Blockchain and distributed ledger technologies (DLT) are applied in areas ranging from medical records, product identifiers to land registrations, academic degrees and insurance contracts.
Blockchain promises to empower and empower data for everyone in an era where data has never been greater. However, this requires trust in technology and believes that technology always does what it has to do.
The paradox is that blockchain eliminates the need for middlemen - notaries, insurance companies and bank employees - by asking people to put their trust in technology. But can we trust technology when something goes wrong because of insecurity?
The abuse of the bitcoin security flaw in 2010 allowed the creation of 184 billion bitcoins in a single transaction, although this problem was quickly fixed.
More recently, in 2019, the CEO of a crypto asset management fund died, along with information on access to the cryptocurrencies he was managing, worth. more than 150 million USD. That money cannot be recovered.
That CEO stole the money before he left, and the company failed to carry out proper checks and balances to prevent such a situation.
Blockchain is a new and not simple technology. It may take years for the blockchain community to meet security standards to reduce the frequency of breaches.
According to the WEF, it is necessary first to develop a team of security-minded blockchain developers. This requires the educational program will have to start with programming classes right from high schools, to universities with mandatory blockchain security courses.
Next, it is necessary to educate users about the security risks they are facing, how to minimize risks effectively and at a low cost. In order to do that, public awareness campaigns and public-private partnerships will be needed when switching to blockchain technology.