December 13, 2018

Holistic View Over Security In Cryptocurrencies

Holistic View Over Security In Cryptocurrencies

Cryptocurrencies continue to build ground within today’s economy and many countries are seeking to attract crypto start-ups to their shores, however some questions remain. These questions don’t just affect the inquisitive investor but also whole countries and economies. Therefore, it seems only right to hunker down and attempt to find answers to all of these burning questions. Recently the whole world gazed onto the blow-up surrounding the Bitfi hacking scandal, where hackers managed to gain access to the Bitfi wallet just days after its official launch. However, while the Bitfi incident might be a rare phenomenon the fact remains that many cryptocurrencies are acting quickly and effectively to attempt to tighten their security.

The Scandal Has Helped

Perhaps it has even been a blessing in disguise, this Bitfi scandal, how is it a gift from above? Well, it helped to shine a light on a brand new type of supercomputer that is practically hacker-proof. Before the only reasonable offerings on the market were the Ledger and the Trezor. Yet, the most ingenious, in fact revolutionary part of the Bitfi scandal is that the marketing team of the newly-launched wallet had packed the cryptocurrency sector’s former troubles with security into the advertising strategy. Hence, there was a call for government and institutional legislation that will serve to protect the consumers while still allowing room for crypto start-ups to grow and create new avenues within the world of finance.

Other Stories And Their Lessons

Crypto start-ups have been unfairly targeted in the past by illegal groups seeking to make millions in the matter of seconds. Yet, there have been terrible accusations levelled at some of the groups, for example Coinbase personnel have had claims laid against the company alleging that staff had committed insider trading. Furthermore, certain crypto organizations have entirely switched countries of operation when their former country of residence institutes stricter regulations, cutting down their own freedom of movement. One such example is Binance, who used to conduct business out of China but after China updated its policies on cryptocurrencies, Binance decided to move out to Malta.

Binance has been attacked in the past, previously though they were able to stop the thieves just as they were attempting to withdraw the funds from the wallets. These fraudulent individuals conducted quite a few months of reconnaissance via various phishing scams and thus were able to obtain many different users identities from across the world. However, even though Binance might have been able to stop one den of thieves from managing to steal many people’s hard earned money, they are not exempt from the woes of security.

Survey Shines The Truth

A recent survey that was sent out by Encryptobit discovered that not a single exchange, including all the major exchanges such as Binance and Huobi.pro, have managed to make their users feel completely secure with their investment. This is worrying news as consistently throughout the survey the results showed that security of the exchanges came out number one out of all concerns for users irrespective of how much they had in the site or other factors. Security truly is one of the fundamental needs, question is how will cryptocurrency exchanges step up to it.

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