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CCEG SOCIAL VALUE & INTANGIBLES REVIEW If the Bitcoin and Ethereum are using the Blockchain how was it possible they were hacked? Blockchain technology cannot be hacked (no single miner can alter the production and distribution of hash) – if implemented with proper security mechanisms in place. The 256 Bit SHA Hash or SHA-256 is irreversible; i.e., it can only be mathematically computed/solved in one way and the reverse computation is not feasible. The Blockchain technology uses SHA256 bit hash. The Bitcoin Stock exchange was hacked due to inherited weakness in the internet-linked computer terminals, an untrusted third party and compromised email passwords. This was a brilliant example of a ‘Social Engineering’ attack. The history of ‘proof-of-work’ to record the hash in a Public Blockchain with optimum trusted nodes makes it impractical for a hacker to control mining power and Blockchain technology. Ethereum was hacked due to the presence of security vulnerability or exploitations in the code. The Ethereum Contract was vulnerable to double spending; i.e. the contract checks the drawn balance and spends it. This results in a

can be verified by using Blockchain technology because it protects the integrity of data without keeping secrets to verify whether such data is correct. Information Technology systems can be independently verified without having to trust the administrators of the system. Blockchain technology can provide a decentralized cyber security system – this can prevent DDoS attacks on major banks, organizations and it can even guarantee immunity to DNS (Domain Name Servers). P2P distribution of small bits of data over decentralized networks will prevent data theft. Blockchain technology can even capture logs of hacking attempts. Illustration: a server will be assigned an ‘identity log’ to log a device’s identity/ name, what was accessed, who accessed it, what was updated, recode the timestamp, and automate alerts about cyber security best practice measures. A single man or woman can be socially engineered but a distributed decentralized P2P public or private ledger (sequential hashing and cryptography) through Blockchain cannot be hacked or socially engineered.

double spending effect, meaning when the ledger is updated it will highlight the balance as ‘zero’. Integrity of Security patches, firmware updates, hardware devices, IoT devices, industrial control systems, natural disaster alert systems, power supply and gas distribution infrastructures can be verified and validated through private Blockchains. The hash records of these can be made available to the public and can be verified in a public ledger.

As this technology advances it can be made stronger through quantum computing powers, encryption and cryptography. “Blockchain and security is a balancing act.” Twitter: @genius999 Email Id: dr.prakashprasad@gmail.com

Even electronic records, legal documents, banking and financial records, anti-virus signatures, clinical trials and medical records (guaranteed privacy and autonomous control using blockchain) databases, copyrighted materials and software, music and books can be validated, authenticated and compared for originality. Logistics and supply chains, tracking and tracing of cyber-attacks, real-time awareness and detection of any misconfigurations in banking systems, businesses and government systems, component failures or data tampering

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February 2017

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Social Value and Intangibles Review February 2017  

CCEG Social Value & Intangibles Review (SVIR) – February 2017 Centre for Citizenship, Enterprise and Governance journal on Social Impact and...

Social Value and Intangibles Review February 2017  

CCEG Social Value & Intangibles Review (SVIR) – February 2017 Centre for Citizenship, Enterprise and Governance journal on Social Impact and...

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