Threats of the Crypto Universe

Hi there!

This is crypto universe oversimplified!

Don't forget to check out the previous one:

https://medium.com/coinmonks/the-fourth-dimension-of-the-crypto-universe-f4f3a5d1718e

Today, we are talking about threats of the Crypto Universe.

There are two threats of Crypto: external and internal. In addition, there are two layers of security build-in for each cryptocurrency: cryptographic techniques (wallet with pair of keys) and consensus mechanisms (blockchain). 

External Threat

Hackers bring external threats. Not all hackers are evil, but some are.

Why can hackers steal from the Crypto Universe? The goals hackers want to achieve are:

• To gain access to your crypto wallet

• Attacking the blockchain

• Attacking the smart contract

To gain access to your crypto wallet, they will steal your private key from your devices, online application, or even Crypto exchange platform.

To attack the blockchain, hackers can launch a Dusting Attack to overwhelm the blockchain through massive fraction transactions purposely or as a way to spam the network, similar to distributed denial-of-service (DDoS) attack.

Hackers will find loopholes in the programmed contracts to attack (modify) smart contracts and drain funds before they reach the blockchain. There are many known and unknown methods of the attack, impacting many decentralized projects, particularly in the Defi field.

Internal Threat

There are also internal threats that happen within the organization. 

To attack the Crypto internally, attackers need to dominate 51% of the network control or computational power as a 51% attack.

However, you do not need to control 51% of computational power to rug-pull people. 

As long as you have control of the protocol, you can manipulate it in your favor through smart contracts.

Another threat is a single point of failure. It is an irreversible collapse of the cryptocurrency. It usually occurs in a centralized organization with corrupted leadership. It costs the future of the Crypto to grow and become sustainable. Decentralization is a way to prevent such an event's collapse.

https://media.giphy.com/media/RSRcMj0Bk1gCwIm4MG/giphy-downsized-large.gif

In conclusion

They are more threats to danger the Crypto Universe. 

Thanks for reading!

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