There has never been a better moment for a cybercriminal to convert vulnerability into large, simple sums of money because to the exponential expansion of cryptocurrencies, NFTs, and other blockchain applications.
Blockchain Hacks and Security Audits
We observe two main kinds of cryptocurrency assaults. One of these is user-centric (the victim). The attack method makes use of deceptive social engineering techniques, such persuading the victim to send cryptocurrency to the attacker's wallet.
The second kind of attack we encounter is a little trickier and necessitates a thorough comprehension of blockchain smart contracts and related elements like side chains, cross chains, wallets, knowledge of multiple protocols, and more.
A blockchain smart contract security audit has been released by The SecOps Group to assist blockchain developers in locating and resolving security flaws before they are used by hackers in the wild.
Blockchain Hacks: where do they start
Blockchain is a database of transaction records that is distributed, verified, and up-to-date globally by a network of computers. The records on the Blockchain are governed by a vast community rather than a single central authority, like a bank. These documents are not under the authority of a single individual. Blockchain is built on technology that is decentralised. When combined, these technologies operate as a peer-to-peer (P2P) network.
Numerous businesses are utilising blockchain technology. According to recent CBInsights analysis, annual blockchain investment by enterprises would exceed $16 billion by 2023.
There are several blockchain platforms available today. Every platform employs a different technology. One platform that makes use of Solidity is Ethereum. The Go language is employed by the Hyperledger platform. On the EOS platform, Node.js is used. C++ is used by the multi-chain platform. The Corda platform makes use of languages like Kotlin and Java. The most well-known cryptocurrency, Bitcoin (BTC), was developed using the Bitcoin platform. The cryptocurrency Ether (ETH) was developed on the Ethereum network.
Major assaults may result from the breach of any of the aforementioned.
Featured Blockchain Tricks
Attack on Solana Wallets: $7 million; August 3, 2022
Solana is a platform built on the blockchain. The Solana blockchain is used to construct several Web3 apps due to its low development costs. On the Solana blockchain, a recent breach based on wallets was detected.
Although the exact nature of the breach is unknown, it seems to have been caused by a flaw in the wallet software that allowed the private key and/or seed phrase to be compromised. An individual's private key links them to their blockchain address. A backup in case a crypto wallet is misplaced is a seed phrase, which is a fingerprint of all a user's blockchain assets. More than 7,000 wallets have had SOL tokens worth more than $7 million deleted.
March 28, 2022 - Axie Infinity Ronin Bridge, $625 million
After hackers took possession of the majority of the crypto keys that protect the cross-chain bridge of the play-to-win game, there was the greatest crypto hack ever measured in fiat currency. When an Axie developer opened a phoney job offer PDF, four of the nine keys were taken.
$325 million Wormhole Cross Chain Bridge Attack on February 2, 2022
Wormhole is an Ethereum and Solana-powered Web3 gateway built on the blockchain. To transmit tokens between two separate networks, it employs a middle bridge. In order to enable communication between two blockchains that are economically and technologically diverse, a blockchain bridge is a protocol that connects them.
Hackers used the Solana to Ethereum bridge's smart contracts to create and cash in wrapped ether without putting up collateral. As a result, hackers were able to take Solana and Ethereum tokens worth a total of $320 million. Llama, a crypto data DeFi company, reports that Wormhole has rebranded its bridge site and presently holds more than $480 million.
Smart Contract Audits
A detailed, methodical investigation and analysis of the smart contract code that interacts with a cryptocurrency or blockchain constitutes a smart contract audit. This procedure is used to find bugs, issues, and security vulnerabilities in the code as well as make suggestions for changes and solutions. Smart contract audits are typically required since the majority of contracts include money or other valuables.
Nowadays, security auditing of smart contracts is crucial. Securing them is equally as crucial as developing them since thousands of decentralised financial initiatives and NFT projects have been built on blockchain technology, also known as web 3.0.
