Blockchain technology is not as secure as initially thought and it cannot stop all hacks. More and more security holes are appearing on cryptocurrency and smart contract networks, according to Massachusetts Institute of Technology’s recent report.
Blockchain not fully secure
MIT’s recently published review showed that blockchain platforms are not as secure as initially perceived, with several hack reports surfacing over the past few months. In the last two years, hackers have stolen roughly 2 billion USD, mostly from exchanges, with the MIT researchers arguing that the figure could be higher than that.
Blockchain platforms are currently facing attacks from both individual hackers and groups, as evidenced by Chainalysis’ recent report, which revealed that two groups have stolen more than a billion dollars from exchanges over the past few years.
According to the researchers, blockchain’s unique security features also imply that they have unique vulnerabilities that hackers are currently exploiting, citing a number of vulnerabilities found on Coinbase earlier this year.
The report pointed out that the security flaws on blockchain networks are a result of unintentional bugs in the system and human errors. “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,” stood in the report.
To further prove their point, the researchers cited numerous bounties awarded to white hat hackers over the years for reporting flaws on blockchain platforms. According to stats available from HackerOne, hackers made roughly 878,000 USD from blockchain-related bounties last year.
Despite the report pointing out flaws in blockchain security, MIT is bullish about the technology. In last year’s report, the institution predicted that blockchain would become common this year, and believes it is a revolution that will disrupt the global financial landscape.
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