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Tokens
Blockchain Crypto cryptocurrency Decentralized Digital Assets digital currency Fintech NFTs Smart Contracts Technology Tokens

The United States is Monitoring Vulnerabilities in Bitcoin

 

The United States has shown a keen interest in the cybersecurity aspects of Bitcoin, particularly honing in on a vulnerability associated with the Ordinals Protocol in 2022. The National Vulnerability Database (NVD), overseen by the National Institute of Standards and Technology (NIST), a branch of the U.S. Department of Commerce, has brought attention to this issue for public awareness. This underscores the growing focus of government agencies on the security dimensions of cryptocurrencies.

The vulnerability at the core of this development is specific to certain versions of Bitcoin Core and Bitcoin Knots. It enables the bypassing of the datacarrier limit by disguising data as code. In practical terms, this vulnerability could result in the Bitcoin network being inundated with non-transactional data, potentially causing congestion in the blockchain and affecting performance and transaction fees. This concern is not merely theoretical, as evidenced by the exploitation of the Ordinals inscriptions in 2022 and 2023.

The Ordinals gained prominence in late 2022, involving the embedding of additional data onto a satoshi, the smallest Bitcoin unit, similar to the concept of nonfungible tokens (NFTs) on the Ethereum network. However, the increased usage of Ordinals transactions has led to heightened network congestion, resulting in elevated transaction fees and slower processing times. For blockchain enthusiasts, these issues are not just technical glitches but critical challenges that could influence the future trajectory of Bitcoin.

Luke Dashjr, a Bitcoin Core developer, has been outspoken about this vulnerability, likening it to receiving a flood of junk mail that obstructs essential communications. This metaphor aptly encapsulates the essence of the vulnerability, disrupting the otherwise streamlined process of Bitcoin transactions.

In response to these concerns, a patch has been developed in Bitcoin Knots v25.1. However, Dashjr notes that Bitcoin Core remains vulnerable in its upcoming v26 release. He expresses hope that the issue will be addressed in the v27 release next year. The implications of this vulnerability and its subsequent patching are substantial. Rectifying the bug could limit Ordinals inscriptions, although existing inscriptions would persist due to the immutable nature of the network.

This situation underscores a broader theme in the cryptocurrency world: the constant evolution and the need for vigilance in maintaining network security. The involvement of U.S. federal agencies in tracking and cataloging these vulnerabilities may signify a step toward more robust and secure blockchain technologies. While the identification of Bitcoin's vulnerability by the NVD serves as a cautionary tale, it also presents an opportunity for growth and improvement in the cryptocurrency ecosystem.
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Technology
Argentina Blockchain Blockchain Security Crypto Crypto Keys Cyber Security Decentralized Identity Theft Sensitive Information Technology

Argentina's Blockchain-based IDs are Transforming Governance

Argentina's capital, Buenos Aires, is making waves in the realm of digital governance. The city has taken a bold step forward by implementing blockchain technology to issue government IDs. This move represents a significant leap towards secure, efficient, and transparent identification processes.

Traditionally, government-issued identification documents have been vulnerable to fraud, identity theft, and bureaucratic inefficiencies. However, by leveraging blockchain, Buenos Aires aims to address these challenges head-on. The technology offers a decentralized, tamper-proof ledger where sensitive information is stored securely.

One of the key advantages of using blockchain for IDs lies in its immutable nature. Once data is recorded on the blockchain, it cannot be altered or deleted, ensuring the integrity of the information. This level of security greatly diminishes the risk of identity fraud, a prevalent concern in today's digital age.

Moreover, the blockchain-based system provides citizens with greater control over their personal information. Through cryptographic keys, individuals can manage who has access to their data, enhancing privacy and data protection. This empowers citizens and fosters a sense of trust in the government's digital initiatives.

Additionally, the use of blockchain streamlines administrative processes. Verifying identities becomes quicker and more reliable, reducing the time and resources traditionally spent on manual checks. This efficiency not only benefits citizens but also optimizes government operations.

The adoption of blockchain for government IDs also sets a precedent for other jurisdictions. It showcases the potential of decentralized technology in enhancing public services and strengthening trust between citizens and their governments.

However, challenges remain. Ensuring the accessibility of this technology to all citizens, regardless of their technological literacy, is crucial. Additionally, robust cybersecurity measures must be in place to safeguard against potential threats.

Buenos Aires' blockchain-based government ID pilot program is a groundbreaking initiative that has the potential to revolutionize the way governments interact with their citizens. By integrating blockchain technology into government IDs, Buenos Aires is setting a new standard for digital governance and demonstrating the transformative potential of this technology in creating more secure, efficient, and citizen-centric public services.

This initiative is a beacon of progress in a world that is grappling with evolving technological landscapes. It is a model for governments worldwide that are looking to harness the power of blockchain technology to redefine the relationship between citizens and their governments.




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User Security
Blockchain Data Breach Data Leak Data Privacy Data Safety data security Decentralized User Data User Privacy User Security

How Blockchains Can Prevent Data Breaches?

 

Today, data breaches have become all too common. Based on the Varonis 2021 Data Risk Report, most businesses have poor cybersecurity practices and unprotected data, putting them at risk for cyberattacks and data loss. Mitigating risks is no longer a luxury, with a single data breach costing a company an average of $3.86 million and eroding a firm's image and consumer trust. 

However, as cyberattacks become more widespread and sophisticated, simply patching up traditional cybersecurity measures may not be sufficient to prevent future data breaches. Instead, it is critical to look specifically for more advanced security solutions. As far as innovative solutions go, using blockchain to prevent data breaches may be our best bet.

The fundamentals of blockchain technology

Blockchain technology, also known as distributed ledger technology (DLT), is the result of decades of cryptographic and cybersecurity research and development. The term "blockchain" was popularised by cryptocurrency because it is the technology underlying record-keeping in the Bitcoin network.

Since it enables data to be recorded and distributed but not copied, this technology makes it extremely difficult to change or hack a system. It can be a promising solution for data breaches in any environment with high-security requirements because it provides a completely new method to securely store information.

A blockchain, which is based on the concept of peer-to-peer networks, is a public, digital ledger of stored data that is shared across an entire network of computer systems. Each block contains several transactions, and whenever a new transaction occurs, a record of that transaction is added to the ledger of every network participant.

Its strong encryption, decentralized and immutable nature and decentralized and immutable nature could be the answer to preventing data breaches.

Tim Berners-Lee, the inventor of the World Wide Web, recently stated that "we've lost control of our personal data." Companies store massive amounts of personally identifiable information (PII), such as usernames, passwords, payment details, and even social security numbers, as demonstrated by Domino's data leak in India (among others).

While almost always encrypted, this data is never as secure as it would be in a blockchain. Blockchain can finally put an end to data breaches by utilizing the best aspects of cryptography.

How is a shared ledger more secure than traditional encryption methods?

Blockchain uses two types of cryptographic algorithms to safeguard stored data: hash functions and asymmetric-key algorithms. This way, the data can only be shared with the member's permission, and they can also specify how the recipient of their data can use the data and the time frame within which the recipient is permitted to do so.

Asymmetric Encryption

Asymmetric encryption, also known as public-key cryptography, uses two keys to encrypt plain text: a private key generated by a random number algorithm and a public key. The public key is freely available and can be transferred via unsecured channels.

The private key, on the other hand, is kept secret so that only the user knows it. It is nearly impossible to access the data without it. It functions as a digital signature, similar to physical signatures.

In this way, blockchain empowers individual consumers to manage their own data and choose who they share it with via cryptographically encoded networks.

Hash functions

When a chain's first transaction occurs, the blockchain's code assigns it a unique hash value. As more transactions occur, their hash values are hashed and encoded into a Merkle tree, resulting in the formation of a block. Every block is assigned a unique hash that is encoded with the hash of the previous block's header and timestamp.

This creates a link between the two blocks, which becomes the chain's first link. Because this link is created with unique information from each block, the two are inextricably linked.

Immutability

Blockchains, in addition to being decentralized, are also designed to be immutable, which increases data integrity. Because blockchains are immutable, all data stored on them is nearly impossible to alter.

Because each member of the network has access to a copy of the distributed ledger, any corruption in a member's ledger is automatically rejected by the rest of the network members. As a result, any change or alteration to the block data will cause inconsistency and break the blockchain, rendering it invalid.

Despite the fact that blockchain technology has been around since 2009, it has a lot of unrealized potential in the field of cybersecurity, particularly in terms of preventing data breaches. Blockchain protocols use top-tier cryptography to ensure the security of all data stored in the ledger, making it a promising solution.

Since nodes running the blockchain must always check the legitimacy of any transaction before it is executed, cybercriminals are almost always stopped in their tracks before gaining access to any private data.
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