With the exponential growth of cryptocurrencies, NFTs, and other blockchain implementations, there has never been a better time for cybercrime to turn vulnerability into big, easy money.
Blockchain hacks and security audits
We observe two main kinds of cryptocurrency-related assaults. One of them is aimed at the end user (the victim). The attack technique relies on social engineering tricks like convincing a victim to send crypto to an attacker's wallet.
The other kind of attack we encounter is a little trickier and necessitates a thorough comprehension of blockchain smart contracts and associated elements like side chains, cross chains, wallets, knowledge of various protocols, and more.
SecOps Group has now launched a blockchain smart contract security audit, to help blockchain developers identify and improve security issues before they are exploited in the wild.
Blockchain tricks: where to start
Blockchain is a globally distributed database of transaction records collected and maintained by a network of computers. Instead of a central authority like a bank, a large community oversees the records on the Blockchain. No individual has control over these records. Blockchain is based on decentralized technologies. These technologies function as a peer-to-peer (P2P) network when used together.
Different firms are utilising blockchain technology. Annual blockchain spending by businesses will reach $16 billion by 2023, according to recent research from A CBI Overview. The rate at which technology is being adopted is rising.
There are several blockchain platforms available today. Each platform uses its own technology. The Solidity language, for instance, is used by the Ethereum platform. The Hyperledger platform uses the Go language. The EOS platform uses Node.js. The multi-chain platform uses C++. The Cord platform makes use of languages like Kotlin and Java. On the Bitcoin platform, the most well-known cryptocurrency, Bitcoin (BTC), was created. On the Ethereum network, the cryptocurrency Ether (ETH) was created.
Compromising any of the above can lead to massive hacks.
Blockchain note hacks
Solana Wallet Attack – $7M – Aug 03, 2022
Solana is a blockchain based platform. Many Web3 applications are deployed on the Solana blockchain because it is cost effective to deploy. On the Solana blockchain, a recent hack based on wallets was seen.
The root cause of the breach is unclear, but appears to be due to a glitch in the wallet software used, leading to a compromised private key and/or seed phrase. A private key is unique and a user connects to its blockchain address. If a crypto wallet is lost, a seed phrase is used as a backup. It is a fingerprint of each of a user's blockchain assets. SOL tokens worth more than $7 million have been removed from more than 7,000 wallets.
$625 million - March 28, 2022 - Axie Infinity Ronin Bridge
The largest crypto hack ever measured in fiat dollars came after hackers gained control of most of the crypto keys that secured the cross-chain bridge of the play-to-win game. When an Axie developer clicked on a phoney PDF job posting, four of the nine keys were taken.
$325 million Wormhole Chain Bridge Attack scheduled on February 2, 2022
Wormhole is an Ethereum and Solana-based Web3 gateway that uses the blockchain. In order to move signals across two separate networks, it employs an intermediary bridge. A blockchain bridge is a protocol that links two blockchains that are economically and technologically distinct in order to allow for communication between them.
A hacker took advantage of smart contracts on the Solana to Ethereum Bridge to mine ether back and deposit his unsecured cash. This gave hackers the opportunity to combine Solana and Ethereum tokens to steal a total of $320 million. Wormhole has renamed its bridge portal and is currently worth more than $480 million, according to the crypto data firm. DeFi calls.
Smart contract audits
A smart contract audit is an extensive methodological examination and analysis of the smart contract code used to interact with a cryptocurrency or blockchain. This process is done to discover bugs, issues, and security vulnerabilities in the code, and to suggest improvements and ways to fix them. In general, smart contract audits are required since the majority of transactions involve money or other valuables.
Nowadays, security auditing of smart contracts is crucial. Thousands of decentralized finance projects and NFT projects have been developed on blockchain technology, also known as web 3.0, so protecting them is just as important as building them.
