the network for the content to be corrected. With the fragmented nature of block-based data, it is difficult for hackers to access all versions at the same time, because encryption is one-sided.
Data such as “tangle” can not be decoded back to original data. As a result, Blockchain ensures absolute safety and privacy. Experts say the collapse of the Blockchain technology is extremely difficult. At present, Blockchain technology is regarded as the absolute security technology with fast processing speed. Therefore, Blockchain is a trend applied by many banks research and development. (3)
How Blockchain Can Address Security Flaws and Hacks

What companies and organizations are doing in order develop blockchain in security?

Blockchain technology is being introduced by the financial industry with a sophisticated, high-security algorithm that allows for data interventions to be disabled.Blockchain greatly reduces the likelihood of errors when comparing complex, differential information from a variety of sources. Some of the applications of Blockchain technology in the accounting-audit industry are known as audit evidence that can be tracked, automated audits, transaction authentication, asset ownership tracking, smart contract, etc.
How Blockchain Can Address Security Flaws and Hacks
For example with a smart contract, as in the case of an automatic vending machine, is that users simply drop Bitcoin into the automatic water dispenser (Blockchain platform). The requested item is shipped directly. to the user’s account. David Lyford-Smith also said that Blockchain technology is being applied in land use registrations (projects in Sweden, Dubai …); Companies such as Maersk, Guartime, Microsoft have partnered to track shipping insurance on Blockchain.
Currently, the ONC (Office of the National Coordinator for Health Information Technology) is actively considering proposals submitted to the US government-sponsored competition. Some suggestions include developing peer networks to analyze health data with higher levels of confidentiality, improve interoperability for information exchange, patient monitoring and ensure patient identification. , improved handling of medical care requests and decentralized file management systems for electronic health records. (4)
How Blockchain Can Address Security Flaws and Hacks
A decentralized autonomous organization (DAO), sometimes labeled a decentralized autonomous corporation (DAC), is an organization that is run through rules encoded as computer programs called smart contracts. A DAO’s financial transaction record and program rules are maintained on a blockchain The precise legal status of this type of business organization is unclear. Examples of this business model are Dash governance and A well-known example, intended for venture capital funding, was The DAO, which launched with $150 million in crowdfunding in June 2016, and was immediately hacked and drained of US$50 million in cryptocurrency. This hack was reversed in the following weeks, and the money restored, via a hard fork of the Ethereum blockchain. This decentralized bailout was made possible by a majority vote of the blockchain’s hashrate. (5)
The code of a given DAO will be difficult to alter once the system is up and running, including bug fixes that would be otherwise trivial in centralised code. Corrections for a DAO would require writing new code and agreement to migrate all the funds. Although the code is visible to all, it is hard to repair, thus leaving known security holes open to exploitation unless a moratorium is called to enable bug fixing.
In 2016, a specific DAO, The DAO, set a record for the largest crowdfunding campaign to date. However, researchers pointed out multiple issues in the code of The DAO. The operational procedure for The DAO allows investors to withdraw at will any money that has not yet been committed to a project; the funds could thus deplete quickly. Although safeguards aim to prevent gaming the voting of shareholders to win investments, there were a “number of security vulnerabilities”. These enabled an attempted large withdrawal of funds from The DAO that was initiated in mid-June 2016. However, after much debate, on the 20th July 2016, the Ethereum community arrived at a consensus decision to hard fork the Ethereum blockchain to bailout the original contract.

About Infinity Blockchain Labs

Infinity Blockchain Labs (IBL) is a visionary R&D company engaged in intermediary and RegTech services employing blockchain technology. We focus on forming alliances with established businesses and regulatory institutions across various industries, as well as providing collaborative incubation for early stage blockchain projects. We aspire to empower Vietnam to become a global leader in blockchain.
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