Success Of Blockchain Hinges on Security

The adoption, innovation and demand for market changing digital technologies such as Blockchain, Artificial Intelligence, Augmented Reality, IoT, API Platforms, Autonomous Vehicles, etc. continues to grow at unprecedented speed across the globe and all major industries such as education, aviation, automotive, utilities, government, entertainment, finance, retail, health care, and tourism sectors. Key drivers include:

  • solving legacy business problems,
  • delivering frictionless customer centricity,
  • delivering value and,
  • gaining competitive advantage.

One of the fast-adopted technology is Blockchain whose technology market value is expected to reach US$9.6 billion by 2024. Its wider adoption is due to its potential to enable automated, trust-based agreements in distributed and decentralized online transactions using smart contracts. The technology is transformational.

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Raj Samani, chief scientist at McAfee recently said- “Like so many other new robust technologies, blockchain can have a revolutionary impact in solving very real business problems, but only so long as security does not fall victim to urgency in the rush to adopt the technology,” “Given blockchain’s potential for creating value, and the tremendous enthusiasm to implement it, cybercriminals will seek every opportunity to strike at all available technical and human vulnerabilities in the emerging blockchain ecosystem.”

At Fusion Networks, we are seeing some of our customers doing great things in the blockchain space and working with them using security design thinking to build and embed security resiliency so that they can realise the full potential for this revolutionary technology without worrying about the threats and risks that could threaten their initiatives.

“Governments, cybersecurity vendors, and businesses must be diligent in understanding the threats and minimising the risks. Without adequate education for users and industry, secure implementation best practices, and strong technical security standards, the widespread adoption of blockchain by major industries and governments could end up costing billions of dollars and impacting millions of people.”, Samani said.

We encourage our customers and other businesses to work with the right security partner or adviser to ensure that they are aware of the best security design approaches to mitigate against some of the key attack vectors impacting the block chain technology e.g.

  • Malware (examples: ransomware, miners, and cryptojacking)
  • Phishing
  • Design and Implementation Vulnerabilities
  • Inherent Technology weaknesses

The nefarious actors are staying ahead and adopting well established techniques to attack businesses and consumers. Coincheck, one of Japan’s first and most popular exchanges, lost $532 million in NEM coins, affecting 260,000 investors in January 2018.

The threats are real. Sustainable innovation is built of building security into the entire value chain.