Cryptocurrencies offer a world of opportunities. Fast and easy payments, innovative financial services, and inclusivity to previously unbanked areas of the world are all made possible by the crypto ecosystem.
But with these opportunities come challenges and risks. Many crypto platforms lack strong operational, governance, and risk practices. The problem arose with great consequences in 2022 with the collapse of Terra Luna – one of the largest stablecoins – and FTX – the second largest exchange that filed for bankruptcy.
Beyond this collapse, there have also been several high-profile cases of theft of customer funds related to hacking on centralized and DeFi platforms. The issue has fueled the debate over the importance of private keys.
We recently caught up with Georgios Kalmpazidis, co-founder and CEO of Swaps.app, who shared his thoughts on the topic.
Q — What do you think about the current security issues plaguing the blockchain industry?
Speaking of blockchain, it is probably the most transparent, secure and democratic technology and system ever created by mankind. It has grown in popularity over the years, and now, in addition to crypto, it is widely used in other fields, such as healthcare, property, smart contracts, etc.
Blockchain is a relatively new technology that currently meets several security challenges, but I would like to look at these challenges from two perspectives – the blockchain and the user. From a blocking perspective, the most vulnerabilities are related to sybil, 51% and routing attacks, which are common problems, successfully managed by cyber security professionals.
Regarding the user side, the main challenges are phishing attacks and private key security, which are some of the most important issues. If you look deeper, the problem here is similar to traditional financing, and consistently guiding and educating users is the key to protecting funds and fighting fraudsters. This should be one of the top priorities for the company.
Above all these factors, there is another major problem, which is the biggest roadblock for industrial organic development. I call it an irresponsible and immature business strategy, which misleads and mistreats users causing huge losses. Unfortunately, we have few similar cases in the industry that we can recall.
Q — Do you think the collapse of major crypto platforms threatens crypto adoption?
The decline in market capitalization and what is happening to some of the major crypto platforms during 2022 has led to uncertainty about the level of crypto adoption. Past events have undermined confidence in the industry and affected the market, increasing the need for private keys to be independent and secure.
At Swaps.app we are optimistic that the industry will survive after everything collapses. Of course, the pace will be different, but through more comprehensive regulation, the industry will become healthier, more reliable and more consistent.
Q — How important is it for users to hold their private keys?
As I mentioned before, the security of private keys remains one of the main concerns, especially in the current market conditions. This is the primary key to the user’s funds and must be owned and stored. Of course, it also depends on the user’s needs and trading behavior. Many crypto platforms offer custodial wallet services that offer a high level of security and wallet protection and are convenient for people who actively trade crypto. In this case, users have to be selective when choosing between public custodian wallets. However, we recommend that all funds be kept in a private key.
Q– How can crypto users protect their private keys from being guessed or hacked?
When it comes to protecting your personal key, I always compare it to the situation of locking the front door after leaving the house. We never leave it open or leave the lock in the lock. It is similar to a private key. If it is weak or unprotected, your funds are at risk.
The first, perhaps trivial, step for users to protect their private keys is to protect their private credentials from others. I call it trivial because it sounds basic, but in some cases, users mistakenly share it with hackers during phishing attacks.
In addition, it is important to use active two-factor authentication, avoid simple password combinations, do not store passwords in the browser, clear cookies and browser cache regularly, and store credentials in a secure manner if they do not exist. one, even close friends or family members, have access, use malicious link detection software or apps, increase device security with antivirus software, keep device systems and browsers up to date, avoid connecting to open or public WiFi networks.
We constantly remind users of this simple rule and encourage them to keep their personal information and credentials safe when buying crypto on Swaps.app.
Q– What security features should crypto platforms incorporate to prevent hacks and high fraud
Security is the cornerstone of the crypto industry, and when platforms compete on price, rates, speed and other important parameters, security wins the competition. After came another.
Cryptocurrency systems require the creation of secure cryptographic keys and seeds. Companies should examine their organization’s security measures in this area, being careful about confidentiality and unknowable numbers.
Maintaining the integrity of cryptocurrency wallets/key usage is also critical. Risks such as lost or stolen keys or accidentally revealing the wallet owner’s identity can be avoided with best practices such as stronger key storage and assessment.
Q– What do you think will be the biggest trend in blockchain over the next 12 months?
There are many blockchain trends to watch out for in 2023, but the biggest one for me is the widespread use of CBDCs, as more governments will introduce digital assets. At Swaps.app, we look forward to supporting CBDC for our users and business partners whenever possible. Rising investment in stablecoins and more interest in DeFi will be a blockchain trend, too, over the next 12 months.
Q– What is the most difficult challenge you have faced in our industry so far?
The issue of speed and trust in this industry is the most difficult challenge. I am proud to note that due to consistent improvements and updates Swaps.app successfully provides high-quality and smooth crypto purchases for customers and fast and secure crypto and fiat payment processing for online businesses.
Also, we are very careful and selective in choosing our liquidity, fraud prevention and payment partners, making us a safe crypto platform. During the last 12 months, we have completed integration with industry companies, including TrueLayer, Stripe, Sumsup, and Binance, updated our services, and introduced new coins and features, making a big leap into the next chapter of the company. history.
Swaps.app is a compliant and effectively regulated European crypto company that combines industry-leading security with a very fast and easy-to-use platform to bring crypto buying and selling to everyone, beginner or expert, company or individual.
Image: Swaps.app blog