How Simple Errors Create Major Blockchain Security Risks

During the warm, radiant mornings, with no discomfort—just serenity—learning more about blockchain feels just right.

One of the key characteristics of blockchain technology is security; however, there have been instances where the decentralized network (blockchain nodes) has been hacked, resulting in the loss of transactions. Security threats can arise during the development of blockchain systems and tools, as well as during integration and deployment.

Today we’re going to explore two common mistakes blockchain developers make while using the "Foundry" framework.

Let’s dive in…

Foundry is a Solidity framework that provides an environment for building, testing, and deploying smart contracts (automated contracts that execute themselves) on the Ethereum blockchain. Ethereum is an open-source platform that facilitates the creation of these automated contracts and decentralized applications (dApps), primarily using the Solidity programming language. While Solidity is the main language, some developers have also experimented with languages like Rust.

THREAT 1: Private Key in the Bash Terminal History

Foundry includes a Bash terminal for interacting with the Ethereum blockchain and managing smart contracts. The following command creates a new smart contract project:

forge create NewContracts --rpc-url http://127.0.1:8545 —private-key 0xFfb20fcf483252BEbae76215855

Having a private key—especially a production key or keys associated with accounts holding crypto—in plain text within the terminal history is highly risky.

Correction: Use the history -c command to clear the terminal history.

Storing keys in plain text is dangerous, and some developers s go a step further by saving the keys in an .env file (which is listed in the .gitignore file), especially when running the forge script command. This leads to another security risk that could be a critical mistake:

THREAT 2: Storing Keys in the .env File

An .env file typically hosts sensitive environment variables, but storing keys here remains risky since the file could be exposed.

Correction: Encrypt the file. The keystore function in Foundry allows you to specify a path to an encrypted store file, secured by a password.

forge script --keystore <PATH>

Alternatively, you can use the --interactive function for added security.

In conclusion, while the blockchain ecosystem offers a vast potential for innovation, security remains a critical concern for developers. The Foundry framework is a powerful tool for building and deploying smart contracts, but it’s important to be mindful of common security pitfalls, such as storing private keys in the Bash terminal history or in unencrypted .env files. By adopting best practices, developers can significantly reduce the risk of security breaches and protect both their applications and users. With these precautions in place, you can confidently dive deeper into the blockchain space and contribute to a more secure decentralized future.