CryptoPotato
  • Beginners
  • Guides
  • Trade
  • ICO List
    • ICO List
    • ICO Evaluations
    • Airdrops
  • Crypto News
  • Buy
  • Language
  • Bitcoin For Beginners
  • Investor’s Guides
  • The ICO List
  • ICO Evaluations
  • Airdrops
  • Bitcoin BTC Price Analysis
  • Ethereum ETH Price Analysis
  • Ripple XRP Price Analysis
  • Crypto News
  • Market Updates
  • Interviews
  • Buy Bitcoin with Credit Card
  • bitcoin
    BTC$3,953.60
  • ethereum
    ETH$146.80
  • bitcoin
    BTC$3,953.600.0065%
  • ethereum
    ETH$146.800.472%
    • #Market Updates
    • #BTC Analysis
    • #ETH Analysis
    • #XRP Analysis
    • #Interviews
    Using Blockchain Technology to Solve Crypto Security Problems
    Home » Crypto News » Using Blockchain Technology to Solve Crypto Security Problems

    Using Blockchain Technology to Solve Crypto Security Problems

    Author: Arnon Benshahar Last Updated On Oct 10, 2018 @ 13:21 UTC

    As of this writing, cryptocurrency has been in existence for less than 10 years. From its origins as a real-life iteration of the musings of a bunch of IT and cryptography geniuses, cryptocurrency and, more importantly, blockchain technology, sparked an entirely new code of conduct for business practices. Blockchain added a depth and breadth to business operational possibilities that truly changed the world.

    Businesses jumped onboard. Industries from fiat financial companies, to transaction-based platforms, to the sharing community, saw what was possible with blockchain technology, and rushed to be a part of the blockchain world. A world where ICOs were funded in minutes and private investors were willing to place money on almost anything backed by a good idea and supported by a proven team.

    Unfortunately, hackers jumped onboard too. Despite strong and persistent cypherpunk advocacy of the security and privacy possibilities of a decentralized currency, as quickly as cryptocurrencies came into vogue, individuals with criminal intent found ways to circumvent the blockchain security and illegally profit from other people’s hard work.

    Ending before it begins?

    It all started with Mt. Gox. Founded in 2010 on the heels of Bitcoin in anticipation of an exponentially growing need, Mt Gox was one of the first cryptocurrency exchanges. They were never without controversy, mostly due to a completely unrealistic growth structure. From hacks to failures, to lawsuits, to regulatory issues, Mt. Gox struggled from the beginning. However, despite these challenges, the exchange continued to grow for over four years, eventually handling over 70% of all Bitcoin transactions.

    Mt. Gox growth came to an abrupt halt in 2014 when 850,000 bitcoins, valued at $450 million USD, were stolen from the exchange. The mess has still not reached an effective resolution, and it paved the way for countless future cryptocurrency security breaches.

    More recent security breaches resulting in large thefts, totaling $760 million in the first half of 2018, are definitely on the rise.

    Coincheck reported the largest known cryptocurrency theft in history in January 2018, with over $520 million NEM coins stolen off their platform from hot wallets. Coincheck is still operational and has even begun a repayment plan, compensating victims of the hack, but the threat origins and instigators are still at large.

    Ironically named crypto exchange Coinsecure suffered a $3.4 million USD theft in Q2 of 2018. It was the biggest hack to date of an Indian exchange. The Indian-based cryptocurrency exchange appears ready to return all losses to affected investors. However, there’s a catch, rather than replacing their BTC accounts, the exchange is willing to refund exclusively in Indian rupees. Pending a recovery of the stolen Bitcoin Coinsecure is willing to offer a full refund. However, with the thefts again still unresolved, investors will be compensated in rupees at 90% of their value at the time of the April 9, 2018 theft.

    Bitthumb, Bancor, and Bitcoin Gold also suffered crushing security breaches in this year, which is just over halfway over. The cryptocurrency space is looking bleak.

    Forthcoming Solutions

    With security issues not only growing but remaining unresolved, a solution needs to be reached. There is now even a Blockchain Graveyard, helpfully recording root cause data on blockchain technology security breach and failure rates. Thankfully, several options have been developed to combat the security threats blockchain platforms constantly face.

    Sentinel Protocol, for example, is well on its way to an exciting product release this month within their core product, the decentralized Threat Reputation Database (TRDB). TRDB is the database where reported and validated security threats are gathered and there will be two products using TRDB’s data, Sentinel Portal and the Uppward Chrome Extension.

    Sentinel’s robust TRDB will be its strongest tool to date, guaranteeing data integrity through a revolutionary crowdsourcing approach. All threat information, such as fraud, hacking, and security breaches, will be managed within the TRDB. By utilizing the inbuilt components of blockchain technology, Sentinel is creating a system that could bring real-world answers to the crypto-security debacle.

    sentinel_pro

    Uppward is a hacking and fraud protection solution for ICO investors. Using the data within Sentinel’s TRDB Uppward will provide security products prior to the implementation of Sentinel’s Machine Learning and Artificial Intelligence features.

    The Sentinal project is led by a real-life group of “Sentinels”, comprising a blockchain security team. The Sentinal team of security experts, ethical hackers, and organizational threat managers have been working on this blockchain database of threat data and cyber-hacking information, which supports rapid, thorough, and well-defined security responses to any and all blockchain security issues.

    The Sentinels use a blockchain distributed policy to crowdsource threat and risk information and data. Their services, which report hacking incidents, distribute security news and the latest pertinent information and validate threats and risks. These are all currently housed within the Sentinel Portal, a growing and flexible consensus and incentive-based system.

    Additionally, Sentinel Protocol provides specific and customizable tools blockchain companies can lean on to mitigate risk. Sentinel will eventually offer a machine-learning based filtering wallet to combat scams, neutralize malicious URLs and Malware, and identify unexpected behavior. D-Sandboxing is also available, tests for suspicious file and link activity, as well as augmenting threat tests, simulations and generating threat vectors.

    SafeNet ProtectServer is another first line of defense available to blockchains. SafeNet has developed Hardware Security Modules (HSMs), which provide flexible and secure encryption, signing, and authentication services to application developers.

    SafeNet offers several key features. Offerings are customizable and scalable, for a variety of platform configurations and network needs. With available APIs, SafeNet’s HSMs can be integrated easily into custom or third-party applications. SafeNet also enables emulator software, native algorithm support, and validation services for all blockchain platform software requirements.

    Other blockchain security solutions have opted to pursue different routes. Ledger Blue is a security-centric wallet, built around the security features Ledger already offers, with an added element of user connection. REMME is a password-free security and authentication system appropriately targeting security exchanges, the most hacked corner in cryptocurrency today.

    With all the bad news emanating from blockchain-based business applications, it is encouraging to see the emergence of a number of strong platforms, committed to ensuring a safe and secure user experience for crypto investors, enthusiasts, and entrepreneurs.

     


     

    Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.

    More news for you:

    Ethereum Price Analysis Feb.22: ETH Consolidates Following Breaking Above $150
    By Yaz Sheikh  /  Feb 22, 2019

    Ethereum Price Analysis Feb.22: ETH Consolidates Following Breaking Above $150

    Bitcoin Price Analysis Feb.22: Consolidation Time – Will BTC Be Able To Gain Momentum For a $4K Breakup?
    By Yuval Gov  /  Feb 22, 2019

    Bitcoin Price Analysis Feb.22: Consolidation Time – Will BTC Be Able To Gain Momentum For a $4K Breakup?

    Binance and NEO Accused By Blocknet For Stealing Info Used To Build Binance DEX
    By Toju Ometoruwa  /  Feb 21, 2019

    Binance and NEO Accused By Blocknet For Stealing Info Used To Build Binance DEX

    Fetch.AI: Project Review And Rating Ahead Of Fundraising (Binance Launchpad)
    By Toju Ometoruwa  /  Feb 21, 2019

    Fetch.AI: Project Review And Rating Ahead Of Fundraising (Binance Launchpad)

    Binance Coin (BNB) Price Analysis Feb.21: Time To Rest? Negative Divergence Following 90% Monthly Surge
    By Yaz Sheikh  /  Feb 21, 2019

    Binance Coin (BNB) Price Analysis Feb.21: Time To Rest? Negative Divergence Following 90% Monthly Surge

    Crypto Daily Volume On The Rise: The Highest Daily Volume Recorded Since April 2018
    By Ali Raza  /  Feb 21, 2019

    Crypto Daily Volume On The Rise: The Highest Daily Volume Recorded Since April 2018

    Bitconnect Investigation: FBI Seeks For The Victims
    By Toju Ometoruwa  /  Feb 20, 2019

    Bitconnect Investigation: FBI Seeks For The Victims

    TradingView Introduces a New Crypto Dashboard and Receives Bitcoin as a Payment Method
    By Ali Raza  /  Feb 20, 2019

    TradingView Introduces a New Crypto Dashboard and Receives Bitcoin as a Payment Method

    Ripple (XRP) Price Analysis Feb.20: Following The Sentiment, Ripple Broke Up The Symmetrical Triangle
    By Yaz Sheikh  /  Feb 20, 2019

    Ripple (XRP) Price Analysis Feb.20: Following The Sentiment, Ripple Broke Up The Symmetrical Triangle

    Is Now The Time to Buy Bitcoin? The 2019 Edition
    By Toju Ometoruwa  /  Feb 20, 2019

    Is Now The Time to Buy Bitcoin? The 2019 Edition

    Bitcoin Price Analysis Feb.20: Following Massive Gains, Could BTC Break-up $4000?
    By Yuval Gov  /  Feb 20, 2019

    Bitcoin Price Analysis Feb.20: Following Massive Gains, Could BTC Break-up $4000?

    The Market Turned Dark Green – Have We Seen The Bottom? Crypto Market Update 19-2-19
    By Yoni Berger  /  Feb 19, 2019

    The Market Turned Dark Green – Have We Seen The Bottom? Crypto Market Update 19-2-19

    Bitcoin Is Facing $4,000: Price Analysis Overview Feb.19 – Bitcoin, Ethereum, Ripple, EOS and BNB
    By Yoni Berger  /  Feb 19, 2019

    Bitcoin Is Facing $4,000: Price Analysis Overview Feb.19 – Bitcoin, Ethereum, Ripple, EOS and BNB

    Developer’s Mistake? Someone Just Paid $450K (3,150 ETH) For Ethereum Transaction Fees
    By Mandy Williams  /  Feb 19, 2019

    Developer’s Mistake? Someone Just Paid $450K (3,150 ETH) For Ethereum Transaction Fees

    EOS Surges 25% Following Breakout of MA-100: Is $4 In Sight? Price Analysis Feb.19
    By Yaz Sheikh  /  Feb 19, 2019

    EOS Surges 25% Following Breakout of MA-100: Is $4 In Sight? Price Analysis Feb.19

    $200B SBI Holdings CEO: Bitcoin’s Value Is Zero, Ripple Is The No.1 Cryptocurrency
    By Toju Ometoruwa  /  Feb 19, 2019

    $200B SBI Holdings CEO: Bitcoin’s Value Is Zero, Ripple Is The No.1 Cryptocurrency

    6 Facts You Didn’t Know  About Craig Wright – The Man Who Claimed to be Satoshi Nakamoto
    By Ali Raza  /  Feb 18, 2019

    6 Facts You Didn’t Know About Craig Wright – The Man Who Claimed to be Satoshi Nakamoto

    Ethereum Price Analysis Feb.18: ETH Finds New Monthly Highs Over $140
    By Yaz Sheikh  /  Feb 18, 2019

    Ethereum Price Analysis Feb.18: ETH Finds New Monthly Highs Over $140

    Should Ripple Be Worried Following JP Morgan’s Announcement Of Its New Cryptocurrency?
    By Toju Ometoruwa  /  Feb 18, 2019

    Should Ripple Be Worried Following JP Morgan’s Announcement Of Its New Cryptocurrency?

    Bitcoin Price Analysis Feb.18: BTC Looks Bullish Breaking Up The $3600 (As of now)
    By Yuval Gov  /  Feb 18, 2019

    Bitcoin Price Analysis Feb.18: BTC Looks Bullish Breaking Up The $3600 (As of now)

    About the Author

    Arnon Benshahar View all posts by Arnon Benshahar

    Arnon Benshahar is an enthusiast data scientist. An expert in biodata and machine learning algorithms. Passionate about blockchain technology and algorithms. Contact Arnon: LinkedIn

    « Previous Post
    Next Post »

    Comments

    Join Our Community

    • Facebook

    • Twitter

    • YouTube

    • Telegram
    Recent Reviews
    bitmex
    9.7
    etoro
    8.8
    plus500 *
    8.5

    Recent Articles
    Is Now The Time to Buy Bitcoin? The 2019 Edition

    Is Now The Time to Buy Bitcoin? The 2019 Edition

    The Bitcoin Chart 2017-2018: The Best Lessons you can learn About Trading Psychology, Discipline and Bubbles

    The Bitcoin Chart 2017-2018: The Best Lessons you can learn About Trading Psychology, Discipline and Bubbles

    Binance Jersey – Beginner’s Guide to To The FIAT-Crypto Exchange

    Binance Jersey – Beginner’s Guide to To The FIAT-Crypto Exchange

    What Is a Death Cross? And What’s The Relation To BTC Breaking Down From The $6K Area In 2018?

    What Is a Death Cross? And What’s The Relation To BTC Breaking Down From The $6K Area In 2018?

    CloudBet
    Become a CryptoPotato VIP

    Receive our market updates and crypto trading tips and news by email (We hate spam, and send max of 1 weekly mail):

    Become a CryptoPotato VIP
    Receive our special crypto tips and news by email: We hate spam, and send max of 1 weekly mail
    About
    About Us | Contact Us

    Advertise on CryptoPotato

    Terms of service | Privacy Policy | GDPR

    Scholarship
    Disclaimer
    Recommendations and Information found on Cryptopotato are those of writers quoted. It does not represent the opinions of Cryptopotato on whether to buy, sell or hold any investments. Investors should be cautious about any recommendations given. All investors are advised to conduct their own independent research into individual coins before making a purchase decision. Use information at your own risk.
    © Copyright Cryptopotato Team 2016
    Scroll to top