A Security Framework For Blockchain Applications

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Introduction: 

Blockchain technology is fundamentally used for cryptography, but nowadays, companies are using it to handle distributed databases and even healthcare. So why are they opting for it? Simple! Blockchain assures security through transactions that are made through consensus and decentralization.

Yet blockchain is prone to cyberattacks like London Hard Fork, where the hacker was successful to steal $50 million worth of funds. So here arises another question, how do we keep the blockchain application safe? Let me walk you through some security frameworks for blockchain applications. But first, let's see some cyberattacks.

Blockchain World & Cyberattacks: 

Blockchain is secure but that doesn’t mean it can not be hacked! History has given us a lot of incidents to witness due to cyberattacks. There were trillions of losses in the blockchain world. 

According to the statistics, the 6 most costly blockchains were hacked in 2021. Another survey showed that manipulating decentralized finance (DeFi) protocols was the fastest-growing method to swipe crypto in 2021. More than $1.6 billion has been exploited from DeFi in 2022 thus far!

So what kinds of blockchain security frameworks are there? Keep reading to find out! 

Blockchain Security Framework: 

When creating a blockchain application it is really essential that all the security measures are taken into account. A complete security-controlled framework for applications contains 

Data Privacy: 

Data privacy is the protection of personal information from unauthorised access and use. It ensures the collection, storage, processing, and use of personal data in an appropriate manner.

Smart Contract Security: 

Rigorous analysis of the smart contract allows the security specialists to go through every line of code and identify any loophole present. Smart contract auditors at BlockApex do automated reviews along with extensive execution of the test cases in search of any vulnerabilities to secure the application. 

Identity & Access Management: 

Identity and access management is very essential as it allows people to access the resources, the application should be smart enough to identify appropriate people to access it. 

Advanced Penetration Testing: 

Advanced pen testing involves a deep security assessment and the latest offensive security approach to discover crucial vulnerabilities in applications before they are exploited. It includes pen testing everything from web apps to wallets and Layer1 blockchains and other assets like bridges, cryptocurrency wallets, web apps, mobile apps, digital custody solutions, cloud security, and APIs. 

Key Management: 

Public Key Infrastructure (KPI) is utilized in the blockchain to verify and confirm the transactions made on the blockchain. Securing the key management function could be an obstacle, as an attacker if found the keys by any means like brute force, side-channel attack, physical access to the system, ineffective encryption, replay attack, etc. They can enter and make destructive choices by swiping millions from it. So it's really crucial to protect the keys. 

Complete Security: 

This includes completing and constantly evaluating the company’s most vital assets, pushing maximum automation, and delivering top cybersecurity consulting and implementation every step of the way. This includes security architecture assessment, code audits, security best practices, custom red team engagements, web application pen-testing, cloud provider pen-testing, API pen-testing, technical security compliance, continuous smart contract auditing, blockchain protocol security assessment, and DevOps.

In a Nutshell: 

Taking all these security measures into account it is highly recommended that security should be top-notched so that the Dapp remains intact and funds safe. 

More Audits

Red, Blue & Purple Team: Attacker, Defender & Facilitator

The purple team exercises allow for regular testing of controls to ensure they still function as expected. Combining red and blue functions also means that the blue team does not have to learn the red-team skills, or take the time to recreate attack behaviors themselves.

ZUNAMI - Hack Analysis

Zunami is a decentralized protocol operating in the Web3 space, specializing in issuing aggregated stablecoins like UZD and zETH. These stablecoins are generated from omnipools that employ various profit-generating strategies. Recently, the protocol was exploited, resulting in a loss of $2.1M.

Borderless Money - Audit Report

Borderless Money is a decentralized finance protocol redefining how Social Investments are made, using yield-generating strategies and contributing to social causes. An open, borderless digital society, with borderless money, where the goods, services, technology, information, opportunities, and capital can flow through the borders from one hand to many, fairly, transparently.

Infiltrating The EVM IV - Echoes of the Past, Visions for Tomorrow

The article "Infiltrating The EVM IV - Echoes of the Past, Visions for Tomorrow" takes readers on a captivating journey through real-life incidents in the realm of blockchain security. Three gripping narratives stand out: the MISO rescue mission, the Dark Forest of Ethereum, and the Siren Market exploit.

Smart Contract Security Audit: An Auditor's Interrogation

A comprehensive introduction to smart contract security audit and preparation of relevant interview questions.

Phase Protocol Audit Report

Phase Protocol is a NFT Marketplace infrastructure built on Solana Protocol, a reliable and scalable L1 solution. The on-chain Fundraising solution offered by DedMonke provides a crowdfunding experience to DeFi users.

Yamato Protocol - Audit Report

Yamato Protocol is a crypto-secured stablecoin generator DApp pegged to JPY. Yamato Protocol is a lending decentralized financial application (DeFi) that can generate Japanese Yen stablecoin "CJPY". It is being developed by DeFiGeek Community Japan, a decentralized autonomous organization.

LEVEL FINANCE - May 2, 2023

The Level Finance hack significantly affected the platform and its users, as the attacker managed to steal $1.1 million in referral rewards. This breach undermined trust in Level Finance and raised concerns about the security of similar DeFi platforms.

SAFEMOON - March 29, 2023

Safemoon suffered an attack in which the SFM/BNB pool was drained, resulting in a loss of $8.9M worth of ‘locked LP’. The attack was carried out by exploiting a vulnerability in the new Safemoon contract that allowed anyone to burn SFM tokens from any address, thus inflating the price of SFM tokens in the pool.

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