Cryptocurrency defenseless before hackers: truth or myth?

Cryptocurrency defenseless hackers: truth or myth?

Among representatives of the general public, who do not yet have a fairly complete idea of how a cryptocurrency market works, there is one prejudice that does not allow to draw a parallel between cryptocurrencies and traditional money.

The essence of prejudice is that traditional money has a physical expression. Regardless of the method of storage, they can be cashed at any time, held in hand, used in the calculations for purchases.

It’s not at all like that with cryptocurrencies. They exist only in intricate lines of computer code, and do not seem as tangible as traditional money.

Remarkably, existing at the level of computer code, they still do not seem so reliable – everyone knows that in modern conditions any code can be cracked. When it comes to an entirely virtual currency, the safety and distribution of which is not guaranteed and not controlled by anyone, can one be at all calm for the long-term fate of such savings?

Well, this argument has a certain rational basis. The reports of hacker attacks on cryptocurrency exchanges and wallets, the losses from which are calculated in serious amounts, add fuel to the fire from time to time. For example, as a result of the hacking of the Parity service, cryptocurrency holders Ethereum suffered losses amounting to about $ 85 million in July 2017 – of course, in the eyes of the average person it is extremely difficult to imagine that something like that would happen to traditional currency once.

Virtually every type of virtual currency has a particular vulnerability. Initially, the blockchain technology, which became the basis for Bitcoin and ensured its popularity, was fundamentally new and, like all pioneering technologies, was somewhat crude, although, of course, the accompanying tools — wallets, stock exchanges, and so on — were much more raw. Among other aspects, it concerned safety.

As soon as the bitcoin course grew, hackers from around the world turned their close professional attention to it. As a result of hacker attacks, critical vulnerabilities were identified, although, unfortunately, many paid for this knowledge money. Developers began to actively work on eliminating imperfections, some continued to look for ways to improve Bitcoin’s opportunities, while others created their own cryptocurrencies, some of which reached such popularity levels as lightcoin, ethereum and other currencies from the top of today’s ratings.

The problem is that in most cases, cryptocurrencies, including altcoins, are based on one concept and a similar principle of operation. For example, the differences between bitcoin and ethereum are significant, but not so much that it is possible to talk about fundamentally different phenomena, including in the security context. And since the phenomena are similar, then vulnerabilities are in similar places. For example, the flexibility of transactions in the case of Bitcoin and the errors of smart contracts in the case of ethereum are phenomena, although technologically distinct, but functionally similar.

Any new method of protection introduced made cryptocurrency more reliable and, as a result, more attractive, and this inevitably attracted new and new hackers.

A curious causal chain is obtained because of the hacker threat. which beginners are increasingly beginning to be crowded out by professionals.

Will the developers once protect their offspring one hundred percent – a question of questions. Probably, the cryptocurrency, to which hackers can not approach, will fly up to unimaginable heights. However, while methods of protection are invented by the human mind, it is not worth counting on it.

If one person invents a new protective technology, sooner or later there is another who hacks it – at least out of sports interest, and what to say about those cases when huge sums are at stake. This has always been the case in all areas, and it is unlikely that cryptocurrency will be an exception.

So, as long as the protection is not busy with a different mind than human, the risk of breaking into any protection will exist – the only question is that among the multitude of tools available on the market, only those that are able to ensure the maximum possible security of cryptocurrency savings are chosen.