Although blockchain networks maintain network security through technical means such as cryptography and consensus mechanisms, in reality they are still targets of various types of attacks. These attacks can compromise the security and integrity of blockchain and affect its users in different ways.
Possible Attacks Faced
Although blockchain technology is theoretically secure, this does not mean that it is completely immune to hacking and security breaches. Typically hackers and fraudsters threaten blockchain security in these main ways: phishing, Sybil attacks, 51% attacks and routing attacks.
A double-spending attack simply means that the same amount of money is paid to two recipients at the same time. In the case of real-life banknotes, an example of a double-spend is when someone successfully copies and spends $10 in cash on hand. Double spend attacks are usually targeted at users who accept unconfirmed transactions. For example, in the case of small purchases. Someone can get the item after paying for it, and then after the settlement is delayed due to network congestion, he takes advantage of this time to immediately send the same amount of money back to his address. As long as that later transaction has a higher fee, it may be confirmed first and subsequently invalidate the previous transaction. If a large number of copies are made, it can lead to the collapse of the entire financial system.
A Sybil attack, also known as a forged node attack, is when a hacker creates and uses many fake network identities to impersonate real users, which in turn floods the network, performs a denial of service attack or a double flower attack on the network, and crashes the system, thereby destroying the integrity and reliability of the blockchain. When the attacker successfully uses these fake nodes to enter the network, they can also prevent other general users from accessing and thus perform 51% attacks, etc.
A 51% attack is a situation where a single or group of participants has more than 50% of the computing power. This means that these participants can control the ledger and have the ability to manipulate the blockchain network, and thus perform double-spend attacks, for example. Mining usually requires a large amount of computing power distributed among different miner nodes. However, if a miner or a group of miners can pool enough resources, they can gain access to more than 50% of the blockchain network's mining arithmetic power.
Dusting Attack is usually an attack on crypto wallets launched by hackers or law enforcement officers to reveal the identity of the wallet owner by transferring a small amount of cryptocurrency to multiple wallets. Typically, dusting attacks are distributed to users' wallets in the form of a free drop, like a mass dispersal of dust. When the user claims and withdraws this amount of tokens, the attacker can access the user's wallet via the contract address attached to the tokens.
If a small amount of cryptocurrency is deposited into a wallet and is not detected and processed in a timely manner, it could lead to the user becoming a victim of phishing or result in the user's identity being compromised. Dust attacks are also a way for third parties to determine the true identity of crypto wallet holders, while compromising the security of the wallet and putting user privacy at risk.
The above describes some of the types of security attacks that are common in the blockchain space. Although these security attacks do not necessarily occur frequently, recognizing and identifying these concepts is crucial to prevent potential risks. As the blockchain industry continues to grow and application scenarios increase, it is necessary to ensure secure and trusted transactions on the blockchain.
At the same time, as a blockchain user, you also need to be aware of basic precautions, including avoiding sharing private keys or passwords, and always following up to learn the latest security protocols and best practices, keeping an eye out for security upgrades for various applications, etc.
Crypto investment involves significant risks. Please proceed with caution. The course shall not be considered investment or financial advice.