What are the risks of blockchain

1.

One of the characteristics of blockchain projects (especially public chains) is open source. Through open source code, to improve the credibility of the project, so that more people can participate. But the open source code also makes it easier for attackers to attack blockchain system. In the past two years, there have been a number of hacker attacks. Recently, the anonymous currency verge (xvg) was attacked again. The attacker locked a vulnerability in the xvg code, which allowed malicious miners to add false timestamps on the block, and then quickly dig out new blocks. In a few hours, the attacker obtained nearly $1.75 million worth of digital currency. Although the subsequent attack was successfully stopped, no one can guarantee whether the attacker will attack again in the future

of course, blockchain developers can also take some measures

one is to use professional code audit services,

the other is to understand the security coding specifications and take preventive measures

the security of cryptographic algorithm

with the development of quantum computer, it will bring a major security threat to the current cryptosystem. Blockchain mainly relies on elliptic curve public key encryption algorithm to generate digital signature for secure transactions. Currently, the most commonly used ECDSA, RSA, DSA, etc. can not withstand quantum attacks in theory, and there will be greater risks. More and more researchers begin to pay attention to cryptographic algorithms that can resist quantum attacks

of course, in addition to changing the algorithm, there is another way to improve the security:

refer to bitcoin's treatment of public key address to rece the potential risk of public key disclosure. As users, especially bitcoin users, the balance after each transaction is stored in a new address to ensure that the public key of the address where bitcoin funds are stored is not leaked

security of consensus mechanism

the current consensus mechanisms include proof of work (POW), proof of stake (POS), delegated proof of stake (dpos), practical Byzantine fault tolerance (pbft), etc

POW faces 51% attack. Because POW depends on computing power, when the attacker has the advantage of computing power, the probability of finding a new block will be greater than that of other nodes. At this time, the attacker has the ability to cancel the existing transaction. It should be noted that even in this case, the attacker can only modify his own transaction, but not the transaction of other users (the attacker does not have the private key of other users)

in POS, attackers can attack successfully only when they hold more than 51% token, which is more difficult than 51% computing power in pow

in pbft, when the malicious nodes are less than 1 / 3 of the total nodes, the system is secure. Generally speaking, any consensus mechanism has its own conditions. As an attacker, we also need to consider that once the attack is successful, the value of the system will return to zero. At this time, the attacker does not get any other valuable return except destruction

for the designers of blockchain projects, they should understand the advantages and disadvantages of each consensus mechanism, so as to select an appropriate consensus mechanism or design a new consensus mechanism according to the needs of the scene

security of smart contract

smart contract has the advantages of low operation cost and low risk of human intervention, but if there are problems in the design of smart contract, it may bring greater losses. In June 2016, the Dao, the most popular funding project of Ethereum, was attacked. The hacker obtained more than 3.5 million Ethereum coins, which later led to the bifurcation of Ethereum into Eth and etc

there are two aspects of the proposed measures:

one is to audit the security of smart contract, and the other is to follow the principle of smart contract security development

the security development principles of smart contract are: to be prepared for possible errors, to ensure that the code can correctly handle the bugs and vulnerabilities; Release smart contracts carefully, do well in function test and security test, and fully consider the boundary; Keep smart contracts simple; Pay attention to the threat intelligence of blockchain and check and update in time; Be clear about the characteristics of blockchain, such as calling external contracts carefully

security of digital wallet

there are three main security risks in digital wallet: first, design defects. At the end of 2014, a user lost hundreds of digital assets e to a serious random number problem (repeated r value). Second, the digital wallet contains malicious code. Third, the loss of assets caused by the loss or damage of computers and mobile phones

there are four main countermeasures:

one is to ensure the randomness of the private key

The second is to check the hash value before installing the software to ensure that the digital wallet software has not been tampered with

The third is to use cold wallet

The fourth is to back up the private key

2. Digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy
digital currency is a kind of unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form
according to the notice on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China. According to China's digital currency regulatory framework, investors have the freedom to participate in digital currency transactions at their own risk

warm tips: the above information is for reference only. Before investing, it is recommended that you first understand the risks existing in the project, and understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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3.

Although driven by the influx of capital and talents, the blockchain instry ushered in rapid development, but as an emerging instry, the frequent warning of its security vulnerabilities caused people to worry about the risk of blockchain

Yu Kequn, director of the national information technology security research center, pointed out that the emergence of blockchain has brought people a lot of expectations for privacy exposure, data leakage, information tampering, network fraud and other issues. However, there are still many challenges in the security of blockchain

Li Bin, assistant director of China Information Security Evaluation Center, analyzed that the current blockchain is divided into three types: public chain, private chain and alliance chain. No matter which type, it faces security challenges in algorithm, protocol, use, time limit and system. What is particularly critical is that the current blockchain is still facing 51% attack problem, that is, nodes can successfully tamper and forge blockchain data by mastering more than 51% of the network examples

it is worth noting that in addition to external malicious attack risk, blockchain also faces the threat of its endogenous risk. Yu Kequn reminded that how to build a complete security application system around the equipment, data, application, encryption, authentication and authority of the application system of the whole blockchain is an important problem that all parties must face

Wu Jia also analyzed that as an emerging instry, employees in the blockchain instry are lack of safety awareness, which leads to the low safety factor of the software and hardware related to the blockchain and a large number of security loopholes. In addition, there are many ecological links in the whole blockchain. In contrast, the strength of the relevant security employees is scattered and it is difficult to form a joint force to solve the problem. A systematic solution is needed to meet the above challenges

content source: zhongxin.com

4. There must be risks, and they are high risks, because high returns are always bound with high risks. You are a little rookie who doesn't know anything. Can you make money like other people's old birds? If you are just interested in the coin circle, I suggest you don't be reluctant to spend a small amount of money to add a pay circle of the coin circle. For example, the group of Li Xiaolai, the big money in the coin circle, once cost as much as 5 million yuan. There are also some old cats and baoerye groups, but they are too far away from us ordinary people. But if you have a lot of money, it's a good deal. If it's only tens of thousands, it's suggested to add some groups with high cost performance, such as the payment group of fire chain blockchain, Zhongshen blockchain club, which are reliable, and there is a free trial period.

5. Forget the private key, the mnemonic note lost... This is the most basic. When it comes to the essence of investment, it is the investment risk caused by the fluctuation of currency price. GRE global risk trading all specialized insurance can be bought to avoid the risk of digital money market.

6. How much risk you can take and how much you will get in return. Just like in troubled times, people who rise up may fall to the ground or become the next emperor. The question is, do you dare@ Block chain God Tucao: make complaints about investment risks correctly.

7. Yes, blockchain is a high-risk project.

8. First, the risk of absconding with funds, the lack of audit and custody of the assets raised. Now a standard ICO is like this: it will issue a white paper, let's have a look, and then it will be over as soon as it is implemented. There are still many potential rules. For example, in the past few years, there were many cases where an ICO project came out and everyone invested in it, and then it disappeared. So far, it is still in this state. So there is still the risk of project proposer absconding with money< Second, the risk of over commitment. The traditional IPO is that the company should do well, and I'll sell it again, and everyone can see clearly. And ICO is for me to write a few pages, say what I plan to do and what functions I want to achieve, and then everyone will give me the money. Whether it can be realized well or not is a question mark
thirdly, there is a risk of overvaluation. At present, there is no detailed or convincing pricing mechanism. It is more likely that the project initiator will proce a pricing based on the needs of the project development or his own understanding, which may lead to the so-called stage high investment< Fourthly, investors are too optimistic. Investors may see more space for future ICO projects, but in fact, from a slightly long-term point of view, there can be no sustained huge profits
fifthly, it is difficult for investors to control the stock risk of the project. After the completion of the project, there is often a certain development cycle in the follow-up. How to develop the project and how to promote it. Few ICO projects have clear plans for future development. This means that investors can't control what they can do after they invest their money.

9. Pishon platform is OK. It is the world's first superconcting mechanism. It's decentralized, smart contract, chain execution, full open data, fair, just, open and transparent. It's the world's first mechanism based on wave field development.