Blockchain developers confront a wide array of security challenges. They must also adhere to emerging blockchain regulation established by government legislation. Let’s examine a few of the challenges that need to be addressed in 2019 and beyond.
Protocol Backdoors/ Rogue Developers
One uncommon yet highly concerning issue with blockchains is the possibility of massive, unplanned token issuances. The most prominent example of this occurred in October 2018 with Oyster Protocol (PRL). The project founder and chief developer, known as Bruno Block, decided to exit scam by emptying $300,000 of PRL from a platform smart contract backdoor and then selling it on KuCoin.
This case study demonstrates a major security flaw of blockchains for three primary reasons. First, no one knew that Bruno Block had the ability to do this without warning. Second, this showed that it’s possible for one individual to take down the entire value of a cryptocurrency project. Finally, this created quite an uproar due to the fact that…