Is Cryptocurrency the Next Big Threat or an Opportunity?
Feb 07, 2020
In peoples’ minds crypto causes huge issues from a security point of view. The growing number of hacks on crypto exchanges over the recent decade, costing billion USD is a warning sign for potential investors in cryptocurrencies. The fears of losing assets, fueling by the headlines about crypto hacks, stop masses from adoption and puts potential early adopters off. So, the majority of people still prefer to stick with traditional stores of value such as real estate, stocks or bonds. Crypto is perceived as a threat, and after all, it is not possible to deny the numbers of stolen assets.
At the same time, despite all the risks, cryptocurrencies can be much safer than people think and crypto even makes a more secure store of value in comparison to fiat. Plus, cryptocurrencies bring plenty of opportunities worth making the move forward towards their adoption.
Biggest Exchanges Are Getting Insured
The biggest cryptocurrency exchanges have started looking for ways to get insurance against asset losses as a result of hacks and breaches. This is an important step forward for the crypto industry meaning cryptocurrency is getting protected in a way close to fiat money. It also a sign market is getting mature as the crypto community realizes the necessity of forces unification to ensure protection measures for every player, despite competing in creating fintech services. After all, mutual actions will be beneficial for the industry and for the crypto adoption. So, it is a sign that, with time, some minor exchanges will be incorporating the best cyber-secure practices, developed by the top ones.
Setting Up Contingency Funds Practice Is Becoming More Common
The most influential exchanges start to implement a contingency funds practice: to reserve a large amount of cryptocurrency in the event of a hack. It means that this amount of money will be served as a reserved fund to be redistributed among hack victims. So, those who will lose their crypto would receive it back. It is a good practice as the biggest difficulty in the space of digital money is proving the fact that your crypto assets have been stolen, because of the absence of legal regulations.
Platforms with Embedded Security
Modern blockchain platform solutions, which can secure fintech infrastructure and wallets, goes beyond traditional security approaches, creating trustworthy environments by enabling secure device-to-cloud communications. Such platforms operate across multi-vendor, complex infrastructure where performance and security are critical to ensuring privacy and safety. For instance, HyperSphere’s ability to provide the trust environment is critical to the reliability, security and safety of many industries including fintech and IoT, which are getting more and more connected.
Despite all the security risks and the fact the major cyber-attacks against cryptocurrencies happen regularly, digital money can have great potential for changing the current economic situation, boost e-commerce and become an alternative store of value.