Privacy and single points of failure are the biggest threats to crypto today
The post Privacy and single points of failure are the biggest threats to crypto today appeared on BitcoinEthereumNews.com. In the world of Web3, there are certain elements that have to be perfect for a platform like an exchange to work for its community. If users do not feel like the exchange is fair, they will leave. If they feel like the exchange is vulnerable, they will leave. If they feel like the exchange might allow their private information to be taken, they will leave. And if they think the exchange can’t offer them the services and perks they want…they will leave. There are a few problems with this. Yes, a user should be able to participate on an exchange with confidence. However, no platform is 100% secure. That said, there are definitely industry standards that should be followed to maximize protection. More than that though, platforms should be following best practices to keep their customers’ data in compliance with regulations. They should also keep the data private and protected, while the funds themselves should stay with the customers. So how can an exchange meet these high, but certainly reasonable expectations? Let’s dive in to see how exchanges should protect their communities, what happens when they don’t, and what other gaps can sneak in and hurt customers. Balancing service and protection Creating a strong exchange does have some areas to balance. Protecting users can potentially limit services if not done correctly, and maximizing performance could potentially allow privacy vulnerabilities. However, there are some absolute best case elements that must happen to avoid serious risk. Any exchange should ensure they have institution-grade security, which means industrial encryption at a minimum. Because smart contract vulnerabilities can remain hidden for years, top exchanges work both internally and with third parties to be the first to find and fix these vulnerabilities. Audit specialists can help with increasing the quality. Even more, advanced solutions…
The post Privacy and single points of failure are the biggest threats to crypto today appeared on BitcoinEthereumNews.com.
In the world of Web3, there are certain elements that have to be perfect for a platform like an exchange to work for its community. If users do not feel like the exchange is fair, they will leave. If they feel like the exchange is vulnerable, they will leave. If they feel like the exchange might allow their private information to be taken, they will leave. And if they think the exchange can’t offer them the services and perks they want…they will leave. There are a few problems with this. Yes, a user should be able to participate on an exchange with confidence. However, no platform is 100% secure. That said, there are definitely industry standards that should be followed to maximize protection. More than that though, platforms should be following best practices to keep their customers’ data in compliance with regulations. They should also keep the data private and protected, while the funds themselves should stay with the customers. So how can an exchange meet these high, but certainly reasonable expectations? Let’s dive in to see how exchanges should protect their communities, what happens when they don’t, and what other gaps can sneak in and hurt customers. Balancing service and protection Creating a strong exchange does have some areas to balance. Protecting users can potentially limit services if not done correctly, and maximizing performance could potentially allow privacy vulnerabilities. However, there are some absolute best case elements that must happen to avoid serious risk. Any exchange should ensure they have institution-grade security, which means industrial encryption at a minimum. Because smart contract vulnerabilities can remain hidden for years, top exchanges work both internally and with third parties to be the first to find and fix these vulnerabilities. Audit specialists can help with increasing the quality. Even more, advanced solutions…
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