Blockchain technology is undeniably a revolutionary advancement. It offers a system that is stable, secure, and free from many errors. However, the same cannot be said about cryptocurrencies. They remain vulnerable to hacking and manipulation, and even Blockchain can be compromised.

Recently, two significant events have shaken people’s faith in digital systems. One such event was the Microsoft outage that occurred just yesterday. This outage impacted services reliant on Microsoft 365. Entities such as banks, airlines, and healthcare systems which relied on cloud based services, came to a standstill because of this. In our interconnected and interdependent world, such problems are never isolated. They have a ripple effect that impacts everything globally.

This outage was not caused by a cyber or terrorist attack but by a software glitch—the very software designed to secure the system. The problem arose during a firewall system update, which caused the firewall to repeatedly reboot and shut down the system. This led to widespread service disruptions, affecting airlines, railways, banks, and more. In the US alone, 3,000 flights were canceled, resulting in immense economic losses.

Another event was the security breach at WazirX, a leading crypto exchange in India. Two days ago, this exchange suffered a massive cyber-attack in which hackers stole about $230 million in crypto assets. It was reported that the cybercriminal group Lazarus might be behind this incident. Regardless of who was responsible, the fact remains that users and investors suffered significant losses. A $230 million loss is substantial by any measure.

These incidents highlight that the digital systems, often touted as the safest, are not immune to vulnerabilities and attacks. Cybercriminals can easily target and cripple these systems. Therefore, it is unwise to place blind faith in blockchain-based technologies, as they are not entirely foolproof.

In my upcoming posts, I will explain why many crypto projects are scams. So, stay tuned.

What do you think about the security of blockchain and digital systems? Have you experienced any disruptions due to these vulnerabilities? Share your thoughts and experiences in the comments.

Thanks!