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Dave Miller – Tech Enthusiast & Security Expert – June 18th, 2022
More security flaws are developing in cryptocurrencies, but can ethereum get hacked? Ethereum has a market value of $293 billion and is the second most valuable cryptocurrency, but can it be hacked? When Bitcoin initially appeared in 2009, it wasn’t worth anything, so hardly one gave it a second thought.
But now, everyone wants to own it. Satoshi Nakamoto is a pseudonym for a group or individual who may or may not be genuine. All of these decentralized coins got built on his technical base. As a result, no one knows who invented the first crypto money. Since you have no idea how this crypto came to being, everything appears anonymous. Knowing if your favorite currency has a future or not is essential for your finances.
Continue reading to see what experts say about the most well-known cryptocurrencies, mainly how Ethereum will do in the market.
Cryptocurrency is a digital or virtual currency that uses encryption to keep transactions secure. It gets based on decentralized networks blockchain-powered. And a decentralized ledger maintained by a network of computers Where the cryptographic proof forms verified and recorded transactions on a blockchain. Instead of real money being carried about and traded in the real world, this peer-to-peer system allows anybody to make and receive payments to anyone else.
Since it can exist outside of the government’s control and central authorities because of its decentralized nature. People get drawn to the flexibility it affords, including cheaper and faster money transactions and decentralized systems that do not have a central point of failure.
Since the whole network regularly reviews this blockchain, bitcoin is generally considered hack-proof. As a result, attacks on the blockchain are incredibly improbable. However, numerous scenarios might lead to the cryptocurrency getting compromised.
On the other hand, these cryptocurrency-associated people and websites are more hackable. The list of incidents of such attacks is endless. In recent years, hackers have stolen billions of virtual assets due to some of these attacks. It is generally accomplished via hacking into specific cryptocurrency exchanges, with hackers taking at least $10 million from these exchanges in hacks in 2020.
Since the whole network regularly reviews this blockchain, bitcoin is generally considered hack-proof. As a result, attacks on the blockchain are incredibly improbable. However, numerous scenarios might lead to the cryptocurrency getting compromised.
On the other hand, these cryptocurrency-associated people and websites are more hackable. The list of incidents of such attacks is endless. In recent years, hackers have stolen billions of virtual assets due to some of these attacks. It is generally accomplished via hacking into specific cryptocurrency exchanges, with hackers taking at least $10 million from these exchanges in hacks in 2020.
Now, if we talk about the question of can someone hack your Ethereum, the answer would probably be a no. It is because Ethereum, Bitcoin, and other cryptocurrencies get based on secure mathematics. There are no backdoors via which a fictitious transaction may get carried out.
One of the reasons Ethereum and other blockchains are still in use today is because of this. As a result, Ethereum’s probability depends on the blockchain, making it far less vulnerable to an attack like bitcoin. However, there is a chance that hackers will be able to take advantage of the situation, as discussed below in the article.
Usually, what typically hacking refers to in cryptocurrency is something at the user’s end. Many beginners are unaware of the hazards and security flaws in the convoluted but lucrative realm of cryptocurrencies, making them ideal targets for hackers and cyber thieves.
The answer to can Ethereum get hacked or not is simple. The Ethereum network is free of problems and has been running smoothly since its inception. Hacking Ethereum would be nearly impossible for any single individual or group. The hack would necessitate the purchase of billions worth of computer equipment, which would be difficult to come by.
But the issue came with the DAO (Decentralized Autonomous Organization) that got created in 2016 on the Ethereum network. A vulnerability that got identified promptly fixed. But, due to this failure, The DAO had a detrimental influence on the Ethereum network and its currency. The DAO was home to around 15% of all ether and got hacked due to code flaws. To recover the stolen assets, the Ethereum blockchain was hard forked. Still, not everyone agreed, resulting in the network separating into two cryptocurrencies: Ethereum and Ethereum Classic.
Mathew Leising wrote a book on the historic DAO breach, nearly knocking down the world’s second potential blockchain cryptocurrency.
As a result, ensuring the security of the Ethereum ecosystem will entail testing, evaluating Ethereum apps and verifying smart contracts. Because everybody who creates a smart agreement understands that it will be vulnerable to assault if it can move a substantial quantity of money.
However, it’s important to mention that hundreds of businesses are developing DAO or governance solutions and that many smart contracts have similar flaws. The built complicated software using smart contracts is still in its infancy. Approximately 34,200 Ethereum smart contracts worth $4.4 million in the ether can get exposed to hacking owing to vulnerabilities in the code.
With the popularity of cryptocurrencies continuing to rise, you must invest a little time and effort upfront in reducing the danger of losing your digital asset. Follow the instructions outlined below.
The harder it is to crack a password, the longer it is for any hacker. Although no password is fully unbreakable unless 26 characters strong, it is nearly hard to hack in practice. If you forget your password, just remove your wallet and reinstall it with your seed words. However, you should never disclose your passwords and instead utilize password management to keep your credentials safe.
Two-factor authentication adds an extra layer of protection to your account information on exchanges. When using Two-Factor Authentication, knowing your password isn’t enough to get access to an account. Even if an attacker obtains your password, they will be unable to withdraw your cryptocurrency from the exchange unless they first acquire access to your 2F authentication code
Your private keys get stored in crypto wallets, which keep your crypto safe and accessible. Keep your valuables in your Hardware wallets at all times. It also has PIN codes, so the attacker will have difficulty retrieving your crypto even if your wallet gets physically taken. However, do not divulge your private keys. Two of the best possible hardware wallets are below
Hackers have uncovered flaws in blockchains that got previously thought to be unbreakable, resulting in a dramatic spike in the number of attacks. Even central banks once considered adopting them for new digital currency versions as it gets thought safe.
However, the more complicated a blockchain system is, the more opportunities there are for errors during setup. Even though the chances of a Blockchain getting hacked are low, there are techniques to compromise a Blockchain network. Here’s how a hacker can get into the blockchain.
Can Ethereum get hacked? Let’s look at the 51% attack.
A 51 % attack is arguably the most severe danger to blockchain technology. Since On blockchain, a majority vote is always necessary to select which transactions to allow and which to reject. If a single person or organization were to gain control of the bulk of the network’s mining power, there might be disastrous implications. Miners can establish a different copy of the blockchain in which they can produce a completely separate set of transactions that mark it as the basic version of the blockchain.
Note: A fork is a version of blockchain that differs from the original. It usually occurs when a community modifies the blockchain’s protocol or fundamental rules.
Even if it is fraudulent, the Bitcoin network’s transaction history might theoretically get modified and erased. In recent years, there have been several 51 % attacks. In the same month of 2020, the ETC blockchain got subjected to three consecutive 51 % attacks. While in 2021, Bitcoin SV got slid about 5 % value after a successful 51% attack. Although, Bitcoin has never got shut down, for even a brief period, just as it has never got effectively 51 % attacked.
Sybil is a character in a novel about a lady with a complicated personality disorder. A Sybil attack is an online security threat in which a single individual attempts to seize control of a network by generating many identities, nodes, or machines. A successful Sybil attack gives threat actors access to the system and allows them to undertake illegal operations. It stops genuine requests from being processed by crashing the system. So yet, no effective Sybil attacks on a significant cryptocurrency have got discovered.
Routing attacks can divide a network into two or more separate components. The hacker may now produce many false transactions in a single segment. Routing attacks may get used to delay the delivery of a block to a target node by 20 minutes while remaining undetected. When the split breaks down, the network rejects genuine transactions while the fake ones get legitimized.
In many cases, a single hacker would struggle to pull out a blockchain-targeted assault on their own. Still, like any network, blockchain may get broken into with sufficient skill, effort, and perseverance.
Apart from the security flaws that got discussed above. Here are some of the other problems that these virtual currency is facing right now
Fact: The total number of Bitcoin that could ever get mined is 21 million. There are 19 million bitcoins in circulation. While the total number of Ethereums is unconstrained, the number of Ethereums that may be issued yearly gets capped at 18 million!
After bitcoin, Ethereum is the second most popular digital currency, with a wide range of applications. However, Ethereum as a whole is entirely safe. The smart contracts associated with it require validation since it is the only way to have a secure Ethereum ecosystem. However, you never know what may happen. After all, a blockchain is a complicated system that relies on individuals’ unpredictable behavior, and people will constantly be looking for new methods to get in.
As more users join for the first time, the crypto market continues to rise to new highs. The rise and fall of the cryptocurrency market are attracting even new participants. No one, however, can foresee the future of digital assets. One thing is sure, however: blockchain is here to stay.
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Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.
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Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information.
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