Cryptocurrencies are on the increase, with at least 100 active, suitably valuated cryptocurrencies being used as tender. However, as some cryptocurrencies have discovered, they are not completely infallible, writes SAURABH KUMAR, CEO of In2IT Tech.
The benefit of Bitcoin, and other virtual digital cryptocurrencies, lies in their anonymity, and with blockchain-based technologies, they are typically thought to be incredibly secure as well. However, as some cryptocurrencies have discovered, they are not completely infallible – and this is doing some damage to the blockchain’s reputation.
What makes the blockchain so secure?
“Normal” transactions, using traditional currency, require a verification process between two parties, typically institutions such as banks or the Reserve Bank. Blockchain based transactions are no different, however the verification process is decentralised and spread across multiple verification points, or nodes. No single party controls any or all aspects of the transaction and verification takes place based on consensus.
Due to the sheer number of nodes that need to verify and approve a transaction, it is incredibly difficult to hack, breach or otherwise intercept a transaction on the blockchain. This has resulted in financial institutions across the globe exploring the blockchain’s potential in other applications.
So why the concern?
Recent hacks that have led to losses of millions of dollars’ worth of cryptocurrency, have stirred up uncertainty within businesses who are exploring the blockchain for trading requirements as well as other areas of business.
In May 2016, the DAO (Decentralised Autonomous Organisation) was launched, and hacked. This project uses cryptocurrency platform Ethereum to crowd fund a decentralised venture capital fund. $70 million dollars in Ether (Ethereum currency) was stolen. At the end of July 2016, Bitfinex, a cryptocurrency exchange, experienced a serious breach resulting in the theft of 120 000 bitcoins. Also in July 2016, Steemit, a blockchain-based blogging platform, was hacked. This hack resulted in the loss of approximately $85 000 in cryptocurrency. Other cryptocurrency platforms to fall victim to hacks include Krypton and Shift, two Ethereum-based blockchains.
While hacking, or otherwise breaching and intercepting, the blockchain is incredibly difficult, these examples show us that it is not impermeable. Companies need to bear in mind that cryptocurrency – successfully implemented in the blockchain – is still a relatively new technology and, as with any less-than-fully-mature technology, its flaws are yet to be fully realised.
That doesn’t mean that the technology should be discarded or that blockchain investments should be abandoned. Indeed, it is only through continued exploration and ongoing use that one will discover the weaknesses in the blockchain’s armour – and make it stronger than ever.
Addressing the flaws, as they stand
One of the inherent flaws of cryptocurrency lies not with the transactional phase, which takes place on the blockchain, but with its storage. The actual transaction is incredibly secure but, once the transaction has occurred, the parties need to store their cryptocurrency. In a world where everything is connected and touches the Web, storage systems for cryptocurrencies are no different – and are, therefore, accessible by determined cybercriminals. Many large organisations are addressing this by revisiting a siloed approach to storage, using cold storage that is completely cut off from the Internet
Broad-level security on either side is also a concern. Again, while the actual transaction may be secure, the end points might not be. It is possible to intercept the transfer or receipt of cryptocurrencies at either end of the transaction, so trust between parties remains of paramount importance. To respond to this, businesses are looking at private blockchains and not public ones. Private blockchains require a more interpersonal level of transaction and all nodes are known, and pre-approved prior to transacting.
Finally, because the technology resides on underlying networks, the networking design needs to be well thought out and planned with security as top-of-mind. Security must form part of the initial architecture, catering for all manner of current and potential threats so as to minimise any risk of breach through touchpoints on the network.
The future of the blockchain
There are exciting times ahead, for both the future of cryptocurrencies and the blockchain. The world consists of a series of transactions and exchanges, and the blockchain can be applied to virtually every single use case, with careful planning and consideration.
With care and foresight – and an in depth knowledge of the current security landscape of the blockchain – businesses can leverage this technology in a safe, secure and successful fashion, enabling a world of possibilities.
Earth 2050: memory chips for kids, telepathy for adults
An astonishing set of predictions for the next 30 years includes a major challenge to the privacy of our thoughts.
Buy 2050, most kids may be fitted with the latest memory boosting implants, and adults will have replaced mobile devices with direct connectivity through brain implants, powered by thought.
These are some of the more dramatic forecasts in Earth 2050, an award-winning, interactive multimedia project that accumulates predictions about social and technological developments for the upcoming 30 years. The aim is to identify global challenges for humanity and possible ways of solving these challenges. The website was launched in 2017 to mark Kaspersky Lab’s 20th birthday. It comprises a rich variety of predictions and future scenarios, covering a wide range of topics.
Recently a number of new contributions have been added to the site. Among them Lord Martin Rees, the UK’s Astronomer Royal, Professor at Cambridge University and former President of the Royal Society; investor and entrepreneur Steven Hoffman, Peter Tatchell, human rights campaigner, along withDmitry Galov, security researcher and Alexey Malanov, malware analyst at Kaspersky Lab.
The new visions for 2050 consider, among other things:
- The replacement of mobile devices with direct connectivity through brain implants, powered by thought – able to upload skills and knowledge in return – and the impact of this on individual consciousness and privacy of thought.
- The ability to transform all life at the genetic level through gene editing.
- The potential impact of mistakes made by advanced machine-learning systems/AI.
- The demise of current political systems and the rise of ‘citizen governments’, where ordinary people are co-opted to approve legislation.
- The end of the techno-industrial age as the world runs out of fossil fuels, leading to economic and environmental devastation.
- The end of industrial-scale meat production, as most people become vegan and meat is cultured from biopsies taken from living, outdoor reared livestock.
The hypothetical prediction for 2050 from Dmitry Galov, security researcher at Kaspersky Lab is as follows: “By 2050, our knowledge of how the brain works, and our ability to enhance or repair it is so advanced that being able to remember everything and learn new things at an outrageous speed has become commonplace. Most kids are fitted with the latest memory boosting implants to support their learning and this makes education easier than it has ever been.
“Brain damage as a result of head injury is easily repaired; memory loss is no longer a medical condition, and people suffering from mental illnesses, such as depression, are quickly cured. The technologies that underpin this have existed in some form since the late 2010s. Memory implants are in fact a natural progression from the connected deep brain stimulation implants of 2018.
“But every technology has another side – a dark side. In 2050, the medical, social and economic impact of memory boosting implants are significant, but they are also vulnerable to exploitation and cyber-abuse. New threats that have appeared in the last decade include the mass manipulation of groups through implanted or erased memories of political events or conflicts, and even the creation of ‘human botnets’.
“These botnets connect people’s brains into a network of agents controlled and operated by cybercriminals, without the knowledge of the victims themselves. Repurposed cyberthreats from previous decades are targeting the memories of world leaders for cyber-espionage, as well as those of celebrities, ordinary people and businesses with the aim of memory theft, deletion of or ‘locking’ of memories (for example, in return for a ransom).
“This landscape is only possible because, in the late 2010s when the technologies began to evolve, the potential future security vulnerabilities were not considered a priority, and the various players: healthcare, security, policy makers and more, didn’t come together to understand and address future risks.”
For more information and the full suite of inspirational and thought-provoking predictions, visit Earth 2050.
Pizoelectrics: Healthcare’s new gymnasts of gadgetry
Healthcare electronics is rapidly deploying for wellness, electroceuticals, and intrusive medical procedures, among other, powered by new technologies. Much of it is trending to diagnostics and treatment on the move, and removing the need for the patient to perform procedures on time.
Instruments become wearables, including electronic skin patches and implants. The IDTechEx Research report, “Piezoelectric Harvesting and Sensing for Healthcare 2019-2029”, notes that sensors should preferably be self-powered, non-poisonous even on disposal, and many need to be biocompatible and even biodegradable.
We need to detect biology, vibration, force, acceleration, stress and linear movement and do imaging. Devices must reject bacteria and be useful in wearables and Internet of Things nodes. Preferably we must move to one device performing multiple tasks.
So is there a gymnast material category that has that awesome versatility?
Piezoelectrics has a good claim. It measures all those parameters. That even includes biosensors where the piezo senses the swelling of a biomolecule recognizing a target analyte. The most important form of self-powered (one material, two functions) piezo sensing is ultrasound imaging, a market growing at 5.1% yearly.
The IDTechEx Research report looks at what comes next, based on global travel and interviewing by its PhD level analysts in 2018 with continuous updates.
Click here to read how Piezo has been reinvented.