Blockchain Security

Blockchain security is a vast and complex topic. It encompasses various aspects, from preventing the creation of meaningless new coins to issues of decentralization, consensus protocols, ledger immutability, transaction security, privacy, self-custody, Sybil attacks, resistance to different types of attacks, governance, and security budget. Blockchain is a complex system where some components rely on the security of others. The main goal of this article is to help readers understand that security is not just a single issue (like a 51% attack) but should be considered comprehensively.

For Users

People must trust the system they choose to use. They have certain expectations, and those expectations must be met. The relationship between security and trust is fundamental and symbiotic. Security mechanisms are essential to establish and maintain trust between users and the system, including those involved in network consensus and the development team.

People use the network through blockchain wallets. They must realize that they trust the protocol developed by the team. Governance, in various forms, also falls into this category. Additionally, users trust all parties involved in consensus, meaning those who create blocks or delegate valuable resources (e.g., ADA in Cardano pools or hash rate in Bitcoin pools). It can be said that users trust the decentralization of the network. As you will see later in the article, security often depends on decentralization.

User expectations are based on information publicly shared in the media. If expectations are not met or serious issues occur, we can speak of a security vulnerability. One of the most trusted pieces of information users have about blockchain technology is the immutability of the blockchain’s monetary policy.

Furthermore, users believe that if they use a self-custody wallet, no one in the world can steal their assets, change their account balance, or prevent them from spending their assets. Only they can spend their assets through transactions. Currency must be spendable at any time, so the network must never go down. The blockchain network must be robust and resistant to various types of attacks. No one can freeze users' accounts, create invalid transactions to transfer money to another address (without the valid owner's signature), or increase the amount of money in circulation. The network's operational capability is also related to long-term economic sustainability. Consensus participants must be financially rewarded for working for the network. This means security depends on monetary policy and reward mechanisms.

For Security

Security requirements are set for:

- Development and governance teams: Ability to fix bugs and address shortcomings, quality of source code (must be free of security vulnerabilities).
- Honest behavior of consensus participants (block creators and delegators).
- Consensus protocol: Must ensure continuity, immutability of blockchain history, and data integrity.
- Decentralization (distribution of decision-making power): Helps ensure fair behavior of consensus participants and the system's longevity.
- Economic sustainability and reward mechanisms: Ensures income for participants.

Source: Cexplorer