A framework for security risk assessment of blockchain-based applications

Abstract

Blockchain technology has revolutionized various industries by enabling decentralized, transparent, and tamper-resistant digital transactions. However, despite its benefits, blockchain-based applications are vulnerable to security threats such as smart contract exploits, 51% attacks, Sybil attacks, and private key compromises, posing significant risks to their integrity and reliability. Traditional security frameworks lack a comprehensive approach to systematically assess and mitigate these risks across different blockchain layers. To address this challenge, this paper proposes the blockchain cybersecurity risk assessment model (BCRAM), a structured framework designed to identify, analyze, evaluate, and mitigate security risks in blockchain systems. The methodology involves categorizing threats, assessing risks using quantitative and qualitative techniques, and validating the model through a case study on Ethereum. Results demonstrate that implementing BCRAM led to a 65% reduction in smart contract exploits, a 70% decrease in phishing incidents, and an 85% improvement in distributed denial of service (DDoS) resilience, proving its effectiveness. This research offers a standardized risk assessment approach, providing valuable insights for developers, security analysts to enhance blockchain security.