Mt Gox, Bitfinex, BitGrail… are all the names that can run shivers down our spine. People honestly have nightmares about them. These were some of the biggest exchange hacks to have been occurred up until now.
In the crypto world, there is a common misconception that for exchanges to prosper massive trust needs to be placed in them by users that their funds and personal information all will be safe.
But who’s guarding us against these massive attacks? Despite this being a decentralized ledger, why are hacks and data thefts so commonplace? This doesn’t sit well with the community as they are required to place substantial faith in the exchanges.
The Solutions
You know, when we highlight a concern, we always come loaded with solutions. But first, we want you to
Okay so, this issue is being widely discussed at crypto events. And, recently at the Vietnam Cryptocurrencies and Digital Assets Dialogue 2018 event, Huobi Head of Marketing Ethan Ng, addressed this issue.
Here are some of the solutions he proposed:
Huobi Security Reserve: Well, first they plan to allocate 20,000 bitcoins in case of any losses that occur on the Huobi platform.
Huobi User Protection Fund: Huobi will use 20 percent of their income to use the maximum number of HT as possible. And the same money will be used as a way to reimburse any user that has been a victim of a security breach on their platform.
New and improved wallet protection: 98 percent of the client’s funds will be stored cold wallets instead of the much insecure hot wallet.
SMARTCHain evaluation model: A much stronger, internal model that prevents fraudulent coins being listed and sorts the good and bad projects.
Two-factor Authentification is a must, boys!
So far, so good, amirite?
Now the real question, will it work?
Personally, I hope it is a huge success but that’s my wishful thinking. Security in any aspect is very important, it is a core need of any human being. We all find ourselves looking for security in jobs, our homes, our social circles, relationships, and what not.
And when it comes to financial security, there’s an added layer of significance attached to it. Due to the nature of that topic and finance is pretty much the most important assets for anybody.
So if cryptocurrency were to achieve the goal of providing a technological solution for the masses, then cryptocurrencies have won the war. The methods introduced seem to be hopeful and should be implemented with great intentions. Only once this problem has been solved, the public will only then embrace cryptocurrency and the benefits it can provide.
