The most common gateway to be a part of the cryptocurrency ecosystem is an exchange. You can buy and sell cryptocurrencies on these exchange platforms. To assist with buying and selling, these exchanges offer additional features as well.
A cryptocurrency exchange platform acts as a mediator between the buyer and seller and hence can be thought-about as a service provider.
As you are at the receiving end of service, it is the exchange’s responsibility to look after the security of the platform.
For a little background information, it is a website (there are some desktop and mobile versions available, but the most used is website) that is connected to the internet 24×7. Thus, needless to say, that security threat prevails, and the site can be attacked easily. The attack results in loss of funds, and ultimately abrupt shutdown of the exchange.
The thing is that when the concept of cryptocurrency is so fascinating then why to compromise on security. It should be in the state of being free from danger and threat. Even though an exchange offers the easiest way to acquire cryptocurrency, it cannot take the security of traders’ funds as granted.
It is due to security concern that prevents many cryptocurrency enthusiasts to join cryptocurrency trading. As a proof of the fact, there is a survey result derived from Encrybit, which states that 40% of the traders consider security as a significant concern on cryptocurrency exchanges. It is quite evident from the current and past hacks of reputed cryptocurrency exchanges.
What can be done for Better Security?
Encrybit is really into developing a traders’ friendly exchange and to fulfill this aim, taking care of security concern is a must. If the fear of losing funds is eradicated, then the enthusiastic traders can join in, and even the existing traders can focus more on the trading process rather than worrying about the funds’ security.
If you are not aware, on an exchange the private keys of your exchange wallet are with the exchange provider, so if it is hacked, you lose all your funds. Thus, an exchange should take all the preventive measures to avoid the security hacks. The most common precautionary measure is to store the funds in cold wallets so that even if a hack occurs; a majority of the funds are saved.
Instead of merely stating the preventive measures, implementing them in real to obtain goal-oriented results is the motto of Encrybit. About this, the team has already carried out vast research for security concerns. It includes analyzing the loopholes of previously hacked exchanges so that the same mistake does not occur in their exchange. As a part of the conclusion, the significant vulnerabilities in such attacks were found to be in API transportation. API and Web Service Protocols can be easily attacked to gain control of the transactions and the system. APIs are used for the connection between platform and algorithms or third party applications, which are less secure and thus increasing the chances of successful attacks.
To strengthen the security of its exchange platform, Encrybit has hired multiple security advisors and information security experts to have the best security architecture services in the industry. The security layers of the exchange platform are toughened with proper SDLC methodology. Other than that, its security assessment practices include secure and modularized coding methods, secured server infrastructure, application and server penetration security and ethical hacking practices. All these methods make sure that the security standards are correctly implemented.
Summary
Enhancing the security of a cryptocurrency exchange is inevitable to attract more users to cryptocurrency trading. Also, to boost the confidence of existing traders and not make them worry much about the security of their funds. The upcoming exchange Encrybit aims to solve this concern by implementing multi-tier security on its exchange platform.
The private sale of Encrybit’s ENCX tokens is open now. Early investors can get a chance to get up to 40% discount.