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Scallop Learn
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    • Welcome to Scallop Learn
    • Crypto
      • Basics
        • Don't Feel the FOMO - Crypto Slangs Explained
        • Blockchain: What is it?
        • What is an Exchange?
        • What are Stablecoins?
        • What is the Metaverse?
        • What are NFTs?
        • History of Bitcoin
        • What is Binance Smart Chain?
        • What is an IDO?
        • What is Staking?
        • Token Burning
        • Debunking Crypto Myths
        • The Crypto Dictionary
        • What is DYOR?
        • What is a Neo-bank?
        • Proof of Work vs Proof of Stake
        • Exploring Crypto Communities: How to Join and Connect with Like-Minded Enthusiasts
        • What is a DAO?
      • Intermediate
        • Scallop Chain Faucet: All you need to know!
        • Layer 2
        • Liquidity Pools
        • ETH 2.0 - The Merge
        • Centralised Exchanges VS Decentralised Exchanges
        • Web 3.0
        • Regulation
        • REIT's on the blockchain
        • The Future of Business Payments: How Crypto Payment Partners are Leading the Way
        • What Is A Crypto Card? How Does It Work?
        • Blockchain and AI
        • Why are regulations essential in Crypto Market? How does Scallop lead the way?
        • Banking on Blockchain
        • E-money Tokens
        • The Power Surge of Cross-Chain Interoperability in Blockchain's Future
        • Crypto Trading 101: Must know candlestick patterns for a successful trade
        • Exploring blockchain innovations and their real-world breakthroughs
        • Do not miss these common indicators of the crypto bull market
        • Decoding the Dynamics of Permissioned Blockchain Consensus Mechanisms
        • Summary
      • Advanced
        • Can Quantum Computers be a potential threat to Crypto?
        • Unlocking the cryptocurrency potential: How Banks can thrive in the digital age?
        • How do privacy-enhancing technologies ensure anonymity on the blockchain?
        • What Does Fintech Mean? Understanding the Intersection of Finance and Technology
          • Decoding Data Tokenisation: Its Vital Role and Relevance
        • Unravelling the Concept of the Time Value of Money: Its Implications and Applications
        • Unlocking the Potential of Real-World Assets
        • What is Byzantine fault tolerance?
        • Global Crypto Adoption and Its Potential Socio-Economic Impact
        • How ZK-Rollups are Supercharging Blockchain Transactions?
    • Security
      • Skimming of Credit and Debit Cards: What You Need to Know
      • How Blockchain Security Can Keep Your Crypto Safe?
      • Keeping Your Account Safe
      • Money muling scams: What are they and how can you avoid them?
      • Beware of these common frauds while using payment cards
    • Tutorials
      • Scallop App
      • Scallop Ramp
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      • How are cryptocurrencies taxed across the globe?
      • What Can You Do On An Exchange?
      • Avoid FOMO To Plan A Recovery: 5 Things To Do In A Crypto Bear Market
      • Inflation
      • Meme Coins vs Altcoins
      • The Basics Of Investing
      • The Ripple Effect
      • Central Bank Digital Currencies: A Global Revolution and Impact
    • Know Your Crypto
      • Bitcoin
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      • Defi Introduction
      • Borrowing and Lending: Aave
      • Borrowing and Lending: Compound
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      • Wrapped Bitcoin
      • Summary
      • A Practical Guide: The Defi Walkthrough
      • Summary
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    • What is Scallop?
    • Products
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        • Tips And Tricks For Getting The Most Out Of The Scallop App
      • Scallop Exchange
        • Getting started on Scallop Exchange
        • Trading Futures
        • Trading with Margin
        • Buying Ethereum on Scallop Exchange
      • Scallop Chain
        • Tech
          • Scallop Bridge Contracts
          • Configurations
          • Relayers
          • Launch Your Dapp on Scallop
          • Developing and Deploying Contracts​
          • Scallop Explorer​
          • Scallop Faucet​
          • Contract Verification​(Under Development)
          • Contract Security Checks​
          • Scallop Whitelist
        • Scallop Chain: Built on Cosmos and Secured by Biometric Bridge
        • E-Money Tokens and Scallop
      • Scallop Business
    • Getting Started
      • Getting Started: Fiat Onboarding And Exchanges
      • Getting Started: The Defi Walkthrough
      • Getting started: Scallop Exchange
      • Staking
        • Scallop Staking Guide
          • Useful Resources
          • 1. Setting Up Metamask Wallet
          • 2. Importing existing wallet
          • 3. Installing Binance Smart Chain
          • 4. Setting up a Kucoin Account
          • 5. Buying SCLP with a market order on Kucoin
          • 6. Transferring from Kucoin to Metamask
          • 7. Connecting Metamask to the SCLP Staking platform
        • LP Staking Guide
  • Announcements
  • News
    • News: Terra Collapse
    • Terra: Beyond Hope
    • News: Chapter 11 for Celsius
    • News: Nomad Bridge Hack
  • Extras
    • Task Lists
    • Tokenising Real Estate
    • How to Donate Crypto to Ukraine
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On this page
  • Types of blockchains
  • Public Blockchains:
  • Private Blockchains:
  • Permissioned Blockchains:
  • Blockchain security risks
  • How to ensure the blockchain is secure?
  1. Guides
  2. Security

How Blockchain Security Can Keep Your Crypto Safe?

With the rise of cryptocurrency and the increasing adoption of blockchain, ensuring the safety and security of your digital assets is more important than ever. Blockchain technology might look tamper-proof. However, like any technology, it is not immune to security threats. Let's explore what these threats are and what are some of the best practices to avoid them. But first, it is important to understand different types of blockchains.

Types of blockchains

Public Blockchains:

  • Anyone can join and validate transactions

  • Transactions are public and transparent

  • No restrictions on processors

Private Blockchains:

  • Restricted to business networks

  • Membership is controlled by a single entity or consortium

  • Transactions are private and often require permission to view

Permissioned Blockchains:

  • Limited to a select set of users with granted identities using certificates

  • Transactions are private and often require permission to view

  • Membership is controlled by a single entity or consortium

Blockchain security risks

Cyberattacks can be a major threat to blockchain technology even if the ledger of transactions is near-impossible to tamper with. The most common cyberattacks are code exploitation, stolen private keys, and employee computer hacks.

Code exploitation happens when cyber criminals exploit structural vulnerabilities in the code of a blockchain system to carry out malicious activities such as stealing funds or manipulating data records.

Stolen private keys put someone's digital signature susceptible to theft; if a cyber criminal were to gain access to these keys, they could pose as the signature's owner for malicious purposes.

Lastly, employee computer hacks involve cyber criminals gaining access to personnel data by somehow infiltrating the server where it is stored.

How to ensure the blockchain is secure?

Blockchains need to function on a secure and resilient infrastructure. Thus, when establishing a private blockchain, proper security protocols must be in place to ensure secure operation. Business risks such as financial implications, reputational factors, and compliance requirements must also be considered.

On the other hand, governance risks mostly arise from decentralised blockchain solutions and must involve strong controls on decision criteria, governing policies, identity and access management.

Administrators must create a risk model that addresses all business, governance, technological, and process concerns to execute a blockchain solution security model. Next, they must assess the blockchain solution's dangers and develop a threat model.

These measures can be based on:

  • Implement blockchain-specific security mechanisms.

  • Use standard security controls.

  • Implement blockchain business controls.

It is worth mentioning that Scallop Chain is a regulated and secure blockchain to store your cryptocurrency or build decentralised applications (dApps). With its focus on security, scalability, and compliance, Scallop Chain offers a trusted and reliable option for individuals and businesses looking to leverage the power of blockchain technology.

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Last updated 1 year ago