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Blockchain Weaknesses

Blockchains Weak Spots Pose A Hidden Danger To Users

Blockchains Weak Spots Pose A Hidden Danger To Users

Blockchains Weak Spots Pose a Hidden Danger to Users An expert who is studying Bitcoin and blockchain technologies says those looking to commercialize them need to be aware of potentially dangerous technical issues. Technologists, entrepreneurs, and some big companies are busy dreaming up new ways of using the core of Bitcoina distributed cryptographic ledger, or blockchainto reinvent everything from business contracts and health records to carbon credits and new trading platforms (see Why Bitcoin Could Be Much More Than a Currency ). However, one expert warns that they may be building their dreams on top of a precarious foundation. Emin Gn Sirer , an associate professor at Cornell University, has been researching ways in which Bitcoin and blockchains can fail. The Bitcoin client is about 30,000lines of code, Gn Sirer said Tuesday at Business of Blockchain , a conference organized by MIT Technology Review and the MIT Media Lab. Its amazing that we havent found as many mission-critical bugs as one would expect, and in fact thats a testament to people who have worked behind the scenes on it. Emin Gn Sirer speaks at the Business of Blockchain conference. Bitcoin is meant to make financial transactions more accountable and secure, without the need for any central authority. The digital currency uses a distributed, cryptographically signed ledger to verify and track transactions. A record of every transfer is stored across many different machines, and the ledger is maintained through a process of mining that generates more bitcoins. Gn Sirer pointed to potential problems with the way blockchains are currently being designed, including the fact that all the clients in most networks run the same code, soone vulnerability can take down the entire system. He noted that in some Continue reading >>

Weaknesses - Bitcoin Wiki

Weaknesses - Bitcoin Wiki

The wallet is stored unencrypted, by default, and thus becomes a valuable target for theft. Recent releases of the Bitcoin client now supports encryption to protect the wallet data, though the user must opt-in. New wallets vulnerable with old passwords via backups An old copy of a wallet with its old password is often easily retrievable via an existing backup facility (particularly Apple Time-Machine): draining that old wallet, with its old password, drains the current wallet with the current password -- this is contrary to most non-technical users expectation of what 'change the password on your wallet' should mean following password compromise. An initial solution is to mandate (either in code or as expressed policy) that changing a wallet's password causes (or asks the user to cause) the creation of a new wallet with new addresses, and the sending of existing sums to them. Backed-up copies of the original wallet with the original password would then be empty, should they be compromised. On the downside, the password-changing process would potentially take much longer, cost a transaction fee or more, and - intially at least - the new wallet is no longer backed up. On the upside, non-technical users won't find their wallets drained from security compromises they believed they had closed, nor be required to locate existing backups of a wallet in order to destroy them. Tracing a coin's history can be used to connect identities to addresses. More info . An attacker can attempt to fill the network with clients controlled by him, you would then be very likely to connect only to attacker nodes. Although Bitcoin never uses a count of nodes for anything completely isolating a node from the honest network can be helpful in the execution of other attacks. This state can be expl Continue reading >>

Don't Believe The Blockchain Hype: Examining The Weaknesses And Risks

Don't Believe The Blockchain Hype: Examining The Weaknesses And Risks

Don't believe the blockchain hype: Examining the weaknesses and risks Blockchain, the platform underlying Bitcoin, is often described as 'inherently secure'. A new report reveals that it's far from ironclad. Few if any technologies have been covered as breathlessly by the media in recent years as blockchain, the underlying platform for the Bitcoin digital currency. Blockchain's adherents -- which include a rapidly growing number of government entities, financial services firms and software startups -- have done little to quell the exuberance, seeing the technology as something that can power new types of applications for identity management, health records and other areas. That's a problem, since in its current state of maturity, blockchain has significant weaknesses and limitations, as Constellation Research VP and principal analyst Steve Wilson writes in an new in-depth report, "Beyond the Hype: Understanding the Weak Links in the Blockchain" : Blockchain was designed specifically for one main goal: preventing the "double spend" of electronic coins, without a central authority. Yet few of the mooted use cases are vulnerable to double spend or anything analogous. At the same time, many important security objectives are not provided by blockchain at all. Thus, blockchain is neither necessary nor sufficient for many of its suggested applications; in practice it's massively over-engineered, or incomplete, or both. Wilson's report provides a detailed history and technical overview of blockchain, and then dives into a discussion of its limitations, which don't get much attention in the general media discussion. For example, the digital ledger blockchain provides is thought to be speedy, and it is compared to inter-bank settlements, Wilson notes: But individual Bitcoin tran Continue reading >>

Blockchain Swot Analysis Archives - Rml Marketing

Blockchain Swot Analysis Archives - Rml Marketing

There is no central authority required to approve transactions or set rules. The database is an immutable and irreversible record. Posts to the Ledger cannot be revised or tampered with not even by the operators of the database. The distributed nature of the network requires computer servers to reach a consensus which allows for transactions to occur between unknown parties. The software is written so that conflicting or double transactions do not become written in the data set and transactions occur automatically. WHAT ARE THE STRENGTHS AND WEAKNESSES OF BLOCKCHAIN? Considering the popularity and potential uses of Blockchain over many sectors and industries, Gartner has developed the following SWOT Analysis WHEN CAN I EXPECT TO SEE BLOCKCHAIN EFFECT MY BUSINESS? According to a Gartner Hype Cycle Graph for emerging technologies , it will take at least 5 to 10 years before Blockchain Technology is widely adopted by mainstream industries. WHERE WILL BLOCKCHAIN TECHNOLOGY MOSTLY BE USED? Cryptocurrencies are a type of alternative and virtual currency that are decentralized and built on Blockchain technology. Bitcoin would be a very popular example of this. These are legally binding programmable digitized contracts entered on the blockchain. Giving computers control over contracts will make business more efficient and the legal system more equitable. All the worlds major banks are currently investing heavily in Blockchain Technology as it offers many advantages, especially in the areas of audit and regulation. By placing all property records on the chain, prospective buyers will be able to immediately verify all requirements including ownership, title, land registry, insurance, etc.. This technology should become incredibly appealing to the healthcare profession as it coul Continue reading >>

Is The Blockchain Broken?

Is The Blockchain Broken?

Competitors are preparing to exploit inherent weaknesses in Blockchain This May, Bitcoins value rocketed by 65 per cent . By the following month, one bitcoin was equal to $2,000. It looked as if the cryptocurrency had finally broken out of the trough of disillusionment into mainstream adoption. However, it became clear that the blockchain based technology had bitten off more than it could chew when Coinbase, the worlds largest crypto exchange, struggled to processthe increasing number of transactions. Ethereums spectacular flash crash of late June added insult to injury, and all of a sudden the blossoming cryptocurrency scene was beginning to wilt. Despite these setbacks, blockchain (largely championed by Bitcoin) is still causing a stir in the financial world. But now that the cracks have started to show, can the technology survive? By now, its clear that Bitcoin has some crippling issues. Low transaction capacity, lack of scalability and slow processing power are just a handful of the structural problems that have limited mass adoption. Its notoriously difficult to regulate, leading to criminal associations that have discouraged official support. And, although Bitcoin is transparent and decentralised by nature, its not entirely fair. Miners can reorder, delay or totally block certain transactions, damaging trust within the system. Recent estimates have also found that Bitcoin has a considerable environmental footprint. This is ironic, given that blockchain has been used to enable peer to peer, renewable energy exchange . According to Alex de Vries, Bitcoin transactions consume as much annual energy as Nigeria. As a result, he dismissed the technology as inefficient by design . So, Bitcoin may be faltering But the concept of public, distributed applications is not. En Continue reading >>

Why Blockchain Is Real And Bitcoin Is A Mirage

Why Blockchain Is Real And Bitcoin Is A Mirage

Why Blockchain Is Real And Bitcoin Is A Mirage {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe In less than a decade, bitcoin has gone from being an obscure curiosity to a household name. Its value has risen -- with ups and downs -- from almost nothing to $16,000 at the time of writing. Bitcoins rise is spectacular. Its price is up almost thirtyfold in the past two years. Currently, the value of Bitcoin in circulation is more than US$170 billion, greater than the market capitalization of McDonalds. This is remarkable because unlike McDonalds, which has stores in almost every corner of the world, Bitcoin as a virtual currency is hardly even transacted in the real world. The rise in Bitcoins value reflects speculation about its future value: This digital currency will have long-term value as long as it is accepted as a medium of exchange and a store of value. The greater its acceptance, the more it will be worth. However, it is difficult for Bitcoin to be accepted as real money. Therefore, the high volatility of its value largely reflects changes in the perceived degree of acceptance. By design, there are inherent weaknesses that prevent Bitcoin from becoming real money. For it to be real money, Bitcoin must be a viable and stable store of value. It is a poor store of value because of its extreme volatility. Bitcoins price is characterized by wild swings, both up and down, with the potential to move more than 20% in a single day. This volatility is almost by construction because Bitcoins supply is relatively fixed Continue reading >>

What Are Blockchains Weaknesses?

What Are Blockchains Weaknesses?

Blockchain Marketing Specialist (/ Subscribe (/ ICON ($42M) / MediBloc ($30M) / BOScoin ($12M) / :0 It needs to be noted that few technologies have been covered by the media, analyzed by the experts and asked about by the community in the recent years as much as the blockchain technology. This technology allows Bitcoin and other cryptocurrencies to be traded. Besides cryptocurrency trading, blockchain allows for making secure, transparent and accessible contracts between users. The need for a third party is no longer necessary. All of these qualities are impressive and unique but keeping in mind that the technology is still young and immature, it has its own weaknesses. Good qualities of blockchain technology lead to some bad qualities. For a settlement on the blockchain, all the nodes in the network must agree that a transaction is valid. This takes a fair bit of time. Even Bitcoin can only process around 7 transactions per second. In comparison, banks do this in a manner of seconds. The exact time needed for a transaction to be verified is unpredictable, but they can take something between ten minutes and an hour. If the funds turn out to be, for example, sent to a wrong address, the only way of returning the transaction is if all the parties included agree to reverse it. This procedure would be easily done using a bank as the middleman but once a transaction goes through a blockchain, funds could be lost forever. This can be prevented by double checking information shared on the blockchain before processing it. Transaction verification is in the hands of individual users called miners who get incentives for their work. Miners wont try to verify as many transactions as they can, they will just try to settle transactions in the fastest, easiest way. Miners can validat Continue reading >>

Pros And Cons Of Blockchain Technology

Pros And Cons Of Blockchain Technology

Friday, 24 November 2017 / Published in Blockchain , Global Themes and Feature Topics This article will discuss about pros and cons of blockchain technology that we need to understand. Here also, we highlighted the biggest pro and cons or advantages and disadvantages of blockchain. The core value of a blockchain is that it enables a database to be directly shared without a central administrator. Rather than having some centralized application logic, blockchain transactions have their own proof of validity and authorization to enforce the constraints. Hence, with the blockchain acting as a consensus mechanism to ensure the nodes stay in sync, transactions can be verified and processed independently. But why is disintermediation good for us? Because a database is still a tangible thing even though is just bits and bytes. If the contents of a database are stored in the memory and disk of a particular computer system run by a third party even if it is a trusted organization like banks and governments, anyone who somehow got access to that system can easily corrupt the data within. Thus the third-party organizations especially those who control important databases need to hire many people and design many processes to prevent that database being tampered with. Unavoidably, all this takes a great amount of time and money. However, with blockchains, we can now replace these third-party organizations with a distributed database, locked down by clever cryptography. Like so much that has come before, they leverage the ever-increasing capacity of computer systems to provide a new way of replacing humans with code. And once its been written and debugged, code tends to be an awful lot cheaper (Gideon Greenspan). Users are in control of all their information and transaction. Blockcha Continue reading >>

Ardor Could Fix Key Blockchain Weaknesses If It Can Get Its Message Out

Ardor Could Fix Key Blockchain Weaknesses If It Can Get Its Message Out

In 2013, Jelurida , the team behind open source blockchain platform NXT , ran the second ever ICO. Although not a very successful token sale, raising a mere $6,000, the small team managed to build and launch NXT, which has since become a stable blockchain with a large variety of features. However, aside from a couple of noteworthy names using NXT European bank BNP Paribas and Accenture Spain the platform hasnt seen the adoption Jelurida had hoped for. Still, the technology behind NXT is solid and Jelurida has gained valuable experience from running the platform in production for four years thats a long time in blockchain years. And while the team will continue to support the NXT blockchain and software for years to come, it is about to launch its new platform, Ardor , and most of its development resources are now going into this. Ardor, the successor to NXT will go live later this year and will introduce some promising new ideas that deserve the attention of both investors and other blockchain companies looking for the right platform for their project. In fact, if Jelurida had some of Ethereums marketing capabilities, or a strong personality as their voice, Ardors child chain capabilities (which Ill get to in a moment) would be all over the news. (Disclosure: I have no vested interests in Jelurida, NXT, or Ardor). Ardor uses a Proof-of-stake (PoS) consensus mechanism (NXT was the first blockchain to fully implement this), which Ethereum is also planning a switch to in a future update, moving away from its current Proof-of-work (PoW) system. With PoS there is no resource-heavy mining involved. Instead coins are forged, or minted, making it much more cost effective than PoW. In light of Chinas recent ban on crypto exchanges, and maybe also on mining operations in the nea Continue reading >>

What Are Blockchain's Issues And Limitations?

What Are Blockchain's Issues And Limitations?

What are Blockchain's Issues and Limitations? There are treacherous passes in any technological revolution. Some people in the blockchain industry have pointed outthat blockchain has become overhyped, when, in reality, the technology has limitations and is inappropriate for many digital interactions. But through research and development, success and failure, and trial and error, we've learned the currentissues and limitations of blockchains. Blockchain technology involves an entirely new vocabulary. It has made cryptography more mainstream, but the highly specialized industry is chock-full of jargon. Thankfully, there are several efforts at providing glossaries and indexes that are thorough and easy to understand. Blockchains (like all distributed systems) are not so much resistant to bad actors as they are 'antifragile' that is, they respond to attacks and grow stronger. This requires a large network of users, however. If a blockchain is not a robust network with a widely distributed grid of nodes, it becomes more difficult to reapthe full benefit. There is some discussion and debate about whether this a fatal flaw for some permissioned blockchain projects. Bitcoin currently has notable transaction costs after being toutedas near free for the first few years of its existence. As of late 2016, it can only process about seven transactions per second, and each transaction costs about $0.20 and can only store 80 bytes of data. Theres also the politically charged aspect of using the bitcoin blockchain, not fortransactions, but as a store of information. This is the question of 'bloating' and is often frowned upon because it forces miners to perpetually reprocess and rerecord the information. If a blockchain is used as a database, the information going into the database nee Continue reading >>

An Analysis Of The Opportunities And Threats In Blockchain Technology

An Analysis Of The Opportunities And Threats In Blockchain Technology

An Analysis of the Opportunities and Threats in Blockchain Technology Blockchain technology continues to be one of the most exciting emerging technologies in the world today. individuals, developers, corporations and even governments are trying to develop means to use this revolutionary new technology in advancing their processes. Many experts have come out to say that blockchains hold the key to the actualization of a number of important technological breakthroughs. Within the haze of excitement and optimism, the core of the discourse surrounding blockchain tends to center on strengths and weaknesses of the technology. Everyone knows that in order to complete a SWOT analysis, the opportunities and threats must also be looked at. The potential opportunities of blockchain technology will be examined in this article under three broad categories as follows: The first recognizable niche that comes to mind when the blockchain is mentioned is commerce. The first ever successful implementation of the blockchain framework resulted in Bitcoin, a payment processing architecture. This, and the fact that the majority of the blockchain applications that have been launched since then have been focused on cryptocurrencies has led some to believe that crypto is all there is to blockchains. The entire framework of global commerce presents a veritable opportunity for blockchain implementation. Blockchain technology can be applied to almost every aspect of commerce. One of the most valuable opportunity for blockchain adoption in commerce is the area of cross-border transactions. The current framework for cross-border transactions is one that involves a number of processes and checks that slow down the transactions and even make them quite expensive. Blockchain technology has the potentia Continue reading >>

Blockchain: So Much Bigger Than Bitcoin

Blockchain: So Much Bigger Than Bitcoin

From voting to healthcare, music to energy production, blockchain may just change the way we run our lives Last modified on Wed 21 Mar 2018 19.48EDT Farewell electoral fraud? A blockchain-based system may ensure security, transparency and accuracy in voting.Photograph: Michael D/Pacific/BarcroftImages A blockchain allows the authentication of transactions without them needing to be administered or guaranteed by a central authority. Ballot boxes and current online voting platforms are vulnerable to manipulation; now a startup called Follow My Vote is developing a blockchain-based system to ensure security, transparency andmathematically accurate election results. Up on the roof: solar panels in Park Slope, Brooklyn. Photograph: Clinton Nguyen Applied to power generation, blockchain enables homeowners to sell back energy to the grid without going via an energy provider or manage their own microgrids that are independent from the established system. Lo3Energy runs a project in Brooklyn, New York, where homeowners can buy and sell energy they have generated with rooftop solar panels. The blockchain allows them to set their own price andto do so without a price-setting, commission-taking intermediary. Definition of sound: blockchain could give control and 100% of revenue back to recording artists. Photograph: Paul Bradbury/Getty Images/Caiaimage Just got the hang of Spotify? Prepare to have your listening habits disrupted again by blockchain-based music streaming services. Instead of a service such as Apple Music or Spotify taking a cut, a blockchain system called Voise is enabling artists to set a price of which they receive 100% whena user streams their music. Goodbye to all that: the keeping and sharing of medical records may soon be revolutionised. Photograph: Alamy A p Continue reading >>

Six Main Disadvantages Of Bitcoin And The Blockchain Kaspersky Lab Official Blog

Six Main Disadvantages Of Bitcoin And The Blockchain Kaspersky Lab Official Blog

Blockchain: so cool, what a breakthrough soon almost everything will be based on blockchain technology. If you bought all of that, then I might just disappoint you. This article will discuss the version of blockchain technology that is used for Bitcoin cryptocurrency. There are other implementations, and they may have eliminated some of the disadvantages of the classic blockchain, but usually everything is built around the same principles. I consider the Bitcoin technology itself revolutionary. Unfortunately, Bitcoin has been used for criminal activities far too often, and as an information security specialist, I strongly dislike that practice. Yet, technologically speaking, Bitcoin is an obvious breakthrough. The Bitcoin protocol components and built-in ideas arent new; generally, they were all known before 2009, but only the authors of Bitcoin managed to piece them together to make it work back in 2009. Since then, for almost nine years, only one critical vulnerability has been found in its implementation, when one malefactor snagged 92 billion bitcoins. Fixing that required rolling back the entire financial record by 24 hours. Nevertheless, just one vulnerability in nine years is praiseworthy. Hats off to the creators. The authors of Bitcoin faced the challenge of making it all work with no central system and no one trusting anyone else. The creators rose to the challenge and made electronic money an operational currency. Nevertheless, some of their decisions were devastating in their ineffectiveness. I am not here to discredit blockchain, a useful technology that has shown many remarkable uses. Despite its disadvantages, it has unique advantages as well. However, in the pursuit of the sensational and revolutionary, many people concentrate on the upsides of the tech Continue reading >>

Blockchain Advantage And Disadvantages

Blockchain Advantage And Disadvantages

Founder/CEO @nudjed, SXSWi Winner, chats stuff about health tech and startup life Attempting to explain the advantages and disadvantages of blockchain technology, in its current format, for developing solutions. Over the last 6 months, weve been attempting to pull apart blockchain, from concept, to economics. This article is designed to record some of our thoughts about blockchain and why its useful, or not. If we have something wrong, inaccurate or out of date, let us know in the comments! Every disadvantage has its advantage JohanCruyff The key advantages that Blockchain offers are: Blockchain allows a wide variety of computers to take part in a network, disturbing the computing power. For example, Amazon buys and maintains a private set of computing power for AWS, no-one but Amazon can contribute this. In contrast the blockchain organisation Ethereum allows almost anyone to contribute their computer to their network, simply by installing their software. Distribution helps to reduce risk in tampering, fraud and cyber crime. With more nodes able to take part, systems are very hard to take down via traditional brute force network attacks. Blockchain allows digital transactions to happen between parties who do not trust each other. Imagine a digital coin stored in a file on your computer. You may copy and paste the file an infinite number of times. The value of this digital currency would close to zero. In the past, central authorities (banks) have acted as ledgers, keeping records of the number of coins each of us has available as a centralised Ledger, to avoid the problem of duplication. By distributing the Ledger to many Nodes, and synchronising this Ledger via Consensus, blockchain allows parties who dont trust each other, to believe that the transaction is real and Continue reading >>

The Truth About Blockchain

The Truth About Blockchain

Contracts, transactions, and records of them provide critical structure in our economic system, but they havent kept up with the worlds digital transformation. Theyre like rush-hour gridlock trapping a Formula 1 race car. Blockchain promises to solve this problem. The technology behind bitcoin, blockchain is an open, distributed ledger that records transactions safely, permanently, and very efficiently. For instance, while the transfer of a share of stock can now take up to a week, with blockchain it could happen in seconds. Blockchain could slash the cost of transactions and eliminate intermediaries like lawyers and bankers, and that could transform the economy. But, like the adoption of more internet technologies, blockchains adoption will require broad coordination and will take years. In this article the authors describe the path that blockchain is likely to follow and explain how firms should think about investments in it. Weve all heard that blockchain will revolutionize business, but its going to take a lot longer than many people claim. Like TCP/IP (on which the internet was built), blockchain is a foundational technology that will require broad coordination. The level of complexitytechnological, regulatory, and socialwill be unprecedented. The adoption of TCP/IP suggests blockchain will follow a fairly predictable path. While the journey will take years, its not too early for businesses to start planning. Contracts, transactions, and the records of them are among the defining structures in our economic, legal, and political systems. They protect assets and set organizational boundaries. They establish and verify identities and chronicle events. They govern interactions among nations, organizations, communities, and individuals. They guide managerial and social Continue reading >>

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