Blockchain networks are widely considered “distributed” because no one can control them, but they are subject to change in the end with new reports.
Trail of Bits, a New York-based cybersecurity company, has investigated the basic characteristics of blockchain and its associated cybersecurity risks.
Researchers at the company have discovered that blockchain has an “unintended centrality” that can make it vulnerable to potential corruption and theft.
The risks inherent in blockchain and cryptocurrencies are not well explained and can be ignored or even ridiculed by those trying to “cash in”, the company says.
All cryptocurrencies use what is called blockchain technology. This is an open ledger that records transactions in code. Blockchain allows you to record and check all records in a transaction, making it less susceptible to changes and “immutable.”
What is a blockchain?
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets on business networks.
Assets can be tangible (house, car, cash, land) or intangible (intellectual property, patents, copyright, brand).
The blockchain provides instant, shared and completely transparent information stored in an immutable ledger.
With this shared ledger, transactions are recorded only once, eliminating duplication of work that is common in traditional business networks.
All cryptocurrencies, including Bitcoin and Ethereum, use blockchain. This is an open ledger that records transactions in your code.
The blockchain allows you to record and check all records in a transaction, making it “immutable” (unaffected by changes).
Blockchain also keeps track of all cryptocurrency transactions on decentralized public ledgers in a set of blocks, allowing users to keep a record of payments without having to record them in a central bank.
However, a new report from the Trail of Bits commissioned by the Defense Advanced Research Projects Agency claims that blockchain is not fully decentralized.
According to the company, the lack of true decentralization can lead to the manipulation of digital currencies by people, businesses and even governments.
“Others can make it impossible for you to transfer your cryptocurrency and make it impossible for you to use it at all,” said Dan Guido, CEO of Trail of Bits. I am saying.
“This really affects the real world. If Russia wanted to stop people from donating to Ukraine, they could do it.
Since each transaction between two people occurs on the blockchain, it is recorded as a “block” of data that contains information such as sender, receiver, and number of coins.
Computers in the network, called “nodes,” check the transaction details to make sure the transaction is valid and authenticate the transaction.
This allows users to keep a record of their payments without the need for a central bank or other primary sources.
This process of depriving a “centralized” entity (such as a bank) of power and control is known as “decentralization.”
Decentralization, by definition, means “everyone controls it, so no one controls it,” but Trail of Bits findings show that this doesn’t exactly apply to blockchain. Suggests.
Cryptocurrencies such as Bitcoin are the Internet version of money-a unique digital asset that can be transferred from one person to another.
Edge crypto industry when Bitcoin exceeds the key $ 20,000 level
The crypto industry was on the edge on Monday as Bitcoin struggled to stay above its major $ 20,000 resistance level.
Bitcoin, the world’s most popular cryptocurrency, fell to a low ($ 17,592.78) that wasn’t seen in a year and a half on Saturday, falling below the significant $ 20,000 marker for the first time since December 2020.
High inflation and a sharp fall that spurred future rate hikes have caused other small tokens, such as Ethereum, that normally move in conjunction with coins to fall to similar lows.
Researchers at the Trail of Bits have performed previous academic studies and analysis and meta-analysis of actual findings that have never been aggregated.
None of the issues listed in the Trail of Bits have anything to do with the basic cryptographic principles of the blockchain that dictate how transactions take place between two nodes.
Instead, “unintentional centrality” argues that it can overturn the way blockchain is implemented and empower individuals or groups.
One of their findings was that 60% of Bitcoin traffic over the last five years has been processed by only three Internet Service Providers (ISPs).
This is a problem because the ISP and the government that controls it can prevent the transfer and sale of certain cryptocurrencies.
This raises the question of whether it happens when a malicious employee of the ISP decides to block or filter cryptocurrency traffic.
“Let’s say someone in your country who has good top-down control of the Internet starts to interfere with that network,” Guido said. NPR..
‘They can rewrite history. They can censor transactions. They can make it so you can’t spend your Bitcoin.
Second, 21% of Bitcoin nodes are running older versions of Bitcoin Core clients. This is a type of software that is known to be vulnerable to cyber attacks.
“We have shown that software bugs can lead to consensus errors, but obvious software changes can also change the state of the blockchain,” the company said.
“Therefore, the core developers and maintainers of blockchain software are the centralized points of trust in the system and are vulnerable to targeted attacks.”
Also, as of March 2022, about 55% of Bitcoin nodes could only be addressed via open source software called Tor.
This is a problem because a malicious Tor exit node (the last node that goes through the Tor network before traffic goes out to the Internet) can change or drop traffic, similar to an ISP problem.
and Podcast Explaining the findings, the Trail of Bits states that some blockchains are more protected than others, but are “all vulnerable.”
“Someone running in another government, ISP, or Tor exit node will tell you how to use your cryptocurrency,” Guido said.
“It takes more research to find out when people are censoring transactions and how networks are behaving in unexpected ways, because for now it’s very difficult.”
The Trail of Bits also states that blockchain technology is “innovative” and the company believes it is not “by the extent of the blockchain that goes against imagination.”
What is Bitcoin?Look at digital currencies
What is Bitcoin?
Bitcoin is called “cryptocurrency”.
This is the internet version of money, a unique digital asset that can be transferred from one person to another.
Bitcoin is generated using open source computer programs to solve complex math problems. This process is known as mining.
Each Bitcoin has its own fingerprint, defined by a public address and private key, or a string of numbers and letters that gives each a specific ID.
They are also characterized by their position in the public database of all Bitcoin transactions known as blockchain.
The blockchain is maintained by a distributed network of computers around the world.
Bitcoin is popular not only with libertarians, but also with technophilia, speculators, and criminals because it allows people to exchange money without the involvement of a third party.
Where did Bitcoin come from?
People create Bitcoin through mining.
Mining is the process of solving complex math problems using a computer running Bitcoin software.
These mining puzzles get harder and harder as more Bitcoins circulate.
Rewards are regularly cut in half as new Bitcoins are deliberately slowed down.
Who is behind the currency?
Bitcoin was launched in 2009 by an individual or group operating under the name Satoshi Nakamoto and was subsequently adopted by a small clutch of enthusiasts.
Nakamoto is off the map as Bitcoin has begun to gain widespread attention, but supporters say it doesn’t matter: the currency follows its own internal logic.
Dr. Craig Wright was suspected of being the creator after a report by Wired last year and is now confirming his identity as the founder of cryptocurrencies.
What is the value of Bitcoin?
Like other currencies, Bitcoin is worth as much as you and your counterparts want.
Bitcoin is a line of computer code that is digitally signed each time you move from one owner to the next.Physical coin used as an illustration
In the early days, boosters exchanged Bitcoin for minor favors or as a game.
One website provided them for free.
As the market matured, the value of each Bitcoin increased.
Is the currency widely used?
Companies ranging from blogging platform WordPress to retailer Overstock are on the cusp of Bitcoin in the midst of a surge in media coverage, but it’s not clear if the currency has actually taken off.
On the one hand, BitPay, the leading Bitcoin payment processor, works with more than 20,000 companies. This is about five times that of last year.
On the other hand, according to the Bitcoin wallet site blockchain.info, the total number of Bitcoin transactions remains almost constant between 60,000 and 70,000 per day over the same period.
Is Bitcoin particularly vulnerable to counterfeiting?
Bitcoin networks work by leveraging individual desires for collective benefit.
A network of tech-savvy users, called miners, keeps the system honest by putting computing power into the blockchain, which is the global execution aggregate for all Bitcoin transactions.
Blockchain prevents fraud from using the same Bitcoin twice, and miners are rewarded for their efforts by being given Bitcoin from time to time.
Forgery is not an issue as long as the miner keeps the blockchain safe.