Cryptocurrency News: Will Cryptocurrency Blockchain Technology Survive the Test of Time?

Two days ago, Binancethe largest in the world cryptocurrency exchange, he admitted his Blockchain suffered a double blow when Hackers stole about $100 million of cryptocurrency from its blockchain bridge running on the BNB chain (formerly known as Binance Smart Chain). A blockchain bridge is a tool used to transfer cryptocurrency between different applications running on the blockchain.

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However, Binance’s misery didn’t end there. BNB Chain later stated in a blog post that a total of two million tokens of their cryptocurrency BNB, worth about $570 million, were withdrawn by the hacker.

This year has been particularly challenging for cryptocurrency exchanges around the world, with many countries tightening their cryptocurrency trading laws, some like India imposing high taxes on earnings, and others calling for an outright ban on cryptocurrencies.

There is no doubt that the premise of blockchain as a technology is impressive, as it offers the possibility of eliminating intermediaries such as banks. But decentralization brings with it a number of problems, such as high energy costs, slow speeds, and of course, hacks.

Blockchain projects are considered highly secure, but several cyberattacks this year have exposed chinks in the armor. Over $1.6 billion in cryptocurrency was stolen from users in 2022, according to Chainalysis blockchain data platform.

Of the seven largest cryptocurrency hacks to date, six have occurred in the last two years, with Ronin Network ($625 million, 2022), Poly Network ($611 million, 2021), and Binance ($570 million, 2022) topping the list.

Are Cryptographic Blockchains Unbreakable?

It is important to understand the distinction between cryptocurrency and blockchain. The former is a decentralized use case of the latter. Simply put, cryptocurrency is a small but significant part of what blockchains enable.

Cryptocurrencies, which are decentralized digital assets, use cryptography to ensure secure transactions between different parties. These transactions are recorded and stored in a digital ledger called a blockchain.

While blockchains are virtually immune to hackers, weaknesses outside of these digital ledgers present opportunities for thieves, particularly when it comes to cryptocurrency transactions and wallets.

It is not impossible, as has been demonstrated by numerous cyber attacks over the years, for hackers to gain access to cryptocurrency holders’ wallets and use their private key, a sort of access code needed to sign transactions and prove ownership of a blockchain address, to steal cryptocurrency.

There is also a way in which a blockchain itself could be compromised: the so-called 51% attack. Hackers can theoretically take over a blockchain by controlling the majority of the blockchain’s computing power, called the hashrate. If they own more than 50% of the hashrate, they can introduce a tampered blockchain.

This allows them to make changes to transactions that were not confirmed by the blockchain before they took over. While this type of attack is possible in theory, it is extremely difficult to execute in practice.

However, as several central banks around the world are becoming more strict regarding cryptocurrencies, massive cyber attacks like the one last week do not bode well for the cryptocurrency community as they discourage investors.

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