Thanks to blockchain technology, cryptocurrencies are the most secure assets on earth because it’s almost impossible to hack – so how do cryptocurrencies get stolen?
Throughout this article, we explore the security features of cryptocurrency and outline the reasons why hackers manage to steal Crypto assets.
Crypto Is Considered Hack-Proof, Here is why:
Cryptocurrencies are considered hack-proof because of the community-based nature of blockchain.
Without getting too technical, blockchains are secure ledgers that record and encrypt changes (transactions).
The entire ledger is viewable across all members of the chain, making it impossible to make alterations.
Instead of having a governing body or individual sitting at the top validating changes, the proof is carried out across the community, which is why crypto is referred to as decentralized finance.
With each change of the blockchain being processed and encrypted in chronological order, it’s impossible to hack.
So far, blockchains like Bitcoin have never been hacked or broken.
What Happens If a Crypto Theft Is Attempted?
As mentioned above, there is not only one single blockchain ledger file. Instead, thousands of versions are copied across the world and stored on nodes, which contain details of every single blockchain transaction ever made.
To be successful in a blockchain attack, a hacker would need to successfully access 51% of a blockchain’s nodes.
What About 51% Attacks?
Transaction authorizations and blockchain changes are built around the community, meaning 51% of a blockchain needs to agree for a change to take place.
Therefore, a hacker would need to seize control of 51% of a blockchain’s computer before they were able to edit the ledger – allowing them to process previous transactions again.
However, this is extremely difficult and has never happened to Bitcoin, but it did happen to the now redundant Ethereum Classic.
How Do Crypto Thefts Happen Then?
We’ve established beyond doubt that blockchain is almost 100% secure from attackers, so how do cryptocurrencies get stolen?
In the majority of cases, crypto assets are stolen because they’re not stored properly, or private keys aren’t looked after.
If private keys are stolen, anyone can empty a crypto wallet or make fraudulent purchases.
Although blockchains are secure, there are vulnerabilities in crypto exchanges, meaning hackers can find ways to crack their infrastructure and steal data.
Therefore, to avoid falling victim, crypto holders need to take measures to fortify their wallets. For example, they could put their trust in OKX.com, which is one of the largest centralized exchanges (CEX) and has a highly secure digital wallet.
Unlike some other providers, OKX stores its user’s crypto assets in cold wallets, which aren’t connected to the internet.
Blockchains by nature are the most secure data storage systems on the planet.
Hackers find it practically impossible to gain control of more than 51% and governments are unable to shut the system down.
When cryptocurrencies are stolen or spent fraudulently, it’s usually due to trusting scam wallets. The best way to keep crypto assets secure is through research and education.
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