In the Pentagon’s latest report, they uncover numerous vulnerabilities in the blockchain.
What happened: The Pentagon has released a report titled Are Blockchains Decentralized, Unintended Centralities in Distributed Ledgers. The report reveals a plethora of concerns about the crypto industry and other sectors intertwined with blockchain technology such as big tech, fintech, and security.
Trail of Bits was commissioned by the Defense Advanced Research Projects Agency (DARPA) to study the “decentralized” nature of blockchains. The research mainly focuses on the Bitcoin BTC/USD and ether ETH/USD Blockchains.
The studies show that four individual entities hold the power to disrupt the Bitcoin blockchain. Additionally, it revealed that two entities possess the power to disrupt the Ethereum blockchain.
Trail of Bits revealed that the security of off-chain consensus mechanisms, off-chain governance and their software determines the security of a blockchain. The report further shows that nodes deployed by miners can be deployed via easily accessible cloud servers.
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Why it matters: The findings of this report imply serious threats to the global economy, especially to the areas intertwined with blockchain technologies. Most of the big players in the technology sector have expanded into the blockchain and Web3, accepting cryptocurrencies as payment, tokenizing content and assets into NFTs, expanding into the Metaverse, and deploying other domains of the blockchain.
companies, such as Microsoft MSFT, Google Google, Meta platforms METAand Apple A`Lhave used blockchain technologies to develop their security, infrastructure and transaction circuits.
As a result, according to Pentagon research, large companies need to re-evaluate their investments and use of blockchain technologies. As shown in the study, a vulnerable blockchain environment would pose a large-scale threat to a decade of work, hundreds of businesses, and potentially millions of people.
Photo: Courtesy of Wiyre Media on flickr
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