Of the 7745 people responding, the majority felt security was the biggest barrier to cryptocurrency. Security? Really? I lifted my response straight from my previous article, “Only Criminals Use Bitcoin…”:
A properly managed blockchain is infinitely more secure than our current method of warehousing the personal, sensitive data of hundreds of millions of users behind numerous single points of failure.
How many companies have your credit card details? Your financial information? Your banking and investment account numbers? And how have they secured them? They’re generally stuffed into a database, en masse, where a single phishing expedition can expose them to the outside. Every last account.
Try that with a distributed ledger.
Yes, hacking individual crypto accounts does happen. Often this is more a function of user error — failure to use a hardware wallet or leaving currency exposed on exchanges. But when properly executed, crypto transactions are nearly impossible to compromise from wallet to wallet. Still not convinced? Use a new encrypted identifier for every transaction you make.
Think about that next time you hand your credit card to the waiter or give out the three digit security code for the thousandth time.
Lately, many security issues have cropped up in the wild west of the Alt-Coin ecosystem. These failures can often be traced to shoddy administration or poorly vetted code which aren’t concerns limited solely to blockchain implementations.