The cryptocurrency was received positively by many people and companies because of its potential quick boost to the financial status. Many businesses and corporations are devising ways of integrating blockchain technology because of its numerous advantages. These benefits are well spread in many industries, including cybersecurity. However, this technology has been linked to several negative impacts, especially in the cybersecurity industry.
Perhaps you’ve heard of bitcoin scams. This article blog some of the top positive and negative impacts of cryptocurrency on the cybersecurity industry, especially from blockchain technology.
Blockchain and Security
Blockchain technology is built from published databases using a complex link that is not easily altered and ideal for security. The Denial of Service (DDoS) is minimized when Blockchain technology is used as a replacement of the Domain Name System (DNS). Moreover, Blockchain cryptography has been applied to secure transmission of information and prevention of data manipulation. These developments have driven cybersecurity to consider the integration of Blockchain technology. Consequently, it enhances the security of end-users and the transaction of information. Additionally, Blockchain technology facilitates the protection of critical infrastructure.
Blockchain technology is highly secure because it is an offline and decentralized system, functioning as a database distributed across a vast computer network. This reduces the chances of the stored information being illegally accessed and hacked.
Moreover, due to this distribution, the Blockchain becomes difficult to be controlled by a single entity and cannot break down at a given single point. With such qualities related to cybersecurity, this technology is considered a solution to various economic, political, and legal issues, especially regarding contracts and transactions that require the updating and distribution of data.
Minimal Exposure to Security Breaches
Customer information, such as names, addresses, credit cards, and bank account information needs to be kept away from the reach of people with ill motives. They become vulnerable to hacking when they are not adequately encrypted. However, the Blockchain technology applied in cryptocurrency does not necessitate customers to provide their financial and physical address information for authentication. With Blockchain technology, transactions do not involve exposing personal information that could be used in the future to make payments illegally. Furthermore, this technology reduces the costs incurred in the transactions, opening up global markets in the 21st century. Therefore, enhanced customer privacy means that Blockchain technology significantly minimizes the concerns resulting from security breaches.
The Blockchain technology has enabled customers to safely keep their currencies in offline digital wallets. This has dramatically lowered the chances of the accounts and wallets being hacked because the Blockchain network is highly decentralized. Hackers usually install keylogger software to help them crack the codes of the cryptocurrency user’s digital wallets. To prevent this, Blockchain networks take all precautionary measures to enhance keylogger applications’ privacy and security.
The Dark Side
It is crucial to maintain information privacy against possible cyberattacks and be updated on the current security threats. The introduction of cryptocurrency has several negative impacts on the cybersecurity industry. This section discusses 3 common ways cybercriminals use cryptocurrency to hack users’ accounts and force visitors into mining currencies unknowingly.
This is a malicious software in the form of a malware involving holding files via encryption and demanding a ransom for their release. It has recently been associated with affecting personal computers, interrupting hospital and transportation networks, as well as harming businesses. Cybercriminals involved in ransomware usually demand cryptocurrency in exchange for the held files. The victims are instructed on how to purchase and use cryptocurrency through the pop-ups that appear with their computers’ ransom message. In several cases, the attackers offer support to the victims, with the main agenda of ensuring the transactions are completed for them to obtain the cryptocurrency. Usually, cybercriminals target people with little knowledge of cryptocurrency. However, such dark webs are identified by exchanging chat messages.
Black Market Transactions
Certain cyberspaces, commonly referred to as dark webs, are only accessible through specialized browsers that keep users’ activity anonymous. These dark webs are accessed by cybercriminals to trade in hacking services, compromised credentials, credit cards, drugs, and weapons. This means that cryptocurrencies could also be made anonymous and accessed by such cyber criminals. Moreover, due to the absence of a central regulating body, transactions in cryptocurrency do not pass through banks or other credit agencies. Even digital cryptocurrency wallets’ existence does not guarantee an effective way of tracing a wallet down to an individual user. Therefore, the rise in the demand for cryptocurrency translates to increased cybercrime.
The introduction of a new cryptocurrency in circulation requires the cryptos to be mined, necessitating downloading a new crypto mining tool. The crypto mining process involves solving complex puzzles to generate currencies, consuming vast amounts of energy. This makes people force others into crypto mining for them, a technique known as cryptojacking. In this scenario, visitors to crypto mining are forced into mining for others without their knowledge. Although the media has recently tried to prevent this practice, which takes the form of ransomware, cryptojacking is least associated with the risk involving the confidentiality and integrity of users.
The Bottom Line
It is definitely clear that cryptocurrency offers many positive influences on several industries, including cybersecurity. These include enhanced customer security, which minimizes the chances of accessing and hacking of user wallets. Blockchain technology has been considered to solve economic, legal, and political issues because of the increased ability to distribute databases over a wide range of computer networks. However, cryptocurrency has adverse effects on cybersecurity, enabling cybercriminals to prey upon user accounts, using personal information. This has led to the emergence of malpractices, including cryptojacking, ransomware, and black-market transactions.
Therefore, considering these factors enables potential crypto miners to increase their awareness of crypto mining threats. It is always advisable to keep private the personal information, minimizing the exposure of such sensitive data to suspicious websites during transactions. This is because they could be used in future fraudulent transactions.