Unit 1 Blk

Blockchain and Smart Contract Fundamentals: Introduction to Blockchain, Importance of

Blockchain, need of Blockchain, types of blockchain, Decision Tree, Consensus Mechanism
Cryptography, Hashing, and Digital Signatures: Introduction, Hashing, Hash Function
Characteristics, Digital Signatures, Data Encryption, Denial of Serviceman-in-The-Middle Attack,
System Resiliency, Infrastructure
Hardening.

1. Introduction to Blockchain
Blockchain is a decentralized, distributed, and immutable digital ledger technology that records
transactions across multiple computers in a secure, transparent, and tamper-resistant manner. Each
transaction is stored in a "block," and these blocks are linked together in a chronological "chain,"
hence the name "blockchain." Initially popularized by Bitcoin in 2008, blockchain has evolved into
a versatile technology with applications far beyond cryptocurrencies.

Key Features of Blockchain:

• Decentralization: Unlike traditional centralized systems (e.g., banks or databases),
blockchain operates on a peer-to-peer (P2P) network where no single entity has control.
Each participant (node) in the network maintains a copy of the ledger.
• Immutability: Once a transaction is recorded in a block and added to the chain, it cannot be
altered or deleted, ensuring a permanent and tamper-proof record.
• Transparency: All transactions are visible to authorized participants in the network,
promoting trust and accountability.
• Security: Blockchain uses cryptographic techniques (e.g., hashing, digital signatures) to
secure data, making it highly resistant to hacking or unauthorized changes.
• Consensus Mechanisms: To validate transactions and add them to the blockchain, nodes
must agree through consensus algorithms like Proof of Work (PoW), Proof of Stake (PoS),
or others, ensuring trust in a trustless environment.
• Smart Contracts: Self-executing contracts with predefined rules encoded on the
blockchain, automating processes without intermediaries (e.g., Ethereum’s smart contracts).

How Blockchain Works:

1. Transaction Initiation: A user initiates a transaction (e.g., transferring cryptocurrency,
recording a contract).
2. Block Creation: The transaction is grouped with others into a block, which includes a
timestamp, transaction details, and a cryptographic hash of the previous block.
3. Validation: Nodes in the network validate the block using a consensus mechanism.
4. Block Addition: Once validated, the block is added to the blockchain, and all nodes update
their copies of the ledger.
5. Distribution: The updated ledger is distributed across the network, ensuring all participants
have the same version.
Example:
Bitcoin’s blockchain records cryptocurrency transactions, ensuring that double-spending is
prevented and ownership is verifiable without a central authority.

2. Importance of Blockchain
Blockchain technology has gained prominence due to its transformative potential across various
industries. Its importance lies in its ability to address critical challenges in traditional systems, such
as trust, security, and efficiency.

Key Reasons Blockchain is Important:

• Enhanced Security: Blockchain’s cryptographic mechanisms (e.g., SHA-256 hashing) and
decentralized structure make it highly secure against data breaches and cyberattacks.
Tampering with a single block requires altering all subsequent blocks across the network,
which is computationally infeasible.
• Transparency and Trust: The transparent nature of blockchain allows all authorized
participants to view transaction histories, fostering trust in systems where intermediaries
(e.g., banks, notaries) are traditionally required.
• Elimination of Intermediaries: By enabling peer-to-peer transactions, blockchain reduces
reliance on middlemen, lowering costs and speeding up processes (e.g., cross-border
payments without banks).
• Data Integrity: Immutability ensures that records cannot be altered retroactively, making
blockchain ideal for applications requiring audit trails, such as supply chain tracking or
financial reporting.
• Efficiency and Automation: Smart contracts automate complex processes, reducing manual
intervention and errors. For example, in real estate, smart contracts can automate property
transfers upon payment.
• Global Accessibility: Blockchain enables access to services (e.g., financial systems, digital
identities) for unbanked populations, especially in developing regions, by leveraging
decentralized networks.
• Innovation Catalyst: Blockchain underpins emerging technologies like decentralized
finance (DeFi), non-fungible tokens (NFTs), and Web3, driving innovation in finance, art,
gaming, and more.

Real-World Impact:
• Finance: Blockchain enables faster, cheaper cross-border payments (e.g., Ripple) and
decentralized lending platforms (e.g., Aave).
• Supply Chain: Companies like IBM use blockchain to track goods transparently, reducing
fraud and ensuring authenticity (e.g., tracking pharmaceuticals).
• Healthcare: Blockchain secures patient records, ensuring privacy and interoperability
between healthcare providers.
3. Need for Blockchain
The need for blockchain arises from limitations in traditional centralized systems, which often
suffer from inefficiencies, vulnerabilities, and lack of trust. Blockchain addresses these challenges
by offering a decentralized, secure, and transparent alternative.

Key Reasons for the Need for Blockchain:

• Centralized System Vulnerabilities: Centralized databases (e.g., bank servers) are single
points of failure, prone to hacking, data breaches, or mismanagement. Blockchain’s
decentralized nature distributes data across nodes, reducing these risks.
• Lack of Trust in Intermediaries: Traditional systems rely on intermediaries (e.g., banks,
clearinghouses) to validate transactions, which can introduce delays, costs, and potential for
corruption. Blockchain eliminates intermediaries, enabling trustless systems.
• High Transaction Costs: Cross-border payments or intermediary-driven processes (e.g.,
real estate transactions) often incur high fees. Blockchain reduces costs by enabling direct
P2P transactions.
• Data Manipulation Risks: Centralized systems allow administrators to alter or delete
records, leading to fraud or errors. Blockchain’s immutability ensures records are tamper-
proof.
• Inefficiencies in Legacy Systems: Manual processes, such as reconciling financial records
or verifying supply chain data, are time-consuming. Blockchain automates these processes
through smart contracts and real-time updates.
• Global Inclusion: Over 1.4 billion people globally lack access to financial services due to
centralized banking requirements. Blockchain-based solutions (e.g., cryptocurrencies,
decentralized IDs) provide access to underserved populations.
• Counterfeit and Fraud Prevention: Industries like supply chain, luxury goods, and
pharmaceuticals face issues with counterfeiting. Blockchain’s transparent tracking ensures
authenticity and traceability.
• Regulatory Compliance: Blockchain provides auditable records, helping organizations
comply with regulations in industries like finance and healthcare.

Example Scenarios:
• Cross-Border Payments: Traditional international transfers take days and incur high fees.
Blockchain-based solutions like Stellar or Ripple process transactions in seconds at lower
costs.
• Digital Identity: Centralized ID systems are prone to identity theft. Blockchain-based IDs
(e.g., Self-Sovereign Identity) give users control over their data, reducing risks.

4. Types of Blockchain
Blockchain systems are categorized based on their accessibility, control, and use cases. The four
primary types are Public, Private, Consortium, and Hybrid blockchains.
1. Public Blockchain
• Definition: A fully decentralized blockchain open to anyone, allowing anyone to participate
as a node, read, write, or validate transactions without permission.
• Characteristics:
• Permissionless: No central authority controls access.
• Transparent: All transactions are publicly visible.
• High security: Large networks make tampering difficult.
• Slower and resource-intensive: Due to consensus mechanisms like PoW or PoS.
• Use Cases:
• Cryptocurrencies (e.g., Bitcoin, Ethereum).
• Decentralized applications (DApps) like DeFi platforms or NFT marketplaces.
• Examples: Bitcoin, Ethereum, Cardano.
• Pros:
• High transparency and trust.
• Resistant to censorship.
• Inclusive, open to all participants.
• Cons:
• Scalability issues (e.g., Bitcoin processes ~7 transactions per second).
• High energy consumption (e.g., PoW in Bitcoin).
• Limited privacy for sensitive data.

2. Private Blockchain
• Definition: A permissioned blockchain controlled by a single organization, where access is
restricted to authorized participants.
• Characteristics:
• Centralized control: One entity governs the network.
• Faster transactions: Fewer nodes result in quicker consensus.
• Higher privacy: Only authorized users can view or participate.
• Less decentralized: Relies on the governing entity.
• Use Cases:
• Internal business processes (e.g., supply chain management).
• Financial institutions for private record-keeping.
• Examples: Hyperledger Fabric, R3 Corda.
• Pros:
• High efficiency and scalability.
• Greater control over data privacy.
• Lower energy consumption.
• Cons:
• Less transparent due to restricted access.
• Centralized control reduces trust compared to public blockchains.

3. Consortium Blockchain
• Definition: A semi-decentralized blockchain managed by a group of organizations, where
multiple entities share control and access.
• Characteristics:
 • Permissioned: Only pre-approved entities can participate.
• Collaborative: Balances decentralization with controlled access.
• Faster than public blockchains but slower than private ones.
• Use Cases:
• Cross-organizational collaboration (e.g., banking consortia, supply chain networks).
• Industry-specific applications (e.g., trade finance, healthcare data sharing).
• Examples: Hyperledger, Quorum, R3 Corda.
• Pros:
• Balances decentralization and control.
• Efficient for collaborative industries.
• Enhanced privacy compared to public blockchains.
• Cons:
• Complex governance due to multiple stakeholders.
• Less open than public blockchains.

4. Hybrid Blockchain
• Definition: A blockchain combining elements of public and private blockchains, allowing
controlled access to certain data while maintaining public transparency for others.
• Characteristics:
• Selective transparency: Some data is public, while other data is restricted.
• Flexible: Can be tailored to specific use cases.
• Permissioned for certain operations, permissionless for others.
• Use Cases:
• Government services (e.g., public records with private citizen data).
• Supply chains with public tracking and private pricing details.
• Examples: Dragonchain, IBM Blockchain.
• Pros:
• Combines benefits of public and private blockchains.
• Customizable for diverse applications.
• Balances transparency and privacy.
• Cons:
• Complex to implement and manage.
• May lack full decentralization or transparency.

Summary Table of Blockchain Types

Type Access Decentralization Speed Use Cases Examples
Cryptocurrencies,
Public Open to all Fully decentralized Slower Bitcoin, Ethereum
DApps
Internal business Hyperledger
Private Restricted Centralized Fast
processes Fabric, R3 Corda
Restricted Industry Quorum,
Consortium Semi-decentralized Moderate
(group) collaborations Hyperledger
Partially Government, supply Dragonchain, IBM
Hybrid Mixed Varies
decentralized chain Blockchain
Decision Tree Notes
Introduction to Decision Tree
A Decision Tree is a predictive modeling tool used in machine learning and decision-making to map
decisions and their outcomes in a tree-like structure. It consists of:
• Root Node: Starting point of the decision process.
• Internal Nodes: Conditions or criteria (e.g., "Is income > $50K?").
• Branches: Possible outcomes of a condition.
• Leaf Nodes: Final decisions or predictions.
Decision trees are used for classification (categorical outcomes) and regression (numerical
outcomes).

Importance of Decision Tree

• Interpretability: Easy to visualize and explain to non-technical users.
• Non-Linear Modeling: Captures complex relationships in data.
• Versatile: Supports both classification and regression tasks.
• Feature Importance: Identifies key variables influencing outcomes.
• Robustness: Handles mixed data types and outliers effectively.
• Applications: Finance (credit scoring), healthcare (diagnosis), marketing (customer
segmentation).

Need for Decision Tree

• Complex Decisions: Simplifies multi-variable decision processes.
• Transparency: Offers explainable models for regulatory compliance.
• Mixed Data Handling: Processes numerical and categorical data without preprocessing.
• Automation: Enables real-time decision automation.
• Foundation for Ensembles: Forms the basis for advanced models like Random Forest.

Types of Decision Trees

1. Classification Trees: Predict categorical outcomes (e.g., spam detection).
2. Regression Trees: Predict continuous outcomes (e.g., house prices).
3. Pruned Trees: Simplified to reduce overfitting.
4. Unpruned Trees: Full trees capturing all patterns, prone to overfitting.
5. Ensemble Trees: Combine multiple trees (e.g., Random Forest, Gradient Boosting).

Challenges
• Overfitting: Deep trees may not generalize well.
• Instability: Sensitive to small data changes.
• Bias: May favor dominant classes in imbalanced datasets.
Consensus Mechanism Notes
Introduction to Consensus Mechanism
A consensus mechanism is a protocol in blockchain and distributed systems ensuring all nodes
agree on the ledger’s state. It validates transactions, prevents double-spending, and maintains trust
in decentralized networks.
• Purpose: Ensures data integrity, security, and consistency without a central authority.
• Example: Bitcoin’s Proof of Work (PoW) uses computational puzzles to validate
transactions.

Importance of Consensus Mechanism

• Trustless Systems: Enables agreement among untrusted parties.
• Security: Protects against attacks (e.g., 51% attacks).
• Decentralization: Distributes control across nodes.
• Data Consistency: Maintains a single, consistent ledger.
• Incentives: Rewards honest participation (e.g., mining rewards).
• Applications: Cryptocurrencies, smart contracts, enterprise blockchains.

Need for Consensus Mechanism

• Double-Spending Prevention: Ensures assets are not spent twice.
• Data Integrity: Maintains immutability of the blockchain.
• Conflict Resolution: Resolves conflicting transactions in distributed systems.
• Decentralization: Eliminates reliance on intermediaries.
• Byzantine Fault Tolerance: Handles malicious or faulty nodes.
• Scalability: Balances speed, security, and decentralization for various use cases.

Types of Consensus Mechanisms

1. Proof of Work (PoW):
• Miners solve puzzles to validate blocks.
• Examples: Bitcoin, Ethereum (pre-2022).
• Pros: High security, proven reliability.
• Cons: Energy-intensive, slow.
2. Proof of Stake (PoS):
• Validators stake cryptocurrency to create blocks.
• Examples: Ethereum (post-2022), Cardano.
• Pros: Energy-efficient, scalable.
• Cons: Risk of centralization.
3. Delegated Proof of Stake (DPoS):
• Stakeholders vote for delegates to validate.
• Examples: EOS, Tron.
• Pros: Fast, efficient.
 • Cons: Semi-centralized.
4. Practical Byzantine Fault Tolerance (PBFT):
• Nodes communicate to tolerate faulty nodes.
• Examples: Hyperledger Fabric, Stellar.
• Pros: Fast for small networks.
• Cons: Not suited for public blockchains.
5. Proof of Authority (PoA):
• Trusted nodes validate based on reputation.
• Examples: VeChain, Ethereum testnets.
• Pros: Fast, enterprise-friendly.
• Cons: Centralized.

Challenges
• Scalability: Slow mechanisms limit transaction throughput.
• Energy: PoW consumes significant resources.
• Centralization: Some mechanisms favor wealthy or trusted nodes.
• Security: Trade-offs between speed and attack resistance.

Detailed Notes on Cybersecurity Topics with

Blockchain Security Context
1. Introduction to Cybersecurity Concepts
Cybersecurity is critical for protecting systems, networks, and data from unauthorized access,
attacks, or damage. In the context of blockchain, cybersecurity ensures the integrity,
confidentiality, and availability of decentralized systems, which are often used for financial
transactions, smart contracts, and data storage.
• Key Objectives:
• Confidentiality: Protecting sensitive data (e.g., private keys, transaction details) in
blockchain networks.
• Integrity: Ensuring transactions and smart contracts are not tampered with.
• Availability: Keeping blockchain nodes and services operational despite attacks.
• Authenticity: Verifying the identity of participants in permissioned blockchains.
• Non-repudiation: Ensuring transactions cannot be denied once recorded on the
blockchain.
• Blockchain Context:
• Blockchain’s decentralized nature reduces single points of failure but introduces
unique challenges, such as securing private keys and preventing double-spending.
• Cybersecurity mechanisms like hashing, digital signatures, and encryption are
foundational to blockchain’s trust model.
 • Importance: With blockchains handling billions in assets (e.g., Bitcoin, Ethereum), robust
security is essential to prevent theft, fraud, or network disruptions.

2. Hashing
Hashing transforms input data into a fixed-size hash value using a hash function, ensuring data
integrity and enabling efficient verification in blockchain systems.
• Key Features:
• Deterministic: Critical for blockchain, where the same transaction data must
produce the same hash across all nodes.
• Fixed Output Size: Enables compact storage of transaction data in blocks.
• One-Way Function: Prevents reverse-engineering of transaction details or private
keys.
• Collision Resistance: Ensures no two transactions produce the same hash,
preventing fraud.
• Common Hash Functions in Blockchain:
• SHA-256: Used in Bitcoin for transaction hashing and proof-of-work.
• Keccak-256: Used in Ethereum for hashing transactions and smart contracts.
• SHA-3: Emerging standard for newer blockchains due to enhanced security.
• Blockchain Applications:
• Transaction Integrity: Hashes link transactions in a block, forming a tamper-
evident chain.
• Merkle Trees: Combine transaction hashes into a single root hash for efficient
verification.
• Proof-of-Work: Miners hash block data to find a nonce meeting difficulty
requirements.
• Blockchain Challenges:
• Weak hash functions (e.g., MD5) are unsuitable for blockchain due to collision
vulnerabilities.
• Quantum computing could threaten hash functions like SHA-256, requiring post-
quantum alternatives.

3. Hash Function Characteristics

A good hash function is critical for blockchain security, ensuring the immutability and
trustworthiness of the ledger.
• Pre-image Resistance: Prevents attackers from reconstructing transaction data or private
keys from a hash.
• Second Pre-image Resistance: Ensures an attacker cannot create a different transaction
with the same hash, preventing double-spending.
• Collision Resistance: Critical for Merkle trees, where collisions could allow fraudulent
transactions to be inserted.
 • Fast Computation: Enables rapid transaction verification by blockchain nodes.
• Avalanche Effect: Ensures small changes (e.g., altering a transaction) produce a completely
different hash, making tampering detectable.
• Deterministic: Ensures all nodes agree on the same hash for a given transaction.
• Fixed Output Length: Simplifies storage and verification in blockchain data structures.
• Blockchain Security Considerations:
• Hash functions like SHA-256 are secure today but must be monitored for quantum
vulnerabilities.
• Blockchain protocols must adopt collision-resistant functions to maintain ledger
integrity.

4. Digital Signatures
Digital signatures use asymmetric cryptography to verify the authenticity and integrity of
blockchain transactions, ensuring non-repudiation.
• How It Works:
1. A user signs a transaction with their private key, creating a digital signature.
2. The transaction’s hash is encrypted with the private key.
3. Nodes verify the signature using the user’s public key, ensuring the transaction is
authentic and unaltered.
• Key Components:
1. Private Key: Must be securely stored to prevent transaction fraud.
2. Public Key: Shared across the blockchain network for verification.
3. Hash Function: Ensures the transaction’s integrity.
• Blockchain Applications:
1. Transaction Signing: Every Bitcoin or Ethereum transaction is signed to prove
ownership.
2. Smart Contracts: Signatures verify the authenticity of contract execution requests.
3. Multi-Signature Wallets: Require multiple signatures for enhanced security (e.g., 2-
of-3 multisig).
• Blockchain Challenges:
1. Private key theft can lead to irreversible fund loss.
2. Weak signature algorithms (e.g., ECDSA vulnerabilities) could allow transaction
forgery.
3. Requires secure key management (e.g., hardware wallets, cold storage).

5. Data Encryption
Data encryption protects sensitive blockchain data, such as private keys and off-chain data, ensuring
confidentiality during storage and transmission.
• Types of Encryption:
 • Symmetric Encryption (e.g., AES):
• Used for encrypting off-chain data (e.g., wallet backups).
• Fast but requires secure key sharing in blockchain networks.
• Asymmetric Encryption (e.g., RSA, ECC):
• Used in blockchain for key exchange and digital signatures (e.g., ECDSA in
Bitcoin).
• Slower but critical for secure peer-to-peer communication.
• Blockchain Applications:
• Private Key Protection: Encrypting keys stored on devices or in wallets.
• Secure Communication: Encrypting data between nodes in permissioned
blockchains.
• Zero-Knowledge Proofs: Techniques like zk-SNARKs (used in Zcash) enable
private transactions without revealing data.
• Blockchain Challenges:
• Public blockchains store data transparently, limiting encryption’s role on-chain.
• Key management is critical; lost keys result in permanent data or asset loss.
• Quantum computing may break algorithms like ECC, requiring quantum-resistant
encryption.

6. Denial of Service (DoS) Attack

A DoS attack disrupts blockchain availability by overwhelming nodes, miners, or smart contracts
with excessive requests or malicious transactions.
• Types in Blockchain:
• Network Flooding: Overloading nodes with transaction spam to slow down the
network.
• Smart Contract Attacks: Exploiting gas-intensive operations in Ethereum to halt
contract execution.
• Mining Attacks: Targeting miners with fake transactions to disrupt block creation.
• Impact on Blockchain:
• Delays transaction confirmations, affecting user trust (e.g., Bitcoin mempool
flooding).
• Increases gas fees in Ethereum, pricing out legitimate users.
• Disrupts decentralized applications (dApps) relying on blockchain availability.
• Mitigation in Blockchain:
• Transaction Fees: Higher fees prioritize legitimate transactions (e.g., Ethereum’s gas
model).
• Rate Limiting: Nodes reject excessive requests from a single source.
• Proof-of-Stake (PoS): Less resource-intensive than proof-of-work, reducing DoS
vulnerability.
• Decentralization: Distributes load across many nodes, improving resilience.
• Blockchain Challenges:
• Public blockchains are open to anyone, making it hard to filter malicious traffic.
 • DDoS attacks using botnets can overwhelm even decentralized networks.

7. Man-in-the-Middle (MitM) Attack

A MitM attack intercepts blockchain communications (e.g., between nodes or wallets) to steal data
or manipulate transactions.
• How It Works in Blockchain:
• Attackers intercept wallet-to-node communication to steal private keys or alter
transaction data.
• Common vectors: Compromised Wi-Fi, fake nodes, or DNS spoofing.
• Example: Redirecting a Bitcoin transaction to an attacker’s address.
• Blockchain Examples:
• Wallet Attacks: Stealing private keys during wallet synchronization.
• Node Spoofing: Fake nodes trick users into broadcasting transactions to attackers.
• Exchange Hacks: Intercepting API calls to manipulate trades.
• Mitigation in Blockchain:
• TLS/SSL: Secures node-to-node communication in permissioned blockchains.
• Digital Signatures: Prevent transaction tampering, as signatures are verified by
nodes.
• Hardware Wallets: Store private keys offline, reducing MitM risks.
• Peer Authentication: Verify node identities in permissioned blockchains.
• Blockchain Challenges:
• Public blockchains rely on untrusted nodes, increasing MitM risks.
• Users on unsecured networks (e.g., public Wi-Fi) are vulnerable to key theft.

8. System Resiliency
System resiliency in blockchain ensures the network remains operational despite attacks, node
failures, or scalability issues.
• Key Principles:
• Redundancy: Multiple nodes maintain copies of the blockchain ledger.
• Fault Tolerance: Consensus mechanisms (e.g., PoW, PoS) tolerate node failures.
• Scalability: Layer-2 solutions (e.g., Lightning Network) handle high transaction
volumes.
• Recovery: Backup nodes and archival data ensure quick recovery from disruptions.
• Blockchain Applications:
• Consensus Mechanisms: Byzantine Fault Tolerance (BFT) ensures agreement
despite malicious nodes.
• Sharding: Divides the blockchain into smaller pieces to improve scalability (e.g.,
Ethereum 2.0).
• Off-Chain Solutions: Sidechains and state channels reduce mainnet load.
• Blockchain Challenges:
 • High decentralization increases latency, impacting performance.
• Balancing resiliency with energy efficiency (e.g., PoW vs. PoS).
• 51% attacks in PoW blockchains can compromise resiliency.

9. Infrastructure Hardening
Infrastructure hardening secures blockchain nodes, wallets, and smart contracts to reduce
vulnerabilities and protect the network.
• Key Practices:
• Node Security: Update node software and apply security patches to prevent exploits.
• Wallet Protection: Use hardware wallets or cold storage to secure private keys.
• Smart Contract Auditing: Review code for vulnerabilities (e.g., reentrancy attacks
in Ethereum).
• Network Segmentation: Isolate critical nodes in permissioned blockchains.
• Access Control: Restrict node access using strong authentication.
• Monitoring: Track suspicious transactions or node behavior.
• Blockchain Examples:
• Securing Bitcoin full nodes with firewalls and restricted ports.
• Auditing DeFi smart contracts to prevent exploits like flash loan attacks.
• Using multisig wallets to prevent unauthorized access.
• Benefits in Blockchain:
• Prevents hacks that exploit node or smart contract vulnerabilities.
• Enhances trust in decentralized applications.
• Ensures compliance in permissioned blockchains (e.g., financial regulations).
• Blockchain Challenges:
• Open-source blockchain code is visible to attackers, increasing exploit risks.
• Smart contract bugs are immutable once deployed, requiring thorough pre-
deployment testing.
• Resource constraints for running secure full nodes.

Conclusion
In the context of blockchain, hashing, digital signatures, and encryption form the cryptographic
backbone, ensuring transaction integrity, authenticity, and confidentiality. Defending against DoS
and MitM attacks requires robust node and network security, while system resiliency and
infrastructure hardening ensure blockchain networks remain operational and secure. These practices
are critical for protecting decentralized systems handling valuable assets and sensitive data.
Blockchain’s unique challenges—such as public ledger transparency and immutable smart contracts
—require tailored cybersecurity approaches to maintain trust and reliability.