On the Security Risks of the Blockchain

ABSTRACT The adoption of blockchain technology is taking place at a fast pace. Security features inherent in blockchain make it resistant to attack, but they do not make it immune, and blockchain security risks do exists. This paper details the associated risks and concerns of the blockchain. We explore relevant standards and regulations related to blockchain and survey and analyze 38 blockchain incidents to determine the root cause to provide a view of the most frequent vulnerabilities exploited. The paper reviews six of these 38 incidents in greater detail. The selection is made by choosing incidents with the most frequent root cause. In the review of the incidents, the paper details what happened and why and aims to address what could have been done to mitigate the attack. The paper concludes with a recommendation on a framework to reduce cyber security risks when using blockchain technologies.