Cryptocurrencies and security Are they really unfeasible?
Despite the enormous security that Blockchain technology provides to cryptocurrencies, cybercrime can still reach our crypto assets.
Although it may seem a bit paradoxical that we talk about the possibility of hacking in the crypto world. After the emphasis that is usually placed on the security of Blockchain technology. It is not crazy to talk about this subject at all. Well, despite the fact that block chains are actually the safest technology for data storage today. Cybercrime is never far from cryptocurrencies.
Security and Blockchain in the 21st Century
One of the biggest concerns for companies, governments and organizations in the 21st century is security. And, while computers, the Internet and all the benefits of the digital world have come to make our lives much easier. It also means a greater risk to our personal information.
Well, when most of it is stored in digital terminals, connected in one way or another to the Internet. There is always the risk of criminal hackers accessing it. Obtaining through illicit means information that goes from our bank details, through our identity documents, and reaching delicate state secrets.
Therefore, cybersecurity is one of the most important issues today. To create mechanisms that are able to face the negative consequences of the digitalization of information. And prevent cybercrime from accessing sensitive data, both for people and for entire countries.
And in this fight to get criminals away from sensitive information, Blockchain technology is at the forefront. Well, the operation of blockchains is specifically designed to keep anyone who does not have access to information away.
What we can understand if we understand the operation of Blockchain technology. Well, as we have commented in our ABC Crypto, blockchains have essentially two mechanisms that protect them against any hacking attempt.
On the one hand, the information in the blockchains is distributed. That is, the data that is entered into a Blockchain is not stored in a single site, or a single terminal. But there are tens, hundreds or thousands of nodes in the network, all of which are responsible for safeguarding the information.
What in the first place means that to modify a data of the chain, it must be changed in all the nodes of the network. And secondly, in order to break the security of the Blockchain, a computing power of more than the sum of all the equipment that maintains the blockchain must be possessed.
Also, the information that is entered in the blocks that are part of the chain, are protected with cryptographic technology. That is, to understand what is written inside a Blockchain. The hacker would have to own the codes behind the encryption of the information, which makes even the information in public blockchains secure.
Blockchain is the safest technology today. Are cryptocurrencies safe?
Understanding this situation, and since cryptocurrencies are driven thanks to Blockchain technology, we could conclude that they are unenforceable. Which is true, at the same time it is false, and we will explain it below.
And, indeed, a cybercriminal who wants to modify the data that has been validated in the blocks of a public Blockchain will have a very difficult time. Well, chains like Bitcoin or Ethereum have so many participants lending their computing power to protect the network, and storing the information that appears in the blocks. That changing this data is simply impossible.
However, this does not mean that the crypto world is safe from any cyber attack. Well, if hackers cannot alter the data contained within the Blockchain. Yes, they can attack other sensitive points of cryptocurrencies, especially wallets and exchanges.
The Achilles heel of the crypto world
Let us explain this situation with a metaphor that we have already used on other occasions here in CriptoTendencia. Let’s think for a moment about our common bank account. We are confident enough that no hacker can enter the bank’s platform. And change the data that appears there so that the 10 dollars we have in our account are reflected in his.
However, if one day we decide to download a corrupt file in which a virus comes. And it proceeds to steal the secret key with which we access our account. A hacker might be able to access our bank account from his computer, and transfer all our money without any inconvenience.
This theft would have nothing to do with the security provided by the bank’s platform. But, on the contrary, with a weak point in our banking security: the passwords that protect our money. This being a situation very similar to the one that exists in the crypto world.
And, indeed, a hacker may not be able to modify the Bitcoin Blockchain, to alter the data of money transfers that appear there. But it is possible that a hacker can break the security of the wallet where we store our money. Or the exchange in which we keep our cryptocurrencies to carry out trading activities.
Therefore, cryptocurrencies turn out to be the safest form of money in the world. And at the same time, they have weak points that can and are in fact used by hackers to threaten our money. So to protect our crypto assets, it becomes necessary that we not only trust the good work of the Blockchain of them.
But we choose exchanges and wallets with sufficient security, and assume on our part all the precautionary measures we can, to avoid a bad surprise with our virtual currencies.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.