The blockchain is considered unassailable from security as it is exempt from human intervention and thanks to the use of private, public keys, and asymmetric cryptography. But this is not the case, and, as for other systems, it is necessary to adopt controls and safety standards. Let’s see which ones.

Blockchain offers a radically different approach to IT security, which can go as far as certifying the identity of a user, guaranteeing the security of transactions and communications, and protecting the critical infrastructure that supports operations between organizations.

A paradigm shift that can allow you to make the most of shared online services. But for this technology to truly become a catalyst for social and industrial change, it is essential to clarify the possible impacts on safety and data protection.

Blockchain: Bad or Good for Security?

The high level of addiction to newer technology and the Internet has paved the way for new business-centric models for companies. But this has also created new opportunities for hackers to exploit. They seek to steal valuable information (such as intellectual property, information from personal identification, medical records, financial data) and monetize access to data through the use of advanced ransomware techniques or by interrupting overall business activities through DDoS attacks.

In this context, is the blockchain support or an obstacle to computer security?

The inescapable premise for talking about computer security is built around three essential elements: confidentiality, integrity, and availability. Blockchain expert, Andrey Sergeenkov, said: “Today’s internet is a testament that humanity relies heavily on an economy that depends on the dissemination of information. As it is with every economic, the internet comprises of the suppliers and the consumers. The suppliers are those entities that facilitate the availability of information, particularly internet service providers. On the other hand, the consumers are the average internet users who gulp the information made available on the web.”

Management and Protection of Private Keys

Although blockchain operators mostly back up their private keys in a secured secondary location, theft of their private keys considers high risk. In a corporate environment, it will be essential to adequately protect the material of the secret keys so as not to jeopardize the register and leave it confidential and intact. An example of a protective shield is the use of unique digital keys that implement crypto processor technologies such as hardware security modules (HSM) to guard the main secrets and provide a safe and tamper-proof environment.

Another example is the use of a secure application system such as ThreeFold 3Bot. The 3Bot acts as your digital self-application. It is your personal all-in-one application, which gives back the ownership of your data to only you and no one else. 3Bot manages, guards, and exchanges data and information – only when authorized by you.

Kristof De Spiegeleer, co-founder and chairman of the ThreeFold Foundation said:

“Our inspiration was to be able to use this technology to redesign the basics of the Internet – a new Internet which is owned by all of us. A new Internet which requires 10x less energy, which is local to all of us, which is more secure, and which is not manipulated. We have a technology company called TF Tech where we develop the technology and a not for profit foundation which represents all the “farmers” of this new Internet capacity.“

Organizations should be aware they are in danger of losing private keys if their blockchain account is accessed from multiple devices. They must pursue appropriate key management procedures (such as the RFC 4107 cryptographic key management procedures or IETF) and internally develop governance procedures for security keys. Today’s cryptographic algorithms, used for the generation of private and public keys, are based on factoring problems of integers, which are difficult to solve with the current computing power. The quantum computing can be an immediate solution of the blockchain security due to their advancement on current cryptography practice.

Data Privacy and Protection in the Blockchain Network

According to the National Institute of Standards and Technology (NIST), data confidentiality refers to “the property that sensitive information is not disclosed to unauthorized persons, entities or processes.”

Protecting access to the blockchain network is essential to guarantee access to data. If an attacker were in the position to access the blockchain network, his chances of being able to access the data would increase.

It follows that authentication and authorization checks must be implemented in the blockchain. Although this technology was initially shaped without specific security access controls (due to its public nature), some blockchain operations start to address the glitches of access control and confidentiality. The technology is providing complete block encryption functionality, which ensures that the data are not accessible to unauthorized parties while they are in transit.

In public blockchains, it is not necessary to control access to the network because the chain protocols can provide access and participate in the network to anyone. Private blockchains, on the other hand, require the presence of appropriate security controls to safe and protect access to the system. It could be assumed that local networks and systems are already well protected behind the perimeter of an organization from different internal security levels (such as firewalls, virtual private networks, VLANs, Intrusion Detection & Prevention Systems, etc.).

However, thinking of relying solely on the effectiveness of these security checks is insufficient. For this reason, best practices recommend that security measures (such as access controls) be applied right at the application level. The method is being the first and most important line of defense, especially if an attacker can access the local network or is already present. The blockchain can provide cutting-edge security measures by exploiting the public key infrastructure to authorize and authenticate the parties and encode their communications.

If an attacker then accesses a blockchain network and its data, it would not necessarily be able to read the information.

The complete encryption of the data blocks can be applied to the data during the transaction, efficiently guaranteeing its confidentiality. End-to-end encryption requires that only those who have permission to access encrypted data, through their private key, can decrypt and view the data.

Using encryption keys can provide establishments with a higher level of security. For example, the implementation of secure communication protocols on the blockchain ensures that even in a situation where an attacker tries to execute a man-in-the-middle attack, he would not be able to falsify the identity of the interlocutor or detect the data. Even in a risky scenario where private keys were compromised; the past sessions would still be kept confidential due to the seamless advanced security features of security protocols.

Protection of Data Integrity in the Blockchain

In the full life cycle of the information system, it is critical to ensure data integrity. Cryptography, the use of digital signatures, or hash comparison are some of the best examples of how system owners can safeguard data integrity. The built-in immutability and traceability of blockchains already ensure data integrity to the companies.

The consensus model protocols associated with technology present an additional level of data security assurance for organizations, as generally, 51% of blockchain users must accept that a transaction is valid before it can be added to the platform. When a transaction is to be proven, the majority of users must agree. However, if you could create a user group and control 50 + 1%, you could generate scam transactions. It becomes more straightforward when a blockchain is very small or newborn, so it is crucial to be very careful.

Conclusions

In conclusion, blockchain can help improve cyber defense techniques, preventing fraudulent activity through consensus mechanisms, and detecting data tampering.

However, no computer defense system can be considered 100% secure. What is regarded as safe today will not be tomorrow due to the lucrative nature of cybercrime, and the ingenuity of the criminal hacker is seeking new methods of attack.

Although some of the underlying functionalities of the blockchains can guarantee the confidentiality, integrity, and availability of the data, it is necessary to adopt controls and IT security standards for the organizations that use the blockchain within their technical infrastructure, to protect their data from external attacks.