One of the biggest concerns for most users is the safe custody of their digital assets. Cryptocurrencies are the most common digital assets in recent times. There have been instances where hacks into digital wallets have led to the loss of billions of dollars. With the various security breaches on crypto exchanges, there have been measures to improve the security of digital assets. One of the options that crypto exchanges are considering is a secure multi-party computation technology or MPC. This is a modern technology that ensures that the crypto assets are safe at all times.
Top Crypto Exchange Hacks of All Times
There have been quite some big hacks in the crypto world, which led to hefty losses. One of the most remarkable ones is the scandal that targeted Mt. Gox, a DEX in Tokyo. The exchange held over 70% of the Bitcoin transactions and there were a series of attacks between 2011 and 2014. This accounted for the loss of huge amounts of BTC. It is estimated that customers lost assets with an estimated value of $460 million, which is one of the biggest attacks. In a recent case,
Coincheck hit the headlines in 2018 after the biggest crypto heist took place. There was a lapse in the hot water security and as such, investors and traders lost over $500 million of assets. It is evident that there are so many criminals who are looking for every possible way to steal cryptocurrencies. One of the main things that crypto users need to check when putting their money in an exchange is the type of security provided. Always keep in mind that cryptocurrencies are decentralized in nature and as such, you can lose them without a trace.
Precautions Crypto Users Need to Take
There are a number of red flags that you need to watch out for. While there are so many Bitcoin Billionaire there are others that are risky. If there are any lessons to learn from the previous crypto heists, hot wallets are an easy target for hackers. Every trader must ensure that the crypto exchange they are using is taking all the necessary measures to safeguard their assets. Most of the exchanges are unregulated and as such, they pose a great risk to your cryptocurrencies.
MPC Technology to the Rescue
Crypto exchanges are working tirelessly to ensure that crypto users are protected and their assets are secure. If you can find an exchange that uses modern MPC technology then you can be sure that your digital assets are safe and secure. There are different teams of experts who are working tirelessly to ensure that the crypto industry is safeguarded from security threats. Multi-party computing is an advanced technology aimed at improving the security of crypto wallets.
As the name suggests, there are multiple parties who will get involved in computations, with the details of each party remaining private. This is a keyless technology and as such, it resolved the issues of private keys being stolen. In the place of traditional private keys, there is an MPC key that is distributed among the parties. The key is encrypted and split, which means that it will never be fully revealed. The specific parties will need to authorize a transaction before it goes through and this has improved the security of crypto assets.
Final Thoughts
There is a significant improvement in the security of crypto wallets, thanks to MPC technology. This is one of the measures that has boosted the confidence of most crypto users and attracted parties that were initially concerned about the security of their digital assets.
