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Hacking is becoming a major issue in the crypto community

Hacking Is Becoming a Major Issue in the Crypto Community

By Stefan Filipović
Published 6 months ago

Hacking has emerged as a consequence of the digital age. It quickly took over and become one of the most prominent subcultures of the late 20th and early 21st century. The process of hacking might be beneficial for the software or the computer network, as it might reveal some vulnerabilities in the system that could be exploited. Also, it could have a negative impact as hacking can be done with the intention of stealing someone’s assets, including money, identity, confidential information and other. 

Blockchain and the Decentralized Revolution

Early centralized computer networks were an easy target for hackers. All they had to do was to enter the central computer and the job was basically done. Centralized networks have proven to be a flawed idea as far as the cyber security is in question.

With the invention of blockchain technology, a completely transparent and decentralized system of digital ledgers, it seemed as though the hackers will have much harder job penetrating into such a decentralized system. Blockchain was thought to be a giant step ahead for the cybersecurity. As time passed, blockchain stayed on the forefront of the technological innovations, although now it is clear that it has a long way to go to become cybersecurity revolution, as initially imagined. This is not due to the issues of the technology itself, but more because the implementation of the technology needs some refining.

One of the main areas where improvement should come as soon as possible is the crypto exchange sphere.

Recent Issues

On June 10th, Korean exchange Coinrail has lost approximately $40 million in altcoins, due to a hack, as TechCrunch reports. Coinrail was one of the smaller exchanges, but the amount of money lost was not small by any means, especially for the recently struggling crypto market. Only this year, another exchange, Coinheck, lost an estimated $400 million. In November, last year, Tether lost about $31 million due to a cyber-attack. Of course, we cannot forget the Mt Gox hack, which is the biggest crypto hack in history when the exchange lost an estimated 744,408 BTC.

It is clear that the exchanges are the easiest target, but we must also note that the blockchains like Verge and Bitcoin Gold were also subjects to successful cyber-attacks.

 This recent hacks raised awareness about the hacking issues and it might not be a bad idea to start searching for some organized solutions.

Possible Solutions

It seems as though some immediate solutions could be put into two groups:

        Protect the Customer

This solution calls for the regulation of the crypto space in order that the customers could be secured if cyber-attacks happen. Their assets could be eligible for insurance and all crypto exchanges should protect their customers if hacks happen. Basically, leave the technology at the moment, and protect the crypto space itself.

 

        Protect the Technology

The other solution could bring some major changes to the technology itself, as it could see some refinements in the future which will make cyber-attacks much harder to pull off.  This could be the harder way, but as a consequence, it could save the crypto space from the unnecessary tight regulations.

Conclusion

Every innovative technology needs to travel a long way before final implementation. It takes time and a lot of effort until the technology becomes eligible for wider use. We had direct current for years until Tesla didn't come up with alternating current and with that made electric current widely used. The same could be happening with blockchain technology. It could be one Tesla away from changing the world by bringing decentralized revolution.

What do you think about the current state of the blockchain technology? Leave your opinion in the comments.