Connect with us

Plato Vertical Search

Blockchain

The Growing Need For Digital Asset Security

Coinbase Suffers Security Breach From MFA Flaw With 6,000 Users Affected

Institutional money is coming to the crypto space, and Bitcoin, Ethereum, Cardano, and most cryptocurrencies are more accessible than ever. However, the amount of money flowing in through new channels creates some issues. The more money that comes in, the more will need to go to maintain the security of those assets. Crypto is easy to trade, and therefore easy to lose.

The advent of cryptocurrency brought about a new set of problems for the modern world. While the advantages of crypto are innumerable, the risks are significant too. There are layers upon layers of risk baked into the crypto market. As the crypto world grows more complex and more people inevitably take part, scams, hacks, and theft will be endless. Crypto is a complex space to comprehend and explore.

The inherent nature of Bitcoin secures your ownership. Someone else can’t move your Bitcoin without your keys. It is significantly easier to trick someone into giving their keys or assets away. That will always be the case. Fortunately, there are free and secure ways to store your crypto for the retail investor and user. If you want an extra layer of security, you can spend around $50 on a cold wallet. A cold or hardware wallet directly from the manufacturer’s site is generally the easiest and safest option for the average user with a substantial sum in crypto. But what about corporations or governments?

Large holders like Grayscale hold their assets with large custodians; they keep their BTC in a cold wallet with Coinbase. The service isn’t cheap. The need for specific protocols and measures to protect crypto on a corporate scale will continue to proliferate with the adoption of Bitcoin as a treasury asset.

There have already been billions of dollars stolen, lost, or destroyed in countless rugs and scams, exchange hacks, and false promises. It mostly happens to the retail investor. However, the wealth generated by early crypto adopters made some of these individuals institution-level market makers – and you don’t need to look very long or hard to find an article about lost cryptos.

A $500 million corporation can’t afford such a mistake. A well-run company won’t throw their assets away to a simple scam, but that doesn’t mean they’re impervious. They’ll either hire someone or outsource it. The amount they hold would scale with the service price or wage.

Brink’s is a $3 billion company because banks or jewelers trust them with transporting and delivering extremely high-value assets and large amounts of cash. As the value of the assets they transport rises, so does the price of their services. The same goes for the crypto world; we see unique ways to assess, audit, and secure projects. Projects like CertiK are leading the way, providing novel ways to research and learn about new protocols, platforms, and spaces. The growth won’t stop there.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://zycrypto.com/the-growing-need-for-digital-asset-security/

Latest Blockchain Streams

Blockchain

Financial markets, built on the premise of speculation, are natural breeding grounds for volatile price action. Crypto markets, in particular, are notorious for their...

Blockchain

NFT trading is coming to Facebook and Instagram, according to a report from The Financial Times. Meta, formerly Facebook, is reportedly working on plans...

Blockchain

The SEC rejected the spot Bitcoin application from Skybridge giving a plethora of reasons for their decision. The regulator had previously delayed giving a...

Blockchain

Blockchain-based play-to-earn massively multiplayer online (MMO) strategy game Heroes of Mavia has closed its $5.5 million seed funding round. Several top investors such as...