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INFLUENCE OF HACKS ON CRYPTO COIN EXCHANGE PLATFORMS

Mon, 05 Apr 2021, 06:06 am UTC

There are, however, nothing with advantages without disadvantages. Technological advancements in the crypto/financial sector of the economy did not just appear on merit alone. Some demerits were borne alongside. One of these demerits is hacks. The issue of cybersecurity has been in play since the advent of the internet, where everything is now done digitally. It opens the whole network to series of attacks from known and unknown sources. Although the crypto space runs on very sophisticated technology, mostly peer to peer, the system is still open to hacks and other vulnerabilities.

There have been lots of hacks and malware in blockchain technology. Some of them have also helped to make the crypto community more substantial and more secure. There are no known reasons why there are vulnerabilities in the crypto niche nut one of the main reasons behind this could be a result of the number of transactions being carried out on every blockchain per day.

One of the reasons why the crypto space is opened to attack is because transactions are open source. And it's on a blockchain where every transaction is recorded. Everybody has the opportunity to view all transactions carried out in the blockchain via the order book. However, these things were merits that point towards transparency. Once it's reversed, it's become demits.

Recent attacks in the crypto space

Some of the recent and most significant crypto hack of all time and their mode of attacks. Be sure to note that the developers of this software calculated these attacks, but hackers will always look for every slightest loophole they can find to launch their attacks.

● Ethereum classic 2019

One of the crypto exchange platforms, Coinbase, noticed in January 2019 that an attacker has gained access to almost half of this blockchain's computing power. With this, he was able to rewrite the transaction history. The effect of this is the "double spend." he made it possible to spend the Ethereum classic currency more than once - even when the first transaction was successful. $1.1 million was said to have been mismanaged, although Coinbase argued no transaction was carried out successfully. Another crypto coin exchange platform, gate.io, also reported a mysterious hack that cost over $200,000, although the hacker was said to have returned half of the looted funds the next day.

Within two years, 2017-2019, hackers have stolen nearly $2 billion worth of crypto, mostly from exchange platforms. Hence, it's pertinent you partner with a very secured exchange where your funds and transactions are 100% safe. Evonax remains one of the top 3 best and secured exchange platforms where you can trade crypto anywhere worldwide.

● Bithumb 2019

This hack is one of the biggest crypto hacks in the world. It recorded a whopping $30 million worth of tokens stolen on June 19, 2019. However, the platform promised to pay every penny stolen back to her member; this hack left Bithumb in a rather unpleasant condition. It was formally ranked top but lost its position moving down the rank as a result of this hack. Most users are now skeptical of trading on the platform as a result of their previous record. The reason for this attack was the vulnerability in the type of wallet adopted by Bithumb instead of the secured "cold wallet."

● Coincheck 2018

In the early years of 2018, Coincheck, a Japanese crypto coin exchange, suffered hacks that cost $534 million. Just like those mentioned above, a "hot wallet" was the genesis of the attack. This hack was even more extensive than the Mt.Gox hack, described as the biggest hack in the history of cryptocurrency by the President of the Exchange. Another traditional financial company later bought this exchange in Japan known as the Monex Group, and it has since then continued to operate.

How the hacks have helped improved the crypto coin exchange niche

Thanks to the hacks, the crypto space is now more secured than ever. One of the main reasons why hackers usually target some exchanges is their mode of storage. As mentioned above, the exchange uses "Hot wallet" instead of the more secured "Cold wallets." Now, all major big exchange platforms use cold wallets to store their customers' coins and secure assets.

With hacks exposing vulnerabilities in the crypto coin exchange sector, developers must understand the need for constant and regular system upgrades. Hence, as technology advances, the crypto coin exchange platforms also have to top their games by staying updated. Hacks and cyber-crime are indeed punishable by law, but the merit remains an indicator for better improvement of most cryptos coin exchange platforms.

This article does not necessarily reflect the opinions of the editors or the management of TokenPost

TokenPost | [email protected]

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