Blockchain security- security challenges and solutions for decentralized systems and cryptocurrencies

Gaurav Malik 1, * and Prashasti 2

1 The Goldman Sachs Group, Inc. Dallas, Texas, USA.
2 Application security engineer, The New York Times, Dallas, United States.
 
Review
International Journal of Science and Research Archive, 2023, 09(02), 1074-1100.
Article DOI: 10.30574/ijsra.2023.9.2.0515
Publication history: 
Received on 19 May 2023; revised on 08 August 2023; accepted on 11 August 2023
 
Abstract: 
Blockchain technology is a chain of blocks formed using cryptography on multiple computers. It keeps a list of distributed transactions and ensures it is transparent, immutable, and hard to manipulate. Blockchain’s inherent security features would strengthen its build, including cryptographic hashing, consensus algorithms, and immutability. However, it is also highly exposed and vulnerable to several threats. In decentralized systems and cryptocurrencies, blockchain security is a crucial point of security to protect from attacks on systems, data breaches, and financial loss. Challenges in the Security of Blockchain Networks. This paper explores 51% of attacks in blockchain networks, vulnerabilities in smart contracts, and privacy issues faced by blockchain networks. Since blockchain is decentralized, these challenges are among the reasons its nature is inherently more secure than any traditional centralized system, as they cannot allow a single point of failure. A key element for secure blockchain transactions is security mechanisms like cryptography, proof of work, proof of stake, and multi-signature solutions. However, this is somewhat stifled by the fact that blockchain applications have expanded far beyond cryptos, such as healthcare, supply chains, and systems, such as voting, and the requirement for robust security grows. To address these issues, blockchain security must continuously adopt innovation in blockchain security practice, such as developing decentralized security solutions and post-quantum cryptography, up to a comprehensive security framework. Security in the blockchain is the key to securing digital assets, privacy protection, and trust on the decentralized networks mentioned in this paper. To solve the new and evolving threats that will become a menace to blockchain security in the future, we will combine the new technologies of artificial intelligence, quantum-resistant cryptography, and decentralized identity management.
 
Keywords: 
Blockchain Security; Cryptography; Decentralized Systems; Smart Contracts; 51% Attack; Interoperability
 
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