The Pentagon’s recent study finds some disturbing vulnerabilities in blockchain technology that question its decentralized nature. Are blockchain's inherent security safeguards enough? According to the Pentagon report, the blockchain is vulnerable, specifically Bitcoin and Ethereum. The Pentagon’s report surfaced just weeks after the Luna crypto crash, raising serious questions about the security and stability of decentralized finance.
Blockchain Vulnerabilities Exposed: Pentagon Study Raises Concerns
A new study commissioned by the Pentagon’s research arm, Defense Advanced Research Projects Agency (DARPA), and conducted by Trail of Bits, a security research organization, examines the security of blockchain technology. Trail of Bits focused on identifying potential weaknesses that could be exploited by malicious actors. The study by the Pentagon states that Blockchain has built-in security safeguards, yet it is still vulnerable to flaws and attacks. This research highlights the threat posed to large-scale blockchain applications, particularly in light of recent events like the Terra/Luna collapse.
Pentagon Report: Bitcoin and Ethereum at Risk
The Pentagon's report reveals vulnerabilities existing in the blockchain, focusing on Ethereum and Bitcoin. A key finding suggests that only 2 and 4 participants, respectively, can disrupt BTC and ETH, highlighting a potential centralization issue within supposedly decentralized networks. This contradicts the core promise of blockchain – a trustless, distributed ledger.
Luna Crash: A Warning Sign for Blockchain Security
In May 2025, the decentralized stable coinTerraUSDpegged1:1 to the U.S. dollardropped to 30 cents when an algorithm running on the blockchain collapsed. Financial experts warn that the Luna crash was an important lesson about the risks of decentralized systems. This event underscores the importance of rigorous security audits and vulnerability assessments, such as the one conducted by Trail of Bits for DARPA.
Understanding Blockchain Vulnerabilities: What the Pentagon Study Reveals
In this review paper, the authors will examine the threats and vulnerabilities that, according to the Pentagon report, plague the blockchain. As the cryptocurrency industry continues to expand and becomes an increasingly attractive target to hackers, the Pentagon has commissioned a study that has uncovered critical security flaws. The study resulted in a report that provides holistic analysis that’s available to anyone considering blockchains for important matters so they can better understand the risks. The report shines a light on the need for ongoing research and development to strengthen blockchain security and protect against potential attacks. The Pentagon’s findings serve as a crucial reminder that while blockchain technology holds immense promise, its security vulnerabilities must be addressed proactively.