Blockchain Pentesting – A Comprehensive Guide
Blockchain pentesting tests blockchain apps and networks to find security vulnerabilities that hackers can exploit. It helps secure data stored in the blocks from various cyber threats. Technology is advancing every day, with new applications and platforms being produced to tackle the problems of existing systems. Industries like fintech, crypto, and healthcare use Blockchain technology to store data (especially transaction information). According to Chainalysis, in 2022 over $3.8 billion of cryptocurrency was stolen from users. Although blockchain’s security is amongst the best, they are not unhackable. As a result, regular blockchain pen tests are required to prevent breaches. In this blog, we will discuss blockchain pentesting in detail, what it is, how it is performed, and why companies using blockchain should make it a priority. What is Blockchain? Since it is practically a new technology that isn’t followed by most individuals on the planet, we will give a brief definition. Blockchain is like a spreadsheet that stores transaction data in the form of blocks, which are linked with each other. When you make a transaction of, let’s say Bitcoins, a new block is created having the details of the transaction. This new block is linked to your previous ones, which then makes a “chain” of blocks. Blockchain technology is a significant part of Web3 that is mostly a one-on-one interaction. As a result, this makes blockchain one of the most secure forms of technology to store sensitive data (still breachable though). What is Blockchain Pentesting? Blockchain pentesting or penetration testing is the process of simulating real attacks on blockchain apps to find security vulnerabilities. Even though blockchain is by far the most secure form of data storage, attackers are always looking for new ways to breach them, and are also getting success, in some cases. The testers behave like real hackers and exploit the coding errors to break into the network. If they are successful in breaching, then it is a security flaw that needs to be fixed. As a result, this helps organizations to build a technology that is secure with connected devices. Pen testers (a.k.a ethical hackers) try to find security loopholes in the network, contracts, and architecture of the apps. The main goal of blockchain penetration testing is to check whether their security measures are strong enough to block an attack. Blockchain Security Vulnerabilities So far, some major vulnerabilities consistently appear in blockchain protocols. These security issues affect project managers, developers, stakeholders, and the entire blockchain network, causing significant damage to its ecosystem. Blockchain vulnerabilities can be divided into several parts, such as: 1. Smart Contract Vulnerabilities 2. Consensus Mechanism Weaknesses 3. Network Vulnerabilities 4. Node-Level Vulnerabilities 5. Cryptographic Vulnerabilities 6. API Vulnerabilities The Importance of Blockchain Pentesting While blockchain companies boast highly about their application’s security, each vulnerability should be carefully considered. Blockchain penetration testing is probably the only way one can test each emerging vulnerability and fix it before an attacker exploits it. Blockchain penetration testing is important for the following reasons: Benefits of Blockchain Pentesting 7 Key Areas of Focus in Blockchain Pentesting There are a few areas where pen testers need to prioritize their focus in the blockchain, such as: 1. Smart Contracts Security Check the code thoroughly for potential vulnerabilities such as reentancy or overflow issues. This ensures the contracts function properly and cannot be exploited. As a result, it enhances the system’s reliability. 2. Node Security Configure nodes in the blockchain to withstand various types of attacks. This enhances the network’s resilience against cyber threats and offers a sense of security among the users. 3. Consensus Mechanism Here the pen testers identify, and address vulnerabilities required to secure the network. This ensures safe and reliable transactions for all parties involved. 4. Data Privacy Blockchain attacks mostly happen to steal data. Data privacy involves implementing robust security measures like encryption and access controls to protect data from unauthorized access. This assures users that their information is safe, which, in turn, builds loyalty and credibility. 5. Transaction Security This involves employing effective measures such as cryptography and multi-signature transactions to secure financial transactions against fraud or illegal modifications. This helps users feel that their funds are secure and protected. 6. Key Management Encryption keys are important to access and read data. Key management involves implementing strict protocols to protect these keys from cyber threats. Thus, securing user accounts and assets in applications. 7. Network Security Once attackers get hold of the network, they can basically access everything in the blockchain. Network security involves deploying robust defenses such as firewalls and network access controls to shield the network from attackers for smooth and uninterrupted services. Methodologies in Blockchain Pentesting While different blockchain pentesting companies follow different steps, the core process remains the same. Here’s Qualysec’s blockchain penetration testing process: Do you want to secure your application from emerging security vulnerabilities? Conduct penetration testing with us and discover what flaws lie with your application. We follow a process-based pentesting method and have secured over 450 applications. Talk to our cybersecurity expert now! Talk to our Cybersecurity Expert to discuss your specific needs and how we can help your business. Schedule a Call Best Practices for Effective Blockchain Pentesting Blockchain penetration testing best practices identify vulnerabilities in nodes, smart contracts, consensus mechanisms, and networks. Here is a list of blockchain pentesting best practices: Would you like to see a real pen test report? Click the link below and download one in no time! Latest Penetration Testing Report Download Conclusion Blockchain technology is going to be the future of transaction data storage. With blockchain applications increasing now and then, the demand to secure these applications is also increasing. Blockchain pentesting is the only process through which you can find the security vulnerabilities present in your application. What we have discussed in this blog is just the surface, as penetration testing and blockchain technology are more complex. With the help of Qualysec Technologies, you can secure your blockchain applications effectively. Till