How safe is blockchain?
How Safe is Blockchain Technology?
Blockchain is not impenetrable to cyber-attacks. Although blockchain is not immune to hacking, its decentralized nature provides it with a stronger line of security. A hacker or criminal would need control of more than 50% of all machines in a distributed ledger to change it (it’s unlikely, but it’s possible—more on that later).
How Blockchain Works?
Blockchain technology has emerged as a powerful tool for recording information across many computers in a way that is permanent and unalterable. Now blockchain technology is being used for keeping records of other things, too.
How to Ensure Security in Using Blockchain Technology?
Blockchain can be secure, but it depends on how you set it up. Some of the most popular blockchains, including Bitcoin and Ethereum, are relatively easy to hack. This is because they rely on central entities to confirm transactions.
Here are ways on how you can be safe and secure while using blockchain:
1. Use a Strong Password
First of all, you should have a strong password. Passwords are the first line of defense in protecting your cryptocurrency. A strong password includes a combination of upper and lower-case letters, numbers, and symbols.
2. Be Aware of Phishing Emails.
Phishing scams are designed to steal your private information, including passwords. They often appear as emails that appear to come from a legitimate source, like your bank. If you get an email like this, do not click on any links or download any attachments unless you are 100% sure it is genuine.
3. Use Cold Storage for Storing Cryptocurrency.
Cold storage is a way of storing cryptocurrency offline, away from online threats. You should use cold storage only for long-term storage of cryptocurrency (e.g., holding onto investments).
4. Keep Activities Private
Blockchain records everything, which means that everyone can see everything that happens on the ledger. This can be great if you want everyone to see what’s happening with your cryptocurrency—but it could also mean that your transactions are exposed to prying eyes if you’re not careful.
5. Monitor Your Email for Phishing Scams.
Blockchain can be secure, but it depends on how you set it up. Some of the most popular blockchains, including Bitcoin and Ethereum, are relatively easy to hack. This is because they rely on central entities to confirm transactions.
6. Use an Encrypted Connection.
If you’re using a public WiFi network, your connection might not be encrypted. If someone else is using the same network as you, they could view any information sent across the connection. It’s best to use an encrypted connection (like HTTPS) whenever possible.
7. Backup Your Private Keys.
If you lose your private keys, you lose all of your cryptocurrency. This is why it’s important to back them up in multiple places. It’s also a good idea to keep your backup keys somewhere safe (i.e., not on a cloud service).
8. Keep Your Software Updated.
Many blockchain platforms offer updates to their software to address any security holes. If you haven’t updated for a while, check to see if there’s an update available before using the software.
