IT company warns: More than 280 blockchains are at risk
More than 280 blockchain networks and $25 billion are at risk due to "zero-day exploits", according to security firm Halborn.
More than 280 blockchain networks and $25 billion are at risk due to "zero-day exploits", according to security firm Halborn.
Cybersecurity company Halborn discovered and fixed several critical vulnerabilities during a security audit in March 2022 of the Dogecoin blockchain. Now the company has found similar security issues affecting more than 280 other blockchains. That means at least $25 billion in cryptocurrencies are currently at risk.
In addition to Dogecoin, Zcash and Litecoin have already patched the security flaw in collaboration with Halborn. Hundreds of other blockchains, however, remain at risk, the company says.
On Twitter, Halborn describes the vulnerabilities as so-called "zero-day exploits" that attackers can use to tilt a blockchain’s consensus mechanism in their favor.
What are zero-day exploits?
A zero-day exploit refers to a vulnerability in software or a system that is not yet known to the developers and for which there is no patch. This means attackers can exploit the vulnerability to gain access to the system without the owners knowing. Zero-day exploits can exist in various kinds of software and systems including operating systems, applications, and blockchains.
Zero-day exploits in blockchains
An example of a zero-day exploit on a blockchain that uses a proof-of-work consensus mechanism might look like this: An attacker finds a previously unknown vulnerability in the network’s mining algorithm. This lets him validate a new block with less computational power and thus create a valid block. The attacker then uses this vulnerability to mine more blocks than other participants and gradually gains the majority of the network’s hashrate to eventually carry out a 51% attack.
This lets the attacker manipulate the blockchain, double-spend transactions, and enrich themselves with a lot of coins.
Halborn helps affected blockchains
How to prevent a zero-day exploit can vary by blockchain because of differences in the consensus mechanism and code, Halborn says. The company recommends all blockchains that use UTXO-based nodes update their node to the latest version 1.14.6. Additionally, Halborn is already in touch with several blockchain projects to disclose potential vulnerabilities and develop further fixes for them.
