Basic Steps to Ensure Blockchain Application Security

Basic Steps to Ensure Blockchain Application Security

Blockchain technology is increasingly becoming mainstream, with a wide range of businesses and sectors dependent on it. Not only does blockchain provide great value to users through its decentralized, secure nature; it also helps reduce systemic risk associated with its many applications.

The reliance on distributed ledger technology means that security must be of utmost concern for both developers and stakeholders alike when building future-facing assets using blockchains like Bitcoin and Ethereum.

This article will go into exploring best practices and methods for ensuring blockchain application security starting from building secure development environments to leveraging external audits as preventative measures.

Secure Development Practices

Secure Development Practices


Utilizing best coding practices

Secure development practices can be critical in guaranteeing the blockchain application security. One such practice essential to viable security is utilizing dependable coding techniques. This is an important basic cognizant, as poor coding can make exploitable weaknesses in codebase frameworks that may bring about backdoors and vulnerabilities in applications.

Developers should incorporate defensive structures during design and use authentication of functions, input checks, and subsequent principles while creating codes to shield themselves from hackers who might intend to abuse these exploits.

Moreover, including logging or tracking different procedures help establish system attacks when they happen which can offer early cautioning warnings that could conceivably forestall more significant harm later on if adequately tended to right away.

Regular code reviews and audits

Regular code reviews and audits provide an important foundational element for blockchain application security. Utilizing best coding practices when developing smart contracts also allows development teams to spot any potential vulnerabilities earlier in the process.

Additionally, having a thorough review period of every single line of code can help address issues or interoperability problems that could lead to greater security risks down the road.

Reputable companies may hire professional blockchain auditors or investigations firms to check their codes’ accuracy, data integrity, data analysis models, and functional tests among other elements. This helps them make sure all vulnerabilities are verified in reasonable timeframes before pushing projects into production.

Employing secure smart contract development methodologies

Secure smart contract development is essential to maintain blockchain application security. Methodologies including functional test cases and code reviews reduce potential vulnerabilities that could put users and assets at risk.

Decomposition of user stories into its basic atomic details will ensure effective execution, while interactions between contracts should be monitored for malicious access and system elements staying within established deliberate boundaries.

Furthermore, having multiple programming languages available for developers to choose from allows enough options needed to create secure code with enhanced readability. All these together constitute sound practices of secure smart contract development in order to mitigate the issue of deficient software requirements in various applications linked with blockchain technology.

Access Control

Implementing strong authentication mechanisms

One important step to ensure the security of a blockchain application is implementing strong authentication mechanisms and access controls.

This can include using multi-factor authentication, automated password resets, application whitelisting, and two-way encryption systems.

Ultimately this creates an extremely secure environment because it allows only trusted users that are authenticated before gaining access to the data or blockchain system that is being protected. It also reduces vulnerabilities by limiting those inside the system from unauthorized accessing of critical data such as encryption keys.

Applying role-based access control (RBAC)

Applying role-based access control (RBAC)


Role-Based Access Control (RBAC) is an access control method for managing user roles. RBAC gives specified users certain permissions to access resources according to defined roles and terms. Every action that a user can take within the system, such as reading or writing data records, must be assigned using RBAC.

The methods enable IT personnel to assign suitable actions on confidential information assets depending on their responsiveness to malicious activities from undesired users in the system as it puts up protocols against illegal infiltration or transactions.

Ensuring proper permissions management

Ensuring proper permissions management is an important step when addressing access control for blockchain applications. It helps reduce the potential attack surface area of the network by limiting which nodes have access and for what type of activities they are enabled. Permissions regulations can be created based on user roles or other references conducive to a distributed storage solution.

This requires application layers come up with granular, role-based security policies done through smart contracts that enable layer-by-layer permission binding within open networks.

Properly managed scalability and extensibility should also be considered while establishing access levels in order to prevent unauthorized takeovers or other illicit interventions more likely to occur in publicly available networks within potentially hostile ecosystems.

Data Encryption

Data encryption in blockchain


Encrypting sensitive data at rest and in transit

Data encryption is a crucial part of ensuring the security of blockchain applications. All sensitive data stored in databases and transmitted across networks should be encrypted.

Data at rest should use secure algorithms and protocols to encrypt data when not being actively used, and encrypting data in transition ensures that it will remain confidential while traveling between systems.

Additionally, proper key management controls with access limited to select personnel must also be implemented when utilizing fundamental encryption methods for both confidentiality and integrity.

Node Security

Running the latest software updates and patches

In terms of node security in a blockchain application, it is important to regularly run the latest software updates and patches.

Upgrading existing nodes ensures current system integrity by eliminating compromised components, particularly if new exploits have been uncovered. Additionally, security patches decrease vulnerability points that could otherwise be exploited by malicious actors.

Therefore incorporating automatic update mechanisms into existing systems provides yet another defense of cybersecurity layer against possible cyberattacks or data breaches.

Enabling firewalls and network security measures

Keeping nodes secure is essential to prevent malicious attacks across a blockchain network. Enabling firewalls protects networks against potential exploits such as unauthorized access, malformed traffic, distributed denial of service (DDoS) attacks, malicious botnets, and other threats. Firewall configurations should be checked constantly for any misconfigurations or weaknesses that can be exploited by an attacker.

Additionally, appropriately segmenting the nodes in a network provides additional levels of security against unintended effects from any related intrusions and damage caused by malware engagement through common ports inside the cryptographic shell of the node environment. Network security measures are also important in ensuring nodes will maintain automated contact with others connected to it and processes like Software Defined Networks (SDN) for monitoring quality within those interactions.

Regular Backups and Recovery Procedures

Implementing automated backups of critical data

Maintaining regular and secure backups of all critical data should be an integral part of any blockchain application development lifecycle. Backing up datasets, configurations, private keys, blocks, and so on are important considerations to a successful recovery plan in the event of a security breach or other incident which compromises data integrity and availability.

Implementing automated backups can help streamline the recovery process providing rapid access to more recent application states when required. Automated storage solutions can offer redundancy allowing multiple copies to exist requiring both low resource utilization and advanced alerting techniques if key inconsistencies have been spotted.

Creating a comprehensive recovery plan in case of a security breach

When creating a comprehensive recovery plan in case of a security breach, organizations need to keep in mind that secure backups are paramount.

All data should be routinely backed up on independent secondary storage devices such as cloud storage and then encrypted with strength algorithms. These backups can then help in quickly plugging any loose ends tested by hacker activity and malicious insider activities.

Finally, updating programs on all connected systems consistently is essential for plugging any subtle fissure found post the security events that took place during the initial phases.

Community Vigilance and Bug Bounty Programs

Encouraging community involvement in security

Establishing a bug bounty program and encouraging community involvement in security is an important step toward ensuring the proper protection of blockchain technology. Bug bounties enable users to report technical issues or potential exploits which can subsequently be vetted, remediated, and rewarded.

Community vigilance entails secure coding practices coupled with regular feedback sessions between developers for detecting vulnerabilities faster. By providing insights from a variety of data points as well as sources such users are heavily empowered in actively preventing sophisticated attacks on networks running on distributed ledger systems.

Establishing a bug bounty program to incentivize vulnerability reporting

One of the most effective ways to encourage the wider beforementioned blockchain application security is by establishing a bug bounty program.

By incentivizing vulnerability reporting by offering rewards in exchange, investigators can be spurred to investigate and report potential issues early on in their stage of development. Encouraging and offering compensation encouraging people to report bugs helps companies swiftly identify vulnerabilities so they processed them efficiently.

With the time saved and more reports generated – since some users might otherwise withhold them – financial losses in relation to damages caused initially by critical bugs are mitigated significantly.

Continuous Monitoring and Incident Response

Employing real-time monitoring for suspicious activities

Why criminals can't hide behind Bitcoin


Continuous monitoring and incident response can provide added layers of security for blockchain applications. Real-time, automated attestation should be employed in order to monitor system performance and detect any malicious activity or unauthorized access attempts.

The incidence response plans should be established ahead of time along with comprehensive reporting procedures for team members to familiarize themselves with the best practices for management and recovery from successful cyberattacks.

Having a well-defined incident response plan

It is important to anticipate any potential security threats and take preventive steps in order to ensure the safety of Blockchain applications. For this, having a well-defined incident response plan can be very effective.

Such plans must define detailed reporting procedures; assess risks and prioritize responses; formulate reports related to incidents found and tasks accomplished during the recovery process; provide guidance on engaging external or internal stakeholders; conduct media & legal implications along with guidelines of business continuity management strategies in case an attack occurs.

Clear roles must also be allocated according to authorization levels with respect to intended personnel responsible for specific functions as they work together during the incident’s lifecycle. The response process must be frequently reviewed for enhancing security coverage thus strengthening protection architectures and allowing applications to handle incidents quickly and effortlessly.


In conclusion, blockchain application security is of utmost importance to prevent a number of critical concerns that accompany this type of technology. Developers must keep up with the best secure development practices, access control mitigations, and encryption updates to maintain optimal security for these applications.

Additionally, community participation through vigilance and timely bug bounty incentivization is essentially helping hands in providing an extra layer of security solvation effort.

With the right consciousness and intelligence put into developing blockchain networks – risk mitigation strategies can be tailored to the finest outcomes not only on the platform’s base but building assurance among its users too.

Looking to hire the best blockchain developers? Get in touch with our blockchain development team today!


Ryan is the VP of Operations for He brings over a decade of experience in managing custom website and software development projects for clients small and large, managing internal and external teams on meeting and exceeding client expectations--delivering projects on-time and within budget requirements. Ryan is based in El Paso, Texas.
Connect with Ryan on Linkedin.
Ryan Nead