Is Blockchain technology secure? What really makes you lose money?

12 Feb

Is Blockchain technology secure? What really makes you lose money?

Basic Knowledge, Instruction

The emergence of Blockchain technology creates a milestone that helps us change our way of recognizing and evaluating society. The most significant potential of this technology is the provision of smart contracts: trade agreements will be confirmed without intermediaries so information will not be disclosed.

Long with Bitcoin and Trade coin, Blockchain technology is a concept that many people are interested in. While the problem of hacking cryptocurrency is causing many investors to worry, questions related to the cause of money loss and security issues of Blockchain technology are frequently mentioned. Let’s find out more about Blockchain and what causes money loss.

The biggest advantage of the Blockchain technology platform is its security

The biggest advantage of the Blockchain technology platform is its security

What is Blockchain Technology?

Blockchain is one of the new breakthrough technologies and is used extensively in many fields, not just for cryptocurrency. Today, finances, banking, retail, transportation, manufacturing, and telecommunications are all areas where this advanced technology can be applied. However, the largest application trend is finances, banking and internal audit. Blockchain is officially launched in 2015 and is expected to move further in the future.

This technology allows users to transmit data securely with classically linked blocks of information and expand over time into complex encrypted systems. Each block will contain information about initialization time and be linked together.

The emergence of Blockchain technology creates a milestone that helps us change our way of recognizing and evaluating society. The most significant potential of this technology is the provision of smart contracts: trade agreements will be confirmed without intermediaries so information will not be disclosed.

This technology is also considered as the core of everything in the internet world. Unfair or fraudulent efforts in the internet will be minimized and electronic devices can communicate with each other safely and transparently.

Due to this potential, Blockchain is being widely applied in many companies and large corporations in the world. It is also considered to be more potential in the future.

The security of Blockchain technology

Is Blockchain technology safe?

It is worth mentioning that Blockchain is designed to prevent data changes. Therefore the information in Blockchain can not be changed. And if you want to add more information, you need the consensus of all the nodes.

Even if a part of the new technology system falls apart, the remaining computers will still work to protect the information. This gradually confirms the safety of Blockchain.

More specifically, the transmission of data in Blockchain does not require intermediaries to confirm the information. This system consists of several independent nodes and is capable of high authentication. Through this technology, Bitcoin is passed directly from buyer to seller.

With the ability of  reducing the possibility of errors, anti-modification data, and high security features … Blockchain is highly appreciated by technology developers  for its intelligence and security. Many people do not hesitate to call it a new guard of the bank. It is much more prominent than any current technology that has been applied nowadays.

Blockchain is considered as a protective mechanism with ultra-high technology to ensure the safety of all Bitcoin transactions and high data security. Advantages of Blockchain:

– Blockchain does not need  intermediaries to transfer data, ensure the convenience and high level of security

– The information recorded in Blockchain can not be changed but can be supplemented by strict regulations.

– It applies advanced technology to prevent information theft.

It is referred as the company’s accounting books, where digital money is strictly monitored. This book is shared with the participants and everyone can check out the transactions recorded on the book except for manipulating and correcting them. Everyone who joins Blockchain will update and keep that notebook. Modifications are extremely rare and must follow strict regulations as well as  agreement of all participants.

All of these advantages, according to security experts, are extremely safe and hacking blockchain is extremely difficult and seems to be impossible. Therefore, this technology is expected to go even further.

In the past, there were many comments that Blockchain still has many holes, so many cases of money loss is still blamed for technological weakness. But the practical applications in the cryptocurrency market as well as many other areas have demonstrated the advantages of this technology. So if the blockchain is highly secure so what is the main cause of the loss of money? Let’s find out.

Why are you losing money
Why are you losing money?

What really makes you lose money?

Many people still remember the Bitthumb case – the biggest Bitcoin and Ethereum exchange in Korea, was hacked in June 2016. As we knew Bitthumb holds a 75% market share of Bitcoins in Korea and 10% of total global transactions. This makes the exchange attract many investors, including small and experienced ones. And hackers had targeted the ignorance of some investors to attack this ex.

According to the news, hackers attacked an employee’s personal computer and used this information to convince customers to provide them the one-time password. After getting the password, hackers got access to the client account on Bitthumb platform and transfered money to their account. So the main reason is that the server on this exchange was attacked not the blockchain technology. And this theft is not blockchain technology’s fault as some people used to think, it is the result of the negligence of an individual working in Bitthumb.

From this case people wonder why employee holding the information of hybrid customers did not encrypt data on a personal computer? Why do not the trading exchanges guide customers more about security to avoid disclosure of password information?

Due to the previous hacking of cryptocurrency and many other hacking incidents as well, hackers’ target is not blockchain technology, because they know this is a solid and inviolable foundation. The way they hack is to exploit the loopholes of the users. Most hackers attack the user with different strategies to steal the activation code and then use it to open the account and make a transfer to their spam account. Most users do not have secure cryptocurrency storage. The most profitable attacks will aim at the service of storing the activation code of a large number of users.

According to some sources of information, hackers will steal money through 3 steps: get the activation code, launder cryptocurrency and convert to cash. In order to steal the code, they try to get into accounts on the Internet, such as email accounts, social networking accounts, and attack users’ wallets.

So what really makes you lose money here is the lack of understanding of how to protect your account or the loopholes of the exchanges or the storing activation code service, not blockchain technology. So the best way to keep your account secure is to learn and pay more attention to your account security.

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