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Introducing Blockchain Security and Attack Vectors

In this chapter, we will introduce the fundamental constitutive elements of blockchain technology, such as distributed ledger, peer-to-peer network topology, and consensus algorithms, all of which will be further explored in depth in the chapters that follow.

These notions are essential to fully understand the aspects of cyber security associated with blockchain technology, especially with regard to identifying possible attack vectors.

In particular, we will cover the following topics in this chapter:

An introduction to blockchain
The building blocks of blockchain
Blockchain network topology
Establishing trust through consensus algorithms
Potential threats that affect trust

Key benefits

Explore blockchain concepts such as cryptography, consensus algorithms, and security assumptions

Architect network security for mission-critical decentralized apps (Dapps) using design security considerations

Consider various deployment and operational aspects while building a blockchain network

Description

Blockchain adoption has extended from niche research to everyday usage. However, despite the blockchain revolution, one of the key challenges faced in blockchain development is maintaining security, and this book will demonstrate the techniques for doing this. You’ll start with blockchain basics and explore various blockchain attacks on user wallets, and denial of service and pool mining attacks. Next, you’ll learn cryptography concepts, consensus algorithms in blockchain security, and design principles while understanding and deploying security implementation guidelines. You’ll not only cover architectural considerations, but also work on system and network security and operational configurations for your Ethereum and Hyperledger Fabric network. You’ll later implement security at each level of blockchain app development, understanding how to secure various phases of a blockchain app using an example-based approach. You’ll gradually learn to securely implement and develop decentralized apps, and follow deployment best practices. Finally, you’ll explore the architectural components of Hyperledger Fabric, and how they can be configured to build secure private blockchain networks. By the end of this book, you’ll have learned blockchain security concepts and techniques that you can implement in real blockchain production environments.

What you will learn

Understand blockchain consensus algorithms and security assumptions Design secure distributed applications and smart contracts Understand how blockchains manage transactions and help to protect wallets and private keys Prevent potential security threats that can affect distributed ledger technologies (DLTs) and blockchains Use pentesting tools for assessing potential flaws in Dapps and smart contracts Assess privacy compliance issues and manage sensitive data with blockchain

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