Bitcoins and digital security are two topics that affect us now more than ever. Some unprecedented challenges that pop up with Bitcoins are, for example, the ‘real’ value of money and how to protect it in digital environments. Let’s see what aspects we need to observe to properly address the challenges that bitcoins and digital security imply.
Bitcoins and digital security
Cryptocurrency – Bitcoins
Bitcoins are the first virtual currency listed in 2009. Among the names that sound regarding its creation, Satoshi Nakamoto is the most frequent we hear. All we know for sure, it’s that this is nothing but a nickname name that hides the real identity of the creators of the bitcoin concept.
Then, Bitcoin is an electronic currency that operates on a decentralized, independent network. That means that Bitcoins do not depend on a central banking entity to support its existence as for example, Dollars or Euros.
Here is where the change in our perception we talked about at the beginning of this post becomes more evident: How am I guaranteed that an account in bitcoins is actually real; if it only exists in virtual environments?
Simple: Cryptocurrency is perfectly exchangeable in hard cash; or if you prefer, for goods/or services. Security protols backup guarantee that both, exchange and transaction.
In the same fashion, transactions between bitcoin users register into the Blockchain; and the Blockchain is as its name points: It’s a block of chains constituted by a distributed database. This means it does not reside on a single machine but in several, and that is the base of all its security logic.
Thus, each transaction uses encrypted blockchains that connected among them. This is the reason why bitcoins are also known as cryptocurrency, somehow backed-up by hard money.
On the other hand, digital security surrounding bitcoins has always been shrouded in suspicion. In such regard, the very Edward Snowden textually said in an interview:
“Protocol is very weak and has multiple sides for doing transactions , same as a very weak structure that makes it vulnerable to people who are trying to take 50% of the network.”1
To date, however, reports of exploited vulnerabilities involving cryptocurrency are still unknown. Nonetheless, what it actually exists; is the possibility that hackers modify digital security protocols to inject some kind of malware. Thus, installing bots on Blockchain computers database in order to achieve a DDoS attack.
Also, it exists the BGP network protocol. BGP protocol exchanges information between different ISP (Internet Service Provider). Then, BGP routers command data to be sent from one point to another.
As simple as it is, this protocol sets aside digital security because at the time when it was created; the only premise was to make Internet to work. Besides, cyber attacks were not considered as a possibility, and even less a reality to come true.
Another aspect to take into consideration is the end users. We mean, Blockchain system may be doubly or triply encrypted from end to end, using the most innovative and reliable digital security protocols; but if end users lack security criteria, no protocol will be able to protect them from becoming a potential victim of a cyber attack.
The true relationship between Bitcoins and Digital Security
To be perfectly honest, all these cases may occur on any system or application that uses the Internet. In simpler words, the so-called security breach in the relationship between bitcoins and digital security is rather a possibility instead of a proven reality.
Perhaps the origin of the poor reputation surrounding the relationship between bitcoins and digital security; is that cryptocurrency has become the preferred currency for transactions on the fringes of the law. This boom obeys without questions to the anonymity, speed, and reliability that its protocols represent.
Now, think about this: Do you know what security systems can help you to protect your digital assets, transactions with cryptocurrency included? We invite you to discover them here with us.