Secure Trading and PhD Company Security Advisor Talk About Security of Cryptocurrency
Cryptocurrencies are considered as a difficult currency to understand because of the complexity of cryptocurrencies, complex networks and blockchain technology. But what are the consequences when these currencies are adopted on a mass scale? How secure do the cryptocurrencies seem? Could people be wrong about this money?
Mustafa Al-Bassam, a 21-year-old consultant on security at the Secure Trading and PhD research firm, an online payment processor focused on cryptocurrency and blockchain technology, is responding to questions about the cryptocurrencies and the blockchain in an interview with The Economist.
How do the systems of cryptocurrencies such as Bitcoin work?
Bitcoin is a distributed electronic cash system. These currencies are generated using a process called mining. This is exactly where the blockchain goes in. Bitcoin’s unique feature that makes it so secure block chain is its dependence on the blockchain technology. The blockchain is a register that verifies and records Bitcoin transactions; it prevents people spending money twice.
Are Bitcoins reliable?
Bitcoins are secured using a combination of cryptography and economy. It is very difficult to solve these cryptographic puzzles. Your computer must also be powerful to be able to perform the mining process and solve these difficult puzzles. These computers are also expensive. This system makes Bitcoin safe.
Would not Bitcoin mining economy be profitable for hackers?
At the moment, a reward for a block mining is 12.5 Bitcoin on average. Blocks are produced every 10 minutes and transactions are confirmed after 6 blocks. At the moment, the reward for a block mining is around 12.5 Bitcoins or around $12,500. Blocks are produced every 10 minutes and transactions are usually approved after six blocks. Miners spend a lot of money and get small profits to reach the resources. This means that fraudsters have to spend hundreds of thousands of dollars trying to arrange a pair of attacks, and the blockchain has to be forked for them to process the new block. Most transactions are not worth it.
So, what’s the cyber security risk of Bitcoin?
As a risk in Bitcoin, just as money can be taken out of someone’s bank account, Bitcoin can also be stolen. Thieves can spread viruses to computers by sending e-mails targeting people with Bitcoin wallets.
How can users secure their cryptocurrencies?
The way to secure the Bitcoins is to keep them in the wallets called cold storage wallets. (Wallets article hyperlink) This is actually a wallet hidden in your computer. But it is safe because the it is not connected to the internet. For this reason, a potential hacker can not reach it.
What are the challenges for Bitcoin users?
Bitcoin gives you too much power and also responsibility. This is like having your entire bank account in your pocket. You can not reverse transactions because of the way they are secured. This also makes it difficult for people to use Bitcoin at the same time.
How can this be resolved?
There are many services aimed at making it easier for users to manage Bitcoins. They have a useful interface and are financially regulated. But reliability of the company is important when using these services.
What do cryptocurrency holders expect in the future?
The easier it is to use cryptocurrencies, the more likely they are to get away with it. But unfortunately thieves always go where the money is.