The criminal use of cryptocurrency was amongst the top three internet crimes in 2021. Owing to this, the first half of 2022 wasn’t in favor of crypto.
So far, we’ve seen the downfall of Terra Luna, loss of $1.4 billion through cross-chain bridges, loss of $615 million from Ronin, and countless more security incidents. Naturally, it shakes our trust in crypto.
Should we hold on? Or should we withdraw investments?
In this post, that’s what we’ll talk about. We’ll be studying:
Existing Crypto Security Measures
Here are some of the crypto security measures companies take today to prevent theft and make recovering lost bitcoin possible:
Wallet/Key Security
Currently, keys are the heart of crypto security. A key or seed is randomly generated with hundreds of digits. You get it in the form of a string of alphanumeric characters.
A wallet holds all your cryptocurrency, and the key provides access to it. Usually, crypto platforms ensure wallet/key safety by generating a unique address for every transaction. However, some companies have leveled up the security through these measures:
External Assessment
Having the best team of data specialists isn’t enough, and many companies understand this. Sometimes, an external assessment is necessary to identify potential risks that may have been missed by the in-house team.
This is why organizations often get their system checked by crypto security experts. They don’t only point out the potential risks but also offer custom solutions.
Continue reading: https://www.cryptoninjas.net/2022/10/26/what-is-the-state-of-crypto-security-in-2022/
So far, we’ve seen the downfall of Terra Luna, loss of $1.4 billion through cross-chain bridges, loss of $615 million from Ronin, and countless more security incidents. Naturally, it shakes our trust in crypto.
Should we hold on? Or should we withdraw investments?
In this post, that’s what we’ll talk about. We’ll be studying:
- Existing crypto security measures
- Current and expected crypto security status
Existing Crypto Security Measures
Here are some of the crypto security measures companies take today to prevent theft and make recovering lost bitcoin possible:
Wallet/Key Security
Currently, keys are the heart of crypto security. A key or seed is randomly generated with hundreds of digits. You get it in the form of a string of alphanumeric characters.
A wallet holds all your cryptocurrency, and the key provides access to it. Usually, crypto platforms ensure wallet/key safety by generating a unique address for every transaction. However, some companies have leveled up the security through these measures:
- Identity verification and background check
- Requirement of 2 signatures every time you want to spend the amount in the wallet
- Storage of keys with signing authority in unique locations
- Allocating redundant keys to wallets for recovery
External Assessment
Having the best team of data specialists isn’t enough, and many companies understand this. Sometimes, an external assessment is necessary to identify potential risks that may have been missed by the in-house team.
This is why organizations often get their system checked by crypto security experts. They don’t only point out the potential risks but also offer custom solutions.
Continue reading: https://www.cryptoninjas.net/2022/10/26/what-is-the-state-of-crypto-security-in-2022/
