When users engage in cryptocurrency trade they know that exchanges hold their funds on their behalf. Therefore, it is crucial to offer a security system that is designed to keep users’ data and digital assets safe.
Clearly, we have seen huge security threats to crypto exchanges and users. Cryptocurrency thefts have crossed $4 billion in 2019, a serious jump from $1.7 billion for the entire 2018.
Blockchain industry’s core issues largely revolve around poor user account safety, leading to hacks which is followed by fragile asset retrieval processes. Most crypto exchanges lack a holistic security ecosystem; poor account safety and fund recovery systems, slow blockchain speed that leads to frustrating waiting time for transactions.
However, advanced technologies in public blockchain have the power to push the limits of blockchain technology to achieve security, scalability and sustainability.
GateChain, our upcoming blockchain dedicated to fund safety and decentralization is a practical solution to most problems around fund safety. Its innovative public blockchain comes with several unique features such as onchain-safety- account and customizable-time –delay-recovery feature to guarantee asset safety even after the leakage or destruction of the private keys.
“In 2019, $4 billion are gone in cryptocurrency thefts. Cryptocurrency exchanges lack a holistic security ecosystem for user security and fund safety and need to look into various dimensions of user security to radically increase user trust and prevent crypto hacks.
GateChain, for example, is an innovative public blockchain dedicated to fund safety and decentralization that we are building to redefine user security” -Marie Tatibouet-
The key challenge is security.
There has been numerous hacks of all sorts and as long as it keeps going the retails investors will continue to hesitate regarding crypto trading.
The other big challenge is the lack of trading automation.
While crypto exchanges at the moment don’t offer such functionality, traders tend
to use bots and external software which entails high risks. KICKEX users
can create postponed orders accompanied by both trailing stops and stop
losses that activate when the price of an asset reaches a certain level and
move along with the price to ensure the order is executed at the best market conditions available without any trader involvement whatsoever. Performed solely via internal KICKEX trading tools as can be seen are not available at any other digital asset exchange.
I think that many cryptocurrency exchanges right now are difficult to use for someone who is not tech-savvy. Also, the biggest exchanges are not decentralised, so there is the risk of witnessing another Mt. Gox.
Crypto exchanges still lack trust and regulatory clarity.
It’s almost weekly, if not daily, that we see exchanges suffering hacks. I also
have ongoing concerns that any exchange can be shut down nearly anytime because of regulatory uncertainty.
Many crypto exchanges lack HSM/HSP
Hardware security models where the crypto needs more than one signatures to move. KYC is just for namesake, the kyc is not actually done or verified. The must be a reporting system to a regulator.
Many Exchanges don’t have 2 fa and ip locking mechanism which is vulnerable. Many other things such as PGP etc also are not available is most exchanges.
Corporate structure and customer service are another two things which are crucial for new upcoming exchanges to look at.
Credits: Sidharth Sogani, Anne Szustek Talbot, Dr. Stylianos, Evgeniy Ivantsov, Marie Tatibouet, Diksha Sharma,JOIN OUR COMMUNITY