A new report has outlined certain security risks in the Ethereum smart contracts system, which may lead to endangering the entire foundation of the concept. With this in mind, the report explored the “lack of diversity,” which has been cited as a possible problem for a while now.
Ethereum’s Inherent Security Problems
According to a new reporting called Analyzing Ethereum’s Contract Topology, the tech was cited as highly vulnerable as it was easily exposed to a variety of lurking dangers from its so-called lack of variety. The authors of the report outlined a disconcerting future for the entire technology and the underpinning mechanism of it.
According to the research paper, there is an actual buggy part of the code which is susceptible to outside influence and that could potentially cost users a great deal. As a result, every system that is based on the code will now be endangered from running into serious trouble, the U.S. National Science Foundation has said, supporting the study.
Analyzing Ethereum’s smart contracts’ bytecodes was not easy. Over 5 million blocks were first, a number that covers Ethereum operations spanning three years, back to the time when the cryptocurrency saw the light of day in 2015. The researchers have been quite pleased with their findings, too, though, successfully identifying the problems in the system.
This is both bad and good news. Bad, naturally, because it has exposed a very real risk for all Ethereum-based endeavours and initiatives while still pointing in the way of a problem that needs and hopefully can be fixed.
Another serious problem was that smart contracts were not created by user but by another entity and 60% of all contracts have not been interacted with, which can read in only one distinguishable way – there is a serious monopoly over the ecosystem, meaning that users may not be in control as advertised.
This revelation, though, will have a very real effect on the popularity of the cryptocurrency. Ethereum was long been advertised as the safest, lighter, more agile brother of Bitcoin, and now all of this is at a risk of being dashed in one single report.
Given the low diversity of small contracts on Ethereum, the whole blockchain ecosystem could basically collapse if a coordinated and massive attack is directed. This finding was also quickly qualified as “high-profile bugs”, although in our opinion it should receive a “Doomsday” status.
An Owner on the Ropes
Now the platform is coming under serious questioning. The developer, Vitalik Buterin, has been one of the most loved cryptocurrency entrepreneurs for his openness and ability to craft a product that is accessible and easy to use.
However, the present problem needs quick addressing. With Ethereum’s value now standing at $20.6, exploiting the buggy code could have serious implications for the trust in the crypto industry, and very likely the blockchain solutions available today, even though the latter have been held in high esteem by the majority of community members.
Ethereum was already the victim of serious hacking back in April and August and apparently the vulnerabilities of the system are slowly becoming apparent to a larger crowd as we speak. Patching up the security issues must be of the utmost importance to everyone involved in the sector.
However, to achieve that level of security, there will be serious call for addressing the problem head on. Organizing hackathons could help, for example, as it would pool the efforts of skilled hackers into solving important problems.
However, if the problem is let to fester, the darker scenario is likely to come to pass – hackers may already be exploiting weakness in the global blockchain system without anyone actually realizing. With this in mind, it’s worth addressing the problem as quickly and as soon as humanly possible.
Why Blockchain Must Beat On
From all the different technologies related to cryptocurrency, blockchain has been the most successful and well-received one. It has been utilized as a system that allows business to beat on without actually having to worry about costs of operations.
Blockchain automates it all and nobody has to go through the red tape, though a backup is never too bad of an idea to have. If hackers get into the blockchain, though, they could potentially steal valuable information, which will allow them to sway markets or even sabotage the operations, although in most cases – they just steal the data and sell it off to the highest bidder on the dark web.
The Blockchain, however, cannot be left endangered. If this means to publicly address a very serious problem with Ethereum, this should be done.
The report made has not only highlighted a problem. It also pointed hackers in the way of a new exploit that may quickly turn sore for many of the participants in the blockchain industry whose number is growing quickly.