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What Are the Security Vulnerabilities of a Public Blockchain Network?
Blockchain is widely recognized as the technology that powers Bitcoin and other cryptocurrencies, but it also has other potential uses in sectors such as health care, insurance and Internet of Things technology. Private companies can also set up private blockchains, which only users with express permissions can access. 

The number of blockchains is growing, and as it does, so has the need for a way to send information between these systems. Such a mechanism is necessary for widespread adoption to take place.

A company called the Aion Exchange is looking to provide that capability for the first time with their public blockchain network. It wants to become the infrastructure that underpins the development of the potentially revolutionary technology.

Sending sensitive information through public infrastructure, however, creates some clear security concerns. If the Aion Exchange network is going to be successful, it needs to address these issues and win the trust of potential participants. Let's look at these concerns and how the company plans to deal with them.

Sending Data Proof

To minimize security concerns, organizations will only send proof of work to each other through the system, rather than actual sensitive information, Aion Networks CEO and Cofounder Matthew Spoke recently told TechCrunch.

Instead of a hospital sending an insurance company a medical record through the blockchain, for example, they would send proof that a patient had an operation. The insurance company can then check that against their coverage rules for that patient.

Incentivizing Honesty

Aion Networks has a plan for building trust in the network and building the user base needed to make the project a success. The company plans to create a cryptocurrency that participants use to move data through the network.

You won't have to pay to use the infrastructure. Instead, you'll pay to be a part of the overall ecosystem. The use of cryptocurrency will encourage users to do business honestly, Spoke said.

Participants can charge Aion tokens to move information through the system, allowing them to monetize their participation and incentivizing companies to use the Aion Exchange. This currency will also help the system become self-sustaining.

Building the Code

Most observers don't expect the Aion Exchange to be an overnight success. The system needs to reach a critical mass of users to truly take off. The company says it will spend the next few years continuing to build the infrastructure and ensuring they fix any security vulnerabilities.

Aion Networks has some experience with security-related work.

In 2017, the company, which was called Nuco at the time, received funding from the Ontario government to improve digital identify verification. The project aimed to improve identity proofing across government, to enable citizens to access government programs and for government to authenticate citizens' identities.

The system is still very new, as is the project, so it's something of a mystery how everything will play out. Will the mechanisms Aion Networks has already planned be enough to ensure security? Or, will new solutions emerge as the project develops?

Chances are good some unexpected changes will reveal themselves as the project moves forward. How the project develops depends, in part, on which organizations decide to participate. Aion Networks also isn't the only one looking into this issue.

So far, the market seems to be receiving the Aion token well. The Aion currency has a total market capitalization of $490.08 million, and you can now buy one Aion token for $3.68 on major exchanges.

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About the Author

Kayla Matthews is a tech-loving blogger who writes and edits ProductivityBytes.com. Follow her on Twitter to read all of her latest posts!
Published Thursday, May 03, 2018 8:27 AM by David Marshall
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What Are the Security Vulnerabilities of a Public Blockchain Network? : @VMblog – CryptoCurrency Tips and Information - (Author's Link) - May 8, 2018 5:04 AM
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