Flaws that make Cryptocurrency vulnerable to attacks.
July 20, 2018 11:01 am,
The Cryptocurrency is based on the Blockchain technology that provides strong security in the transaction. It is a proven fact that the blockchain has an impressive reliability. However, the security of Cryptocurrency is irrelevant if the exchanges are not secure. Both Cryptocurrency and the exchange that stores the Cryptocurrency can be attacked or compromised in a variety of ways:-
- Compromised Credentials- A certain number of users must be authorized to access Cryptocurrency exchange. In the case of cryptocurrencies and Cryptocurrency exchanges, customers, Cryptocurrency owners and Cryptocurrency exchange administrators represent relatively easy targets for attackers. Compromised credentials are one of the main reasons.
- Cryptocurrency Code Vulnerabilities- No code is invulnerable. The code underlying a Cryptocurrency exchange can contain vulnerabilities that can be exploited to hack transactions.
- Lack of Hot Wallet Protection- Cryptocurrency exchange servers and storage networks maintain live pools of digital currency, called hot wallets. The hot wallet should be secured using multi-signature private keys, providing distributed security and ensuring that a single key cannot gain access. But if the hot wallet itself is not protected properly or lacks sufficient security controls, the Cryptocurrency in it is vulnerable to theft.
- Lack of Roles Separation- There should be clear and defined roles. It may define who has access to what information and to set clear rules for when access is given.
- Test Accounts- Such accounts are neither effectively managed nor well monitored. So the attackers have access to these kinds of networks.