Why Crypto Exchanges, Digital Wallets, and NFTs Need to Increase their Security Measures
The digital revolution started a long time ago. And since then, people have been utilizing the available digital tools. With the continuous progress in the technological industry, many advancements have been made. And among those is cryptocurrency.
Cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network that does not rely on central authorities to maintain. This invention was introduced in 2008, but it only recently became a global phenomenon. Investors have placed their money in cryptocurrency for its potential value. Furthermore, the crypto market is expected to continue to grow further.
With the increasing demand for crypto, the market for digital wallets is also expanding. Due to this, investors and traders need mobile applications with solid security and payment authentication for their withdrawals and monitoring of online transactions.
Passwords, for the longest time, have been the most commonly used verification method. However, this outdated authentication protocol is unreliable when ensuring a secure and robust validation process, especially for high-tech developments, such as cryptocurrency. It is proven that many of the cybercrime attacks were rooted in passwords. Moreover, keeping track of different passwords and username combinations can be confusing.
In an attempt to make passwords more secure, multi-factor authentication (MFA) was developed. Through this technology, users can utilize their SIM cards or email addresses to strengthen the security of their accounts. However, this effort was not enough as fraudsters were able to crack down on the vulnerabilities of MFA and later on used SIM swapping and email hacks to access accounts illegally.
Fortunately, passwordless authentication UX was developed. With the help of FIDO technology, the MFA was strengthened. In passwordless authentication, the verification method uses biometrics (fingerprint and face recognition) with cryptographic keys to grant access to a user. This creates a more suitable security method for crypto exchanges, digital wallets, and NFTs.
These newly developed technologies are gold mines for criminals if they are granted access. Thus, crypto exchanges, digital wallets, and NFTs must be extra careful and increase their security methods. Establishing a more robust security system for these new technologies is necessary to protect companies and their users from possible cyber attacks.
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