Between October 2020 and April 2021, Americans lost more than $80 million in cryptocurrency scams, the U.S. Federal Trade Commission reported. This is a major PR problem for the cryptocurrency industry. But what can the industry do to help users stay safe and pave the way for mass adoption?
Preventing successful attacks starts with acknowledging that cryptocurrencies are fundamentally different from traditional, or fiat, currencies. Although blockchains are designed to incentivize sound transactions by rewarding good actors, blockchain addresses don’t have the same recourse or guarantees as bank or credit card accounts. There’s no authority to bail the holder out — no FDIC guarantee. While someone can dispute a fraudulent credit card transaction, a validated blockchain transaction can’t be undone.
Most veteran cryptocurrency holders however have managed to keep their cryptocurrency assets secure. Often for many years. Three relatively simple access control tools are responsible for that protection: private and public keys, software wallets and backup codes and hardware wallets. Here is a breakdown of how these tools operate and best practices.
Continue reading: https://www.paymentsjournal.com/keeping-cryptocurrency-secure-its-time-to-educate-users-to-pave-the-way-for-mass-adoption/
Preventing successful attacks starts with acknowledging that cryptocurrencies are fundamentally different from traditional, or fiat, currencies. Although blockchains are designed to incentivize sound transactions by rewarding good actors, blockchain addresses don’t have the same recourse or guarantees as bank or credit card accounts. There’s no authority to bail the holder out — no FDIC guarantee. While someone can dispute a fraudulent credit card transaction, a validated blockchain transaction can’t be undone.
Most veteran cryptocurrency holders however have managed to keep their cryptocurrency assets secure. Often for many years. Three relatively simple access control tools are responsible for that protection: private and public keys, software wallets and backup codes and hardware wallets. Here is a breakdown of how these tools operate and best practices.
Continue reading: https://www.paymentsjournal.com/keeping-cryptocurrency-secure-its-time-to-educate-users-to-pave-the-way-for-mass-adoption/
