Blockchains are not “unhackable” after all

Until recently, blockchains were thought of as an “unhackable” technology powering and securing cryptocurrency transactions. New data reveals that popular opinion no longer seems to be correct. According to a report prepared by MIT Technology Review, hackers have been able to steal approximately $2 billion worth of cryptocurrency since 2017 by attacking the unique vulnerabilities of blockchains. Experts have warned that just because a currency or information is stored on a blockchain does not necessarily mean that it is more secure than any other storage form.

Most recently, a hacker was able to gain access to and control over Ethereum Classic’s network. By rewriting the transaction history, the attacker was able to spend the same amount of cryptocurrency twice. In this way, they got away with almost $1.1 million.

Blockchain Cybersecurity 101: The same qualities that make blockchain so secure may, in fact, be the source of its vulnerabilities. The most common forms of cryptocurrency hacks are phishing, malware, stealing the private keys to cryptocurrency wallets, and finally, 51 percent attacks. While the first 3 target the exchanges, the latter targets the blockchain itself. In response, more and more startups are emerging every day, claiming that they can make blockchains more secure and hack-proof. AnChain.ai is one such example, using artificial intelligence to keep track of any suspicious transactions on a ledger to detect malicious bot activity.