What are the Risks with Public Blockchain?

Are you aware of the debate between private and public blockchain? There are many risks and benefits associated with each of them. However, it is essential to know the key differences between them. Primarily, these parts of blockchain have visible differences. So, it is crucial to identify the right platform and pick as per your requirement. This post will discuss the risks associated with public blockchain thoroughly.

Blockchain Security

When it comes to knowing about the security risks with a public blockchain, let us first have a clear idea of blockchain? It is primarily a ledger of transactions available in blocks that utilize cryptographic validation to connect themselves. In other words, each block uses the reference of the previous block through a hashing function that makes a linked chain named blockchain. It is possible to visualize blockchains as databases with validations that do not store in central locations. However, these peer-to-peer networks are present on multiple computers that allow the interested candidate to obtain a copy.

“`html

Current Landscape of Public Blockchain Risks in 2025

The blockchain ecosystem has evolved significantly since this post was first published, with public blockchains facing both new challenges and innovative solutions. In 2025, quantum computing advancements pose an emerging threat to cryptographic security, with researchers estimating that 15% of current blockchain encryption methods may become vulnerable within the next three years. The rise of zero-knowledge proof adoption (up 300% since 2023 according to Chainalysis) has helped mitigate some privacy concerns, while new regulatory frameworks like the EU’s Blockchain Act are reshaping compliance requirements.

Layer 2 scaling solutions now handle over 60% of Ethereum transactions, reducing but not eliminating network congestion risks. Meanwhile, the 2024 “Blockchain Trilemma Index” shows public chains still struggle to balance decentralization, security, and scalability – with only 3 of the top 20 chains scoring above 80% across all three metrics. AI-powered smart contract auditors have become essential tools, catching 40% more vulnerabilities than traditional methods according to 2025 security reports.

Enhanced Security Insights for 2025

Leading blockchain security experts now recommend a “defense in depth” approach for public chain interactions. Dr. Elena Torres of the Blockchain Security Alliance suggests: “In 2025, you shouldn’t rely solely on the chain’s native security. Implement multi-sig wallets, real-time monitoring with AI threat detection, and always verify smart contracts through at least two auditing platforms.”

The emergence of post-quantum cryptography standards (expected finalization by NIST in Q3 2025) will require proactive upgrades from blockchain developers. Meanwhile, decentralized identity solutions are reducing Sybil attack risks, with the average cost to compromise a validator node increasing by 220% since 2022 according to recent security audits.

Practical Security Implementation Steps

For developers building on public blockchains in 2025, start by integrating the latest OWASP Blockchain Top 10 security controls. Use automated tools like Forta Network for real-time threat detection and consider implementing hybrid architectures that combine public chain benefits with selective private components for sensitive operations.

When transacting, always verify contract addresses through multiple sources – deepfake-powered phishing attacks have increased 175% year-over-year. For institutional users, new custody solutions like MPC (Multi-Party Computation) wallets provide enterprise-grade security without sacrificing blockchain’s transparency benefits.

Public Blockchain FAQs for 2025

1. How vulnerable are public blockchains to quantum computing attacks?

While no major chain has been compromised by quantum computers yet, the risk is growing. Most leading chains have quantum-resistant roadmaps, with Ethereum planning a full transition by 2026. For now, avoid reusing wallet addresses and monitor chain-specific upgrade timelines.

2. What’s the most overlooked public blockchain risk today?

Front-running attacks remain underappreciated – over $300M was lost to MEV (Miner Extractable Value) exploits in 2024 alone. Using private transaction pools or services like Flashbots can significantly reduce this risk.

3. Are newer public chains more secure than established ones?

Not necessarily. While newer chains often implement latest security features, they lack the battle-tested reliability of chains like Bitcoin or Ethereum. Always check a chain’s audit history and bug bounty program scope before committing significant assets.

4. How can I verify smart contract security myself?

Start with tools like Slither or MythX for automated analysis, then cross-reference with audits from at least two reputable firms. In 2025, look for audits that include fuzz testing and formal verification methods.

5. What emerging technologies are reducing public blockchain risks?

Confidential computing (like Intel SGX implementations), zk-STARKs for privacy, and AI-powered anomaly detection systems are making significant impacts. The most secure projects now combine several of these approaches.

“`

If you intend to have a completely decentralized network system, you can opt for a public blockchain. Integrating a public blockchain network with an enterprise blockchain process may not be easy.  Read more about What are problems with Blockchain Adoption?

Risks Associated with Blockchain

Blockchain acts as a distributed ledger having a decentralized nature that can offer several benefits like security, trust, transparency, ease of use, and cost reduction. In this blog, we will focus on a public blockchain.

Blockchain technology allows anyone to read and write without authorization and permission. Rues and algorithms are complex, provide security, and are costly for the computation process. The most famous examples of these blockchains are Bitcoin and Ethereum. Plus, they are transparent, decentralized, and trustworthy. crypto trading has several examples of the public blockchain and possible risks.

1. 51% Attack

Public blockchains are susceptible to 51% of attack that incorporates blockchain with a consensus protocol. If a single user or group possesses more than 50% of the total hashing power. It can result in exploiting 5% of the total hashing power. Its influential mining volume can help attackers build a substitute chain followed by other participants. When a blockchain uses Proof-of-work consensus, at this point, 51% attack will act as a “rival chain.”

In addition, this type of attack can encompass its network-based mechanism.

2. Race Attack 

Blockchain network with Proof-of-work consensus mechanism is moe vulnerable to race attack. It occurs in the way when an attacker creates two computing transactions, and it leads to the occurrence of a race attack.

As a result, recipients receive payments, and the transaction is not confirmed yet. In this way, the prey individual accepts the transactions. The attacker sends inconsistent transactions to various vendors with two different machines.

But the amount gets resent of cryptocurrency to the attacker that makes the first transaction null. So, how do you deal with this “Race attack”? When a vendor can wait for block confirmation that may be even one before sending more assets.

3. Finney Attack

The Finney attack can occur using blockchain technology known as the Finney attack. It is a type of double-spending that means a participant can use a single bitcoin twice. In simple words, through this attack, an individual can spend a single bitcoin twice and receive assets based on the value of two bitcoins.

This attack leads to the pre-mining of one transaction in a block, and a duplicated transaction gets sent to the user. This process occurs when an attacker spreads the partnership that involves the initial transaction and gets accepted by the recipient. It will result in sending the null transaction to the recipient. In this way, the attacker will successfully make a double-spend transaction.

Conclusion:

In short, we cannot decide that any of the blockchains is perfect to use because each of them has advantages and disadvantages. So, each blockchain consists of unique characteristics. Yes, you can consider your business requirements to pick a suitable blockchain for you. Interestingly, you have another option to learn how to design and implement your blockchain.

“`html

As we navigate the evolving landscape of public blockchains in 2025, it’s clear that while they offer unparalleled transparency and decentralization, they also come with significant risks—scalability challenges, security vulnerabilities, and regulatory uncertainties. Understanding these risks is the first step toward mitigating them, whether you’re a developer, investor, or enterprise exploring blockchain solutions.

Looking ahead, advancements in layer-2 solutions, zero-knowledge proofs, and decentralized identity frameworks promise to address many of these concerns. However, staying informed and proactive is key. The blockchain space moves fast, and those who adapt will thrive.

Ready to dive deeper? Share your thoughts in the comments—have you encountered these risks firsthand? What strategies are you using to stay secure? Let’s keep the conversation going and build a safer, more resilient blockchain ecosystem together.

People Also Ask

How can I secure my transactions on a public blockchain?
Using hardware wallets, multi-signature authentication, and verified smart contracts can significantly enhance security.

Are private blockchains safer than public ones?
Private blockchains offer more control and privacy but sacrifice decentralization, making them better suited for enterprise use cases.

What’s the biggest regulatory risk for public blockchains in 2025?
Evolving compliance requirements, particularly around DeFi and cross-border transactions, pose major challenges.

Can quantum computing break blockchain security?
While a future threat, post-quantum cryptography is already being developed to counter this risk.

How do public blockchains impact energy consumption?
Proof-of-Stake and other eco-friendly consensus mechanisms are reducing energy use compared to traditional Proof-of-Work systems.

“`