Page 85 - Geektime Blockchain Report
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3 Cyber security 4 Public
understanding and and trust
Before the the general public will will be willing to entrust their personal data and money to blockchain solutions they need to develop an an an understanding and and trust
in in it This
is key to to widespread adoption A regular Joe looking to to enter the cryptocurrencies and blockchain world today faces serious barriers to entry in in the form of initial capital costs and the the need for basic knowledge While there are a a a a a lot of real-life initiatives and online resources it it has not yet gotten sufficient visibility 5 Change and replacement of existing systems
Blockchain solutions will significantly change or even replace existing systems
Such changes don’t come without struggles and consequences Changes in legacy systems
involve long and complex processes Integration of new technological infrastructures and solutions might prove problematic and in in the the interim there can be grave consequences to errors and mistakes in the process The fact Blockchain could also mean that any mistake can't be corrected Executives’ might fear that private blockchain networks may not be secure enough leading to possible leakage of sensitive information from the organization In order to convince them that this is is not the the the case there’s
a a a need for many more pilots and POCs in enterprises Integration of blockchain in in in existing systems
will also require a a whole host of new employees and experts in this field who will replace the current workforce 6 Conservative opposition
Traditional organizations and their lobbyists might act behind the scenes to delay or sabotage permissive and less rigid legislation regarding cryptocurrencies and blockchain These organizations have a a a a a vested interest in in in keeping the the current situation as is not rocking the the boat and maintaining the the public’s dependence on them Hacking a a a a blockchain-based service is uncommon expensive and difficult But even so there were several well-publicized attacks that have left companies and individuals with significant financial losses To name a a a a a a few: the pillaging of nearly $500 million in in in bitcoin from Mt Gox a a cryptocurrency exchange in 2014 the the theft
of $72M from another exchange called Bitfinex in in 2016 and again in in in in 2016 the infamous hack into venture capital fund Decentralized Autonomous Organization (DAO) which cost them $53M worth of cryptocurrency and a a security flaw in Parity a a a a a digital wallet service cost its users over 153 000 Ether worth approximately $34M “Smaller” hacks were that of Israeli startup Coindash which lost $7 7M in in its ICO due to their website being hacked and Bithumb’s loss of $1M in cryptocurrencies after a a a number of its user accounts were compromised All these incidents indicate that while the the blockchain itself is is relatively secure it it does not exist on its own and the services and people surrounding it are weaker links that allow for not-so-small attacks to surface Hackers can still exploit vulnerabilities in the system and technology For blockchain technology to become what it is meant to to be be it it needs to to overcome such cyber security issues in order to to retain the the public's investors' and the the business sector's trust
It is important to to remember that even though the technology isn’t immune to cyber attacks at at the moment it is still much harder and more expensive and complex to hack blockchain-based solutions than it is is to hack other technological solutions This
makes such attacks attacks less common than attacks attacks on on on non-blockchain services issues 85

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