Cryptocurrency can be best described as a type of digital currency. It uses cryptography for the purpose of offering data security and anti-counterfeiting measures. Generally, public and private keys are employed for transferring cryptocurrency between individuals. Some of the most popularly used cryptocurrencies are Bitcoin, Litecoin, Bitcoin Cash, Dogecoin, Etherium, etc.
The issue of security has been attached to cryptocurrencies, especially bitcoin since its development and inception. In case you are wondering if one can hack cryptocurrency, continue reading this article.
Bitcoin itself is actually very difficult to hack due to its highly supportive blockchain technology. Hacks are usually unlikely as blockchain is constantly reviewed by bitcoin users. However, it does not mean that it’s necessarily a safe investment. The potential for security risks does exist at various stages of the trading process. Although developers are always trying to improve wallet security, there are ‘black hat’ hackers who are always trying to access other peoples’ wallets illegally.
In Bitcoin’s transaction process, the most commonly used security measure is two-factor identification. Linking the security of a transaction to an email address or a cell phone number means that anyone with access to those components can authenticate transactions. If hackers manage to determine your non-cryptocurrency-related personal information, infiltrating your transactions will not be much of a difficult job for the hackers.
In August 2010, Bitcoin was hacked when some hackers exploited a vulnerability. The hackers generated billions of bitcoins which were sent to two addresses on the network. The vulnerability was eventually fixed. After that, the transaction was erased from the transaction log. The Bitcoin network was forked to an updated version.
A “bad” transaction infiltrated block 74638 on 15th August 2010 due to a bug in bitcoin’s code. There are several more instances as well when Bitcoin and other cryptocurrencies were hacked.
However, there are exchanges working towards maintaining high-security practices. Binance, is one of them, is doing a commendable job to safeguard the cryptocurrency market. In 2018, it impeded into Cryptopia hacker’s plans and had frozen the stolen cryptocurrency. Well, everything has its own positive and negative sides; so is the issue with cryptocurrencies as well. The operation of such digital currencies was made decentralized to make transactions easy, but hackers found their ways to invade into the network and ruin the concept. Though it’s not a child’s play to take preventive measures against such activities, platforms like Binance are putting their best efforts to avoid these unscrupulous happenings.