Top 5 Blockchain Security Issues in 2025

Blockchain
technology
undoubtedly
has
many
benefits,
especially
cryptographic
security.
However,
it
also
has
several
issues.
Let’s
discuss
the
top
blockchain
security
issues!

Blockchain
technology
has
been
a
prominent
example
of
transforming
the
tenets
of
security
in
financial
transactions
and
information
exchange.
It
offers
a
unique
structure
for
data
accompanied
by
in-built
security
qualities.
Blockchain
relies
on
the
principles
of

consensus,

decentralization,
and

cryptography
for
ensuing
trust
in
transactions.
However,
blockchain
security
issues
have
continued
to
trouble
many
organizations
and
early
adopters. 

Even
well-established
blockchain
startups
experience
troubles
in
blockchain
security.
Furthermore,
many
unwanted
risks
keep
emerging
in
the
field
of

blockchain
security
and
create
a
prominent
question
–
‘Is
Blockchain
really
secure?’
with
formidable
doubt
regarding
security
on
the
blockchain.
The
following
discussion
aims
to
dive
into
a
detailed
overview
of
the
various
issues
pertaining
to
blockchain
security. 

Blockchain
is
Essential
Now
More
Than
Ever

The
world
wants
to
dive
headfirst
into
the
next
wave
of
digital
transformation,
especially
with
blockchain
technology.
Blockchain
has
been
able
to
attract
attention
from
all
corners
for
its
unique
functionalities.
It
is
suitable
for
different
use
cases.
As
a
matter
of
fact,
it
has
turned
into
a
credible
approach
for
introducing
better
security
and
transparency
in
technology
solutions.
In
order
to
have
blockchain
security
explained
properly,
you
need
to
get
a
brief
understanding
of
what
blockchain
is. 

Blockchain
technology
basically
involves
the
storage
of
different
bits
of
digital
information,
known
as
blocks,
in
a
public
database.
The
blocks
of
information
have
cryptographically
secure
links
between
them.
Blockchain
has
become
popular
largely
because
of
the
limitation
on
‘double
spending.’
Blockchain
does
not
allow
the
use
of
the
same
currency
on
two
different
transactions. 

Now,
let
us
take
a
brief
overview
of
the
components
in
blockchain
before
finding
out
blockchain
security
vulnerabilities.
The
blocks
include
three
fundamental
information
pieces
such
as,

• 
  Transactional
  information,
  including
  the
  date,
  amount,
  and
  time
  of
  purchase
• 
  Unique
  algorithmic
  hash
  or
  code
  for
  differentiating
  one
  block
  from
  others
• 
  Identities
  of
  every
  party
  associated
  with
  the
  transaction

It
is
possible
to
add
new
blocks
subsequently
to
a
blockchain
for
new
transactions.
The
block
receives
a
unique
identifying
code
after
the
validation
of
a
new
transaction. 

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How
Does
Blockchain
Work?

The
next
important
concern
in
the
study
of
blockchain
security
issues
refers
to
the

working
of
blockchain.
The
primary
foundation
in
the
working
of
blockchain
is
decentralization.

Distributed
ledger
technology
enables
structuring
data
into
blocks,
with
each
block
including
one
transaction
or
multiple
transactions.
New
blocks
connect
to
other
previous
blocks
in
a
cryptographic
chain.
Most
important
of
all,
it
is
difficult
to
tamper
with
the
chain
of
records
or
any
individual
record,
i.e.,
block.
So,
this
is
a
clear
indication
of
reliable
levels
of
blockchain
security. 

All
the
transactions
in
the
blocks
have
to
be
validated
and
verified
through
a

consensus
mechanism.
Therefore,
a
consensus
mechanism
can
ensure
that
all
transactions
and
true
and
correct.
So,
it
is
quite
clear
that
blockchain
definitely
offers
assurance
for
the
integrity
of
transactions
and
associated
information. 

If
you
are
still
wondering,
‘is
blockchain
really
secure?’
then
you
must
also
take
a
look
at
decentralization.
Blockchain
helps
in
achieving
decentralization
through
the
involvement
of
members
throughout
a
distributed
network.
Interestingly,
the

decentralization
with
blockchain
ensures
the
lack
of
a
single
point
of
failure.
Therefore,
any
specific
user
could
not
change
the
whole

record
of
transactions. 

Get
familiar
with
the
terms
related
to
blockchain
with Blockchain
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Flashcards.

Difference
in
Blockchain
Security
According
to
Blockchain
Type

The
difference
in
blockchain
security
for

public
and
private
blockchain
is
also
another
highlight
of
blockchain
security
explained
properly.
Blockchain
networks
can
have
different
implications
regarding
the
privileges
for
participation
and
data
access.
Therefore,
you
can
find
two
different
types
of
labeling
for
blockchain
networks.
Depending
on
the
privileges
for
participation,
blockchain
networks
can
be
private
or
public.
On
the
other
hand,
the
methods
for
participants
to
gain
access
to
the
network
determine
whether
the
blockchain
network
is

permissioned
or
permissionless. 

• 
  
  Public
  blockchain
  networks
  are
  open
  and
  could
  allow
  any
  user
  to
  join
  while
  ensuring
  the
  anonymity
  of
  participants.
  Public
  blockchain
  leverages
  internet-connected
  computers
  for
  validating
  transactions
  alongside
  achieving
  consensus. 
• 
  
  Private
  blockchain
  networks
  depend
  on
  identity
  for
  confirming
  membership
  and
  access
  privileges.
  In
  addition,
  they
  allow
  the
  participation
  of
  only
  the
  familiar
  organizations. 

The
understanding
of
security
concerns
with
different

types
of
blockchain
networks
promotes
better
scope
for
learning
about
blockchain
security
issues.
The
evaluation
of
type
of
blockchain
network
suited
to
your
business
goals
can
help
in
making
a
better
selection.
For
example,
private
and
permissioned
networks
could
have
tighter
controls
for
regulatory
and
compliance
concerns.
On
the
contrary,
public
and
permissionless
networks
can
enable
better
distribution
and
decentralization.

Is
Blockchain
Really
Secure?

All
descriptions
of
blockchain
technology
point
out
towards
cryptography,
immutability,
and
decentralization.
With
cryptographic
security
and
the
assurance
that
no
one
can
modify
data
without
the
knowledge
of
other
participants,
blockchain
definitely
seems
secure.
Blockchain
can
give
you
a
tamper-proof
account
of
transactions. 

However,
this
does
not
mean
that
blockchain
is
not
vulnerable
to
cyber-attacks
and
security
fraud.
People
with
malicious
intent
could
exploit
the
blockchain
security
vulnerabilities
to
their
advantage.
Many
such
examples
of
blockchain
attacks
have
made
news
from
time
to
time.
Here
are
some
of
the
notable
incidents
which
expose
the
most
troublesome
aspect
of
blockchain. 

• 
  A
  Case
  of
  Missing
  Keys

The
theft
of
customers’
Bitcoins
from
Hong
Kong-based
cryptocurrency
exchange,
Bitfinex
shows
that
blockchain
is
not
so
secure
after
all.
The
estimated
cost
of
Bitcoins
was
around
$73
million.
Experts
pointed
out
that
stolen
private
keys
or
personal

digital
signatures
were
the
most
probable
cause
for
the
event. 

• 
  Exploited
  Code

The
next
notable
event
showcasing
security
and
privacy
issues
of
blockchain
technology
refers
to
the

Decentralized
Autonomous
Organization
(DAO).
It
is
a
venture
capital
fund
that
works
on
the
foundation
of
a
decentralized
blockchain.
Interestingly,
many
consider
DAO
to
be
inspired
by
Bitcoin. 

All
the
names
and
still
hackers
robbed
the
fund
in
an
amount
exceeding
$60
million
of

Ether.
The
blow
was
quite
hard
for
DAO,
as
it
accounted
for
almost
one-third
of
its
total
value.
Code
exploitation
served
as
the
primary
culprit
for
this
event
and
rightfully
showed
the
vulnerability
of
blockchain. 

• 
  Hacking
  Employee
  System

Another
example
of
blockchain
security
issues
is

Bithumb.
It
is
also
one
of
the
biggest
cryptocurrency
exchanges
for

Bitcoin
and
Ethereum.
Hackers
were
able
to
dig
into
data
of
around
30,000
users
alongside
stealing
Bitcoin
worth
$870,000.
Interestingly,
the
core
servers
were
intact,
and
a
compromised
employee
computer
was
the
primary
culprit.
However,
it
does
not
negate
the
fact
that
blockchain
technology
has
some
pitfalls
in
security. 

Based
on
all
these
aspects,
we
can
definitely
establish
that
blockchain
isn’t
so
secure
after
all.
Therefore,
it
is
important
to
understand
every
detail
that
influences
blockchain
security.
So,
let
us
take
a
look
at
some
of
the
top
blockchain
security
vulnerabilities
in
2025.

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Notable
Blockchain
Security
Issues
in
2025

Many
people
are
not
mistaken
when
they
assume
blockchain
is
inherently
secure.
However,
blockchain
also
has
some
drawbacks
when
it
comes
to
security.
Blockchain
is
definitely
helpful
for
businesses,
although
with
a
heavier
downside
due
to
its
particular
security
issues.
Without
taking
any
further
time,
let
us
go
through
some
of
the
top
threats
to
blockchain
security
in
2025.

1.
51%
Attacks

Computing
power
is
quite
crucial
for
gaining
majority
control
over
the

hashrate
of
a
blockchain
through
malicious
entities.
Therefore,
compromised
blockchains
could
result
in
the
reversal
of
transactions
alongside
double-spending.
In
2018,
three
renowned
cryptocurrency

platforms
experienced
issues
from
51%
attacks.
The
three
platforms
were

Ethereum
Classic,
ZenCash,
and
Verge.
Furthermore,
enterprises
lost
around
$20
million
dollar
annually
in
recent
times
due
to
51%
attacks. 

If
you
have
to
avoid
blockchain
security
issues
due
to
51%
attacks,
then
you
have
to
be
careful
about
certain
measures.
For
example,
you
can
improve
monitoring
of
mining
pools
and
ensure
a
higher
hash
rate
alongside
refraining
from
the
use
of

Proof-of-Work
(PoW)
consensus
mechanisms. 

2.
Blockchain
Endpoint
Vulnerabilities   

Another
notable
instance
of
security
risks
in
blockchain
security
explained
properly
refers
to
the
vulnerability
of
blockchain
endpoints.
The
security
of
the
blockchain
is
the
talk
of
the
town.
However,
no
one
cares
to
address
the
concerns
in
the
security
of
endpoints
for
blockchain
transactions.
For
example,
Bitcoin
investment
or
trading
could
result
in
a
large
amount
of

Bitcoin
stored
in
a
virtual
savings
account. 

The
actual
blocks
are
safe
against
hackers.
On
the
other
hand,
the
wallet
accounts
are
not
safe.
Furthermore,
many
third-party
vendors
are
also
important
for
facilitating
blockchain
transactions.
Some
of
these
third-party
vendors
include

blockchain
payment
platforms,
payment
processors,
and

smart
contracts.
Such
types
of
third-party
blockchain
vendors
can
increase
vulnerability
to
hacking
due
to
weaker
security
in
apps
and
websites.

3.
Routing
Attacks

The
next
prominent
concern
for
security
and
privacy
issues
of
blockchain
technology
refers
to
routing
attacks.
Blockchain
networks
and
applications
depend
on
the
massive
volume
of
data
transfer
in
real-time.
Now,
hackers
could
easily
intercept
data
during
the
course
of
its
transmission
to
internet
service
providers.
The
dangerous
aspect
of
routing
attacks
in
blockchain
security
lies
in
their
anonymity. 

The
blockchain
participants
could
not
find
out
the
threat
of
routing
attacks
easily
as
everything
appears
normal.
Routing
attacks
are
generally
employed
for
leaking
out
confidential
data
or
extracting
monetary
benefits
without
alarming
network
participants.
Therefore,
it
is
quite
clear
that
routing
attacks
can
be
detrimental
as
they
could
impose
considerable
damage
before
detection. 

4.
Phishing
Attacks

If
you
are
wondering,
‘Is
blockchain
really
secure?’
then
you
need
to
think
of
phishing
attacks.
Phishing
is
one
of
the
most
common
baiting
techniques
used
by
hackers.
It
is
basically
a
scamming
attempt
to
obtain
the
credentials
of
a
user.
Hackers
send
emails
to
wallet
key
owners
by
posing
as
an
authentic,
authoritative
source. 

Such
types
of
emails
request
information
about
user
credentials
through
fake
hyperlinks.
When
hackers
can
access
the
credentials
and
sensitive
information
of
a
user,
the
users,
as
well
as
the
blockchain
network,
are
open
to
subsequent
attacks.
The
growing
number
of
phishing
attacks
in
blockchain
networks
has
created
profound
levels
of
concern
in
recent
times.

5.
Transaction
Privacy
Leakage

Another
formidable
addition
to
blockchain
security
vulnerabilities
in
2025
is
transaction
privacy
leakage.
User
behaviors
are
traceable
on
blockchain
networks.
Therefore,
blockchain
systems
must
safeguard
transaction
privacy
for
users.
Basically,
users
must
assign
a
private
key
for
every
transaction. 

As
a
result,
hackers
could
not
determine
if
a
single
user
is
receiving

cryptocurrency
in
different
transactions.
On
the
contrary,
privacy
protection
in
blockchain
has
not
developed
completely.
Research
shows
that
around
66%
of
sampled
transactions
do
not
have
any
chaff
coins
or
mixins.
Chaff
coins
or
mixins
can
restrict
the
abilities
of
hackers
to
determine
the
association
between
coins
spent
in
the
transaction.

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Final
Verdict 

A
clear
overview
of
the
different
blockchain
security
issues
shows
the
complicacy
in
the
existing
state
of

blockchain
security.
The
awareness
of
vulnerabilities
in
blockchain
security
is
essential
to
create
better
networks
and
systems.
Furthermore,
technical
advancements
such
as
AI-based
solutions
for
infrastructure,
transaction,
and
code
analysis
can
spell
new
trends
in
blockchain
security.

If
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provide
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investment
advice.
Claims
made
in
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article
do
not
constitute
investment
advice
and
should
not
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taken
as
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