Pentagon Discovers Unsettling Vulnerabilities Regarding The Blockchain Tech 

A report titled “Are Blockchains Decentralized, Unintended Centralities in Distributed Ledgers” warns the crypto industry by saying that some big players can exercise centralized control over the complete blockchain system. 

The report has raised concerns for a variety of sectors such as security, fintech, big tech, and the crypto industries. 

Defense Advanced Research Projects Agency (DARPA), the research arm of the Pentagon, appointed a security research organization, Trail of Bits, to investigate the blockchain. The security organization mainly focused on the two leading cryptocurrencies in the global market, Bitcoin and Ethereum.

According to Trail of Bits, Bitcoin can be disrupted by two entities, while only two are required to disrupt Ethereum. Moreover, 60% of all Bitcoin traffic moves through just three ISPs.

Crypto Assets In the New Era Of Finance 

The Pentagon’s report was released shortly after the dramatic meltdown of Terra. Financial experts warn that the Luna crash was an essential lesson about the risks of the blockchain.

Factors such as supply chain problems, federal interest hikes, inflation, a looming recession, and the global economy continue to affect digital assets. The recently published report only added to the concerns regarding the blockchain, affecting the perception and confidence of investors. 

In this new digital financial era, security remains a significant challenge and a top priority. 

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Security Is Still A Big Concern When It Comes To Blockchain

As per the Trail of Bits report, the safety of a blockchain relies on the protocols and the security of its off-chain governance or consensus mechanisms. Researchers at Trail of Bits registered multiple accounts with mining pool sites to study its code. The revelations were found to be quite shocking. 

A leading global mining pool, ViaBTC, allocates the password “123” to its accounts, according to Trail of Bits. Another mining firm, Pooling, does even have a policy of functioning of validating credentials at all. Meanwhile, Slushpool asks users to ignore the password field. These three mining pools make up for about 25% of the Bitcoin hash rate or total computer power.

Big Tech Players Need To Be Careful 

Trail of Bits report also cautions major players while they create their future. Joshua Baron, DARPA program manager supervising the study, said that the report highlights a constant need for careful review at the time of assessing the latest technologies like blockchains as their use increases in our society and economy.

Concluding, Baron said that a promise of security should not be taken at face value, and individuals using blockchains should consider their associated vulnerabilities.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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