06.08.2020
Is blockchain secure

Is blockchain secure? If not, how to make it secure?

If you’re looking for blockchain technology to make your funds more secure than they are now in a bank, you’re in the right place. Congratulations! 

Very few people know this, but keeping money in a bank is pretty much criminal negligence. According to 2019 Official Annual Cybercrime Report from Herjavec Group, to say the figures of cybercrime are alarming is putting it mildly:

“In August of 2016, Cybersecurity Ventures predicted that cybercrime will cost the world $6 trillion annually by 2021, up from $3 trillion in 2015. Frank W. Abagnale, an FBI consultant for over 40 years and one of the world’s most respected authorities on forgery, embezzlement, and secure documents, concurs with the $6 trillion cybercrime damage cost prediction. The cybercrime epidemic has hit the U.S. so hard that a supervisory special agent with the Federal Bureau of Investigation who investigates cyber intrusions told The Wall Street Journal that every American citizen should expect that all of their data (personally identifiable information) has been stolen and is now on the dark web”.

Is it bad?

It’s bad. And we’re not talking Michael Jackson “bad” either, which is pretty awesome. Bad as in “wake up in the morning and find out you have no way to pay rent tomorrow” kind of bad. 

The estimated figures here (which are, by the way, conservative estimates) mean the total cybercrime costs are greater than the world’s combined drug crime expenditures.

Want to hear something genuinely scary? These are just the recorded crimes. 

Crime statistics work like this: only one in 4 crimes are reported, only 1 in those 4 are recorded by the police, and only one in 4 out of those are successfully resolved. That means that 63 out of 64 crimes are unresolved. Now, if you want to get real, take the number we gave you and multiply them by 63 to get the actual numbers. 

viruses

According to world-renowned security engineer Andreas Antonopoulos, “If you have a Windows PC, the question is not “do I have viruses”? The question is – how many have I got?”. By the way, antiviruses, if you ask PC mechanics, are useless – by the time they catch viruses, extract the code and update your virus database, the existing one already managed to do the damage, and where one is caught… that’s right. 63 haven’t been. 

So you should probably think about securing your funds. Where to go? This city needs a hero. Well, with endless bank hacks and heists there is one who has NEVER been hacked in 10 years. You who we’re talking about. 

Blockchain Bitcoin

What makes blockchain secure?

Quick side note: before anything else, let’s clear up any remaining misunderstandings about Bitcoin and blockchain. Blockchain is the tech that Bitcoin, Ethereum, and many other coins work on. If you’re using Bitcoin, you’re using the part of it that is blockchain. You may not like Bitcoin, but we’re using it for the sake of simplicity, accessibility, and safety. If you’re not a fan, you can constitute ETH or other coins below where BTC is mentioned. 

And we’re back. 

So what alternatives are there to handing over the money to the global banking cartel?

Banking and keeping money under a mattress are seemingly different concepts that have one thing in common. They both don’t work because they have one point of failure. All it takes is someone getting into a vault or your bed – and they can clean out your savings. Because all the money is concentrated in one spot. 

Now, blockchain makes things secure by creating a whole new system. There is no single point of failure. The funds are stored on PCs of millions of people around the world. To hack the bank, you just need to hack 1 person. To hack blockchain, you need to hack millions. 

Blockchain secure data: how to stay safe 

Now, transferring your money to blockchain makes it substantially more secure. Smart contracts, distributed ledgers, consensus protocols…It even sounds more intelligent than the same old banks you’re used to. In fact, crypto is pretty genius.

Remember! There are ways to get your money out of blockchain wallets too. There is a huge incentive for hacks to steal your Bitcoin (or crypto of choice). But your funds are infinitely more secure in crypto. Read on to find out how someone can use blockchain to get your money out and how you can put a definitive stop to it. 

Using blockchain to secure data

So now you know banks aren’t secure. Moreover, they go boom periodically. Also, if you ask a Greek or an Argentinian, sometimes after a crisis they just decide not to give you your money. But your problems are none of their business.

$5-dollar wrench solution

Storing cash in your house is not a bad idea, under the floorboards and so on. The problem is that if someone applies pressure to you they can still get a confession out of you about where the money is. A blowtorch works well, but even rather banal pliers or a $5-dollar wrench will do the trick, so much so that the term “a $5-dollar wrench solution” has been coined in the crypto world to denote solving a “$100 000 000 security system” problem by using a $5 wrench to hit the bank manager with until they give up the money.

In the case of Satoshi Nakamoto’s distributed systems, which use cryptographic keys and unknown digital identities, it’s extremely difficult to pull this off: you’d have to hit 140 000 people with a wrench, which will likely take some time. But there are easier ways that include wallets and viruses.

Is a blockchain wallet transaction secure?

The quick answer is: usually no. 

The relatively quick answer is: you can make it very secure, but millions of people don’t.

The long answer is: someone can get into a wallet on your PC or phone by planting a virus on your machine while you’re surfing the Internet. The virus either logs all your typed keys, and among them are your password and private keys (private keys allow access to your funds), etc – or screenshots your screen when you log in. The data is then sent off to a hacker. Because they now have control of your keys, they can transfer your BTC out of your account. 

What to do?

Get very, very paranoid about protecting your assets (pun not intended). Here are the steps you can take to make your money more secure (in order of rising security). 

Level: Already dead but doesn’t know it 

Level Already dead
  1. Get 2-factor identification for your exchange account.
    It’s not much but the hacker will need to also have your phone.
  2. Get email confirmation for every time you withdraw funds.
    You will also have to approve the transaction on another device. 
  3. Get a separate authentication app.
    This nifty little gadget will require you to enter a separate PIN on a separate device in addition to the previous two factors.

Level: Noob

Level Noob
  1. Get a hardware wallet.
    This is a MUST. A hardware wallet is a physical device that you connect to your PC and it’s almost impossible to break into. A Ledger Nano will display the private data on the hardware wallet screen. This means that even if your phone or PC is infected with screen capture software, the con artist won’t get the data. 
  2. Check the website address. 85% of attacks on companies use phishing.
    Make sure you’re on the actual site you’re looking for! 

Level: Experienced

Level Experienced

Listen to these and these.

Sounds like a lot to take in but trust us – if you want to keep your money safe, you need those. 

Level Hardcore

Level: Hardcore 

Get a paper wallet, laminate it, and lock it in a safe.

Safes are surprisingly cheap and quite effective. Try to get a heavy one that will not be easily stolen out of your car. Keep your data locked up. There’s a reason for the word “safe” in the phrase “keep your money safe”. You can’t beat a classic. NB! Your safes are safe if no-one knows you have them.

Level: God 

Use Linux, TOR and Mimblewimble. 

Level: Andreas Antonopoulos 

Andreas Antonopoulos
  1. Stop listening to nonsense and learn how to find genuine experts.
    The consequences of listening to fake gurus will be a memory to carry with you for decades.
  2. Get a Ledger Nano.
    Hack the hacker by using next-gen tech.
  3. Study up!
    The best investment is education. Using advanced coding will pretty much guarantee you’re invisible to everyone – including hackers. Don’t stop there! There are 88 000 courses on Coursera alone on literally everything. You can find even more fun and slick education here.

So, to sum up: 

Why is blockchain so secure? 

Blockchain has no one single point of failure, and it also has 10+ security precautions you should take in parallel, as opposed to primitive and boring safety precautions implemented by banks and NSA, who can’t keep their data secure anyway. 

With blockchain, secure communications become actually secure. How? There are 3 elements to that game. A clothes hanger. A short-frequency radio. A laptop with a USB port. The rest is classified (spy stuff, y’know).

Nominex understands security is everything. That’s why it has been licensed in Estonia, where regulations are so strict that it’s impossible to fulfill the requirements unless you’re a real cybersecurity pro. If NATO decided to put its Cybersecurity Centre Of Excellence there, there’s a good reason for it.

Besides stellar security, Nominex offers a staggering row of other reasons to join which you can read about here

Among everything else, we have designed an educational system that will keep your money safe by providing you with crucial knowledge on how to maintain blockchain secure data sharing.

Happy trails!

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