How Blockchain Can Secure Supply Chains, IoT Devices, and More

Blockchain is hands down the technology buzzword of 2018. But the distributed digital ledger can lead to better supply chains, more secure IoT networks, and more reliable DNS. On July 9, crypto-currency exchange Bancor announced that hackers had compromised one of the company's digital wallets, using the keys to steal about $23.5 million in Ethereum and other digital currencies. The compromise is the latest digital theft of crypto-currencies based on digital tamperproof ledgers, known as blockchains. In Bancor's case, however, the company had a built-in failsafe to claw back approximately $10 million of its own coin—a smart token known as BNT—limiting the damage. "The tokens that were frozen were BNT tokens stolen during the breach," the company said in a statement. "We firmly believe that this ability is a preventative measure essential to most tokens and necessary to protect the network and token holders in a state of emergency." The incident shows both the security risks and promises of blockchain technologies. The combination of the decentralized nature of the blockchain, along with the ability for anyone with access to a particular wallet to issue transactions on behalf of the owner, means that compromises tend to be big and expensive.