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Bring Trust to Blockchain with Thales
In a permissioned blockchain, only approved participants can validate and process transactions. However, even with this setup, trust and security remain critical concerns. Security must be integrated to ensure the blockchain is protected from cyberattacks and remains reliable. This can be achieved through robust authentication methods and secure cryptographic key storage. By prioritizing these measures, you can safeguard the blockchain and maintain its trustworthiness.
Thales offers Hardware Security Modules (HSMs) and Authentication services to enhance blockchain security in three key areas:
- Ensure secure access to the blockchain by providing strong identity verification and authentication.
- Protect the core technologies of the blockchain to maintain its integrity and security.
- Ensure secure communication throughout the blockchain network to protect data and transactions.
Thales Blockchain Solutions
While blockchain is inherently secure due to its decentralized design and complex math, exploiting vulnerabilities for gain is still possible. To stay protected, it is crucial to build security into your system from the start, always storing your keys in a hardware-based solution to avoid risks and ensure safety.
Luna Network HSMs are built to securely store the private keys used by blockchain members to sign transactions, using a FIPS 140-2 Level 3 certified cryptographic processor. These keys are protected throughout their entire lifecycle, ensuring they can’t be accessed, altered, or used by unauthorized devices or individuals. Storing cryptographic keys in software exposes them to theft, which could compromise the security of the entire blockchain ledger.
ProtectServer HSMs, similar to Luna Network HSMs, are designed to safeguard cryptographic keys from being compromised while offering encryption, signing, and authentication services.
Both Luna and ProtectServer HSMs enhance their basic functionality by allowing custom code development within the secure environment of the FIPS 140-2 Level 3 validated Thales HSM. The Functionality Modules (FMs) let you tailor the HSM’s features to meet your organization’s specific needs, including supporting Quantum algorithms.
Thales provides Luna Cloud HSM services, a cloud-based solution, through Data Protection On Demand (DPoD). With DPoD, you don’t need to worry about deploying or maintaining hardware, as it uses an as-a-service billing model for convenience.
SafeNet Authentication Service (SAS) helps lower operational costs by offering a fully automated, secure authentication service. It provides flexible token options to customize authentication according to your specific needs.
About Blockchain
- Blockchain is a decentralized database that ensures secure and transparent recording, verification, and management of transactions.
- Transactions needn’t be financial; they can be any transfer between two parties that would normally require a third party to verify and facilitate the exchange.
- Blockchain removes the need for centralized control. Instead, all transactions are decentralized and verified directly by the blockchain’s distributed ledger.
- Unlike the common belief, blockchain technology is not limited to securing financial transactions. It can also track and verify any digital asset, including code or smart contracts.
Benefits of Blockchain
- Remove the need for centralized control and the extra costs associated with it.
- Trust is shared among all members of the blockchain.
- Transactions are signed digitally using the asset owner’s public and private key pair.
- Once data is recorded in a block, it cannot be changed later.
- Open, distributed ledgers efficiently record transactions between two parties in a verifiable and permanent way.
- Transactions can involve not only data but also code or smart contracts.
Top 3 Popular Blockchain Use Cases
1 Cryptocurrency
Risk: Encrypted digital currencies identify the currency but not the owner. The person who holds the coin’s encryption key owns it. This means that a coin cannot be recovered if it is stolen.
Solution: Storing your encryption keys in a FIPS-validated root of trust is essential to securely owning your keys and, by extension, your cryptocurrency.
2 Smart Contracts
Risk: A smart contract is a computer program that automatically executes and enforces the terms of an agreement. If the blockchain is compromised, the smart contract can be changed, which breaks the trust in the system and removes the ability of two parties to do business without a middleman.
Solution: Securely execute contract terms between anonymous parties by using strong authentication and storing your encryption keys in a hardware root of trust. This guarantees proper identification of all parties and keeps your data safe from unauthorized access.
3 Internet of Things (IoT)
Risk: The limitations of traditional trust models have made the Internet of Things (IoT) more vulnerable. A key example is Mirai-style botnets, which enabled hackers to take control of thousands of IoT devices. Many of these devices were only secured with default passwords, making it easy for hackers to launch Distributed Denial of Service (DDoS) attacks.
Solution: Blockchain enhances the security of the Internet of Things (IoT) by offering a decentralized trust model. It eliminates the single point of failure, allowing device networks to protect themselves better. For example, if any device starts acting suspiciously, the network can isolate it, preventing potential security threats.
Thales Blockchain Partners
Thales has partnered with top blockchain and cryptocurrency companies to offer secure solutions for business transactions. In collaboration with partners like IBM, R3, Ethereum, Hyperledger, Ledger, BitGo, Symbiont, and ConsenSys Quorum, Thales is helping industries improve efficiency and build trust. Thales also supports blockchain applications, including Bitcoin, Hyperledger, Ethereum, Altcoins, Monero, and more.
Let us help
Starting with blockchain can be overwhelming due to its complexity, multiple standards, and the shift from centralized to decentralized platforms. Many blockchain organizations struggle with successful implementation. To avoid these pitfalls, reach out to Thales to learn how you can benefit from blockchain technology and how Thales’ HSM and SAS solutions can keep your transactions safe.
Join our webinar, “Blockchain for Payments: Real-World Experience,” where we talk to leading experts in the blockchain payments industry. Discover their experiences and insights on the future of blockchain payments.
Conclusion
Securing blockchain transactions is crucial for maintaining trust, transparency, and integrity in the decentralized system. Organizations can safeguard their blockchain networks from potential threats by implementing robust security measures like hardware security modules (HSMs), cryptographic key management, and strong authentication methods. As blockchain technology evolves, partnering with trusted providers like Thales ensures your blockchain solutions remain secure, reliable, and future-proof. Stay ahead of the curve by leveraging advanced security practices and solutions tailored to protect your digital assets and business operations.
FAQs
Q1: What is blockchain security?
Ans: Blockchain security refers to the methods and practices used to protect data, transactions, and digital assets within a blockchain network. It ensures blockchain data’s integrity, confidentiality, and availability and prevents unauthorized access, tampering, and cyber threats.
Q2: Why is blockchain security important?
Ans: Blockchain security is crucial because it helps maintain trust in the system by ensuring transactions are legitimate and unalterable. It also protects digital assets from theft, fraud, and attacks, making the blockchain a reliable platform for business and financial transactions.
Q3: How can blockchain security be enhanced?
Ans: Blockchain security can be enhanced using hardware security modules (HSMs), cryptographic key management, strong user authentication, and encryption. Additionally, implementing security protocols, such as multi-signature and consensus algorithms, helps strengthen the overall security of the blockchain.
Q4: What role do HSMs play in blockchain security?
Ans: HSMs (Hardware Security Modules) are critical in securely generating, storing, and managing cryptographic keys used in blockchain transactions. They prevent unauthorized access to sensitive keys, reducing the risk of hacking and data breaches.
Q5: What are the common risks to blockchain security?
Ans: Common risks include hacking attempts, loss of private keys, attacks on consensus mechanisms, and vulnerabilities in smart contracts. Poor key management and weak authentication methods can also lead to significant security breaches.
Q6: How do smart contracts impact blockchain security?
Ans: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. If not properly secured or written, they can be vulnerable to exploits, leading to potential breaches. Ensuring strong coding practices, auditing, and security features is essential for protecting smart contracts.
Q7: Can blockchain be hacked?
Ans: While blockchain technology is inherently secure due to its decentralized nature, it can still be vulnerable to attacks like 51% attacks, phishing, or hacking of private keys. Implementing strong security practices, such as key vaulting and multi-factor authentication, helps minimize these risks.
Q8: What are cryptographic keys, and why are they important for blockchain?
Ans: Cryptographic keys secure transactions within the blockchain. They authenticate the identity of the transaction parties and ensure that the data cannot be altered. Proper management of private and public keys is vital for maintaining the security and trust of blockchain systems.
Q9: How does blockchain ensure data integrity?
Ans: Blockchain uses a consensus mechanism in which all network participants validate transactions before they are added to the ledger. Once data is recorded in a block, it cannot be altered or deleted, ensuring its integrity and immutability.
Q10: How can businesses secure their blockchain networks?
Ans: Businesses can secure their blockchain networks by using robust encryption methods, securely managing private keys, implementing multi-layered authentication systems, and partnering with trusted providers like Thales to integrate hardware security modules (HSMs) and other advanced security technologies.
