Digital currency decentralization hot wallet hacker attacks

1.

We need to call the police. This belongs to currency fraud. We can't blindly trust the virtual investment platform that can easily earn a lot of money. Fraud gangs often use "small investment, big income" as t to let investors taste the sweetness first and then increase investment, so as to achieve the purpose of fraud

at present, the so-called "digital currency" in the market is not legal digital currency. The so-called "digital currency" launched by some institutions and enterprises and the so-called promotion of the central bank's issuance of digital currency may involve pyramid selling and fraud. It is necessary for the general public to raise their risk awareness, invest rationally and prudently, and prevent the interests from being damaged

extended information:

five ways to distinguish whether digital currency is MLM currency. virtual currency does not rely on specific monetary institutions to issue, it is based on a specific algorithm, generated through a large number of calculations, is a decentralized way of issuing. Each different terminal node is responsible for maintaining the same account book, and the maintenance process is mainly to package and encrypt the transaction information by the algorithm, while the MLM currency is mainly issued by a certain organization, and the profit is made by pulling the head

2. Transaction mode. Virtual currency is a kind of sporadic transaction formed spontaneously in the market. After the scale is formed, the third party graally establishes an exchange to complete the transaction. The MLM currency is issued by an institution and traded on its own platform

3. The virtual currency itself is an open source program, maintained in the GitHub community. The parameters and methods of the total amount limit are shown in the open source code. The open source of MLM currency is completely ing other people's open source code, and there is no use of open source code to build programs, so its essence is controlled by the website like Q currency

Whether the source code link is given. The general decentralized digital currency will give the source code link in the prominent position of the official website, so as to show the operation mechanism of the monetary system openly and transparently. What MLM currency focuses on is the transaction process of recharge purchase, not to mention its operation mechanism, and even the website does not have the link address of the source code

5. Whether the official website starts with HTTPS. In general, the addresses of the official website and trading website of decentralized digital currency begin with HTTPS. The purpose of this kind of website is to protect users' data from illegal theft. But the official website of MLM currency, trading website and other related websites do not start with HTTPS

2. Centralized wallet, also known as off Chain Wallet, completely depends on the company and server running the wallet. bitcoin stored in the exchange is stored in the centralized wallet (off Chain Wallet). The private key is not owned by the user, but in the wallet project side of the centralized server hosting chain, the fund is usually entrusted to the server
private keys and assets are transferred to the wallet for centralized management. Users don't need to worry about the loss of the private key of this kind of wallet procts, resulting in the loss of funds; However, the capital risk will be more concentrated in the wallet project side and server side. When the centralized wallet is conquered by hackers, users will suffer unnecessary losses
decentralized wallets, commonly known as onchain wallets, have private keys maintained by users and assets stored in blockchains
decentralized wallets are often referred to as onchain wallets. The private key is handed over to the user. If the private key is lost, the wallet will not be able to help the user recover, and the funds will be lost forever. But the decentralized wallet is difficult to be attacked by hackers, and users don't have to worry about the self stealing of the wallet service provider
centralized wallets are where assets are stored, while decentralized wallets are where private keys are stored
except for the exchange, it is not recommended to use the centralized wallet, although losing the private key may help you find it. But there is always a risk that the company will run
a decentralized wallet is equivalent to a channel, a channel where you can master mnemonics to control your assets on the blockchain. For a decentralized wallet, the most important thing is to protect the security of the [private key]
the application fields of blockchain include digital currency, token, finance, anti-counterfeiting traceability, privacy protection, supply chain, entertainment, etc. with the popularity of blockchain and bitcoin, many related top domain names have been registered, which has a great impact on the domain name instry.

3. Centralized wallet, also known as off Chain Wallet, completely depends on the company and server running the wallet. Bitcoin stored in the exchange is stored in the centralized wallet (off Chain Wallet). The private key is not owned by the user, but in the wallet project side of the centralized server hosting chain, the fund is usually entrusted to the server
private keys and assets are transferred to the wallet for centralized management. Users don't need to worry about the loss of the private key of this kind of wallet procts, resulting in the loss of funds; However, the capital risk will be more concentrated in the wallet project side and server side. When the centralized wallet is conquered by hackers, users will suffer unnecessary losses
decentralized wallets, commonly known as onchain wallets, have private keys maintained by users and assets stored in blockchains
decentralized wallets are often referred to as onchain wallets. The private key is handed over to the user. If the private key is lost, the wallet will not be able to help the user recover, and the funds will be lost forever. But the decentralized wallet is difficult to be attacked by hackers, and users don't have to worry about the self stealing of the wallet service provider
centralized wallets are where assets are stored, while decentralized wallets are where private keys are stored
except for the exchange, it is not recommended to use the centralized wallet, although losing the private key may help you find it. But there is always a risk that the company will run

a decentralized wallet is equivalent to a channel, a channel to control its own assets on the blockchain by mastering mnemonics. For a decentralized wallet, the most important thing is to protect the security of the [private key]

the application fields of blockchain include digital currency, token, finance, anti-counterfeiting traceability, privacy protection, supply chain, entertainment, etc. with the popularity of blockchain and bitcoin, many related top domain names have been registered, which has a great impact on the domain name instry.

4. The following is for reference only:
very large
in the field of blockchain and virtual currency, such cases of losses caused by the security of exchanges occur frequently, causing great economic losses to users. The security experts of Juhui ggfx also gave a hint: there are still many loopholes in the current digital currency trading platform, for example, the most common are the following six kinds:
the first kind: denial of service attack
denial of service attack is the most important attack against the digital currency trading platform at present. Through denial of service attack, the attacker makes the trading platform unable to access normally, Because users can not accurately distinguish the degree of attack, it often causes panic asset transfer, which brings some loss
the second kind: phishing
even the best technical measures at present can not make the digital currency trading platform avoid phishing attacks. Some hackers and outlaws can confuse digital currency investors by means of fake domain names or fake pages, while ordinary investors can't identify the authenticity, so it's easy to cause asset losses
the third: Hot wallet protection
many digital currency trading platforms use a single private key to protect the hot wallet. If hackers can access a single private key, they can crack the hot wallet related to the private key. For example, in the attack on yapizon of Seoul stock exchange in 2017, the attackers stole hot wallets from the trading platform twice in a year, resulting in a total loss of nearly 50% of the assets of the trading platform and eventually leading to the bankruptcy of the trading platform
Fourth: internal attack
e to the lack of perfect risk isolation measures or ineffective supervision on the authority of employees, the digital currency trading platform also has employees' self-monitoring and stealing, and some employees with operating authority of the platform use internal trust to seek ill gotten gains for themselves. For example, in 2016, the event of employees stealing bitcoin on shapeshift caused a total loss of US $230000 to the trading platform by stealing and reselling sensitive information to others
the fifth: software vulnerability
the software vulnerability of digital currency trading platform includes single sign on vulnerability, OAuth protocol vulnerability, etc. At present, all countries have laws requiring banks or other financial institutions to implement information security measures to protect customers' deposits. However, e to the fact that the blockchain field is still in its infancy, there is a lack of such specifications for encrypting digital assets. Therefore, it is not accidental that many trading platforms have a large number of loopholes in the absence of security constraints
sixth: transaction malleability
Technical supporters of blockchain often think that blockchain transactions are highly secure because they are recorded on records that are said to be unchangeable, but each transaction needs to have a corresponding signature, and the records can be temporarily forged before the final confirmation of the transaction. Mt. GOx, which once accounted for 80% of the world's total transactions, was hacked to submit code changes to the public ledger before the initial transaction was released, resulting in a loss of 473 million US dollars< br /> &# 160;

5.

Invisible bitcoin can not only make people rich or poor overnight, but also bring people worry about their lives

According to Ukrainian media reports quoted by the daily telegraph, on Tuesday (December 26), Pavel Lerner, CEO of the British bitcoin exchange exmo, was kidnapped after leaving his office in Kiev, Ukraine, and dragged into a black galloping car by a group of masked people

after the above news came out, a spokesperson of exmo told the daily telegraph that we are doing our best to speed up the search for Lerner and welcome all clues from the outside world. Exmo's business is running as usual and all users' funds are absolutely safe. According to the company's official website, the platform has more than 900000 users

after the kidnapping incident attracted public attention, exmo also announced on official twitter on Thursday that it had been attacked by DDoS (distributed denial of service) with the intention of destroying platform transactions

according to Wall Street reports, at the beginning of this month, when bitcoin rose to more than US $13000, the payment system of nice hash, the world's largest digital currency mining platform, was hacked and bitcoin in users' wallets was stolen. Bitcoin millionaire, a bitcoin information website, has since estimated that as many as 4736 bitcoins were stolen by hackers, with a total value of more than $62 million

interestingly, as a foreign netizen imagined, after the kidnappers received the ransom, if bitcoin continued to appreciate, it would be OK. If bitcoin collapsed before the gloves turned, wouldn't it be a "huge loss"

In fact, this is also the old question in the minds of many investors - how long can bitcoin's investment boom last

On December 2, when talking about bitcoin in public activities, pan Gongsheng, vice governor of the people's Bank of China, said that it was a decisive and correct decision for regulators to shut down bitcoin trading platform and stop ICO a few months ago

According to BBC news, on December 14, Andrew Bailey, CEO of the financial conct authority (FCA), the UK's top regulator, issued a warning to investors, saying that bitcoin buyers should be ready for "full compensation". Bitcoin lacks the endorsement and support of the government and the central bank, and its risk level is the same as gambling, he said

on Thursday (December 28), the South Korean government announced the countermeasures to combat virtual currency speculation, and considered closing some virtual currency transactions, so as to curb excessive speculation. In addition, the South Korean government has decided to implement the real name system of virtual currency trading and expand the investigation authority of the Fair Trade Commission, the anti-monopoly law enforcement agency

In a statement, the South Korean government said that cryptocurrency speculation in South Korea has gone too far and has become irrational, according to the report. The government can no longer allow abnormal speculation to develop

the Indian authorities also issued a warning. On Friday, India's finance ministry warned investors about the risks of cryptocurrencies such as bitcoin, saying digital currency investments look like a Ponzi scheme, Reuters reported. In a statement, India's Ministry of Finance said investors and other participants in digital currency transactions were "entirely at their own risk" and advised that it was best to avoid such investments

but from the perspective of optimists, bitcoin is not as static as gold. As a virtual currency, its software code is constantly developing, and its functions can be constantly adjusted, improved and updated, and its value can be realized in unimaginable ways, such as, Many bitcoin fans are looking forward to bitcoin's "lightning network" (an improved way to facilitate payment). If bitcoin gets more attractive functions in the process of continuous evolution, people can even use it for convenient and fast cross-border payment

according to China Securities Journal, based on the sustainability of bitcoin development, bitcoin supporters believe that even if the market value of cryptocurrency expands to 20 times the current value, the market will not go crazy. However, as far as bitcoin itself is concerned, with more and more new technologies coming out, bitcoin's share in the cryptocurrency market will show a downward trend in the future

Hong shuning, a senior researcher of Suning Institute of financial research, recently wrote an article, imagining two situations of "truly killing bitcoin":

first, all bitcoin development teams are conservative and complacent, no longer absorbing the latest scientific and technological achievements to improve themselves, resulting in the emergence of a new digital currency with all aspects of technical indicators exceeding bitcoin, It is widely accepted by the society and then replaces bitcoin. This is the failure of bitcoin, but also the success of virtual digital currency

Second, there are serious loopholes in the bitcoin protocol or wallet software, which lead to the security of the whole bitcoin system can not be guaranteed, a large area of funds are stolen, sold at a low price and uncontrollable in the short term, and the social confidence in bitcoin is completely lost

so. In this world, money is easy to use

6.

at present, the vast majority of digital currency transactions are concted in exchanges. Among the numerous exchanges, bitfinex, binance, okex and so on are well-known

However, bitcoin and other digital currencies, as decentralized assets, have to be traded in a centralized exchange, which seems to have hidden contradictions and dangers

1. Problems and challenges of stock exchanges=“ //www.yuanxue365.com/en/img_fd039245d688d43fdf16c83b761ed21b0ff43bbf ">

in February 2014, Mt. GOx, the world's largest bitcoin exchange at that time, was stolen 850000 bitcoins, and the price of bitcoin suffered a" cliff "crash on that day. Later, it was revealed that Mt. GOx was in fact a thief, and only 7000 bitcoins were actually stolen

in August 2016, bitfinex, the largest U.S. dollar bitcoin trading platform, suffered a security vulnerability, resulting in the theft of 120000 bitcoins, which was worth $65 million at that time. If converted into the price in December 2017, it would be worth nearly $2 billion

on December 19, 2017, South Korea's youbit exchange was attacked by hackers and lost 4000 bitcoins, and the exchange declared bankruptcy

on December 21, 2017, the Ukrainian liqui exchange was stolen 60000 bitcoins, and the unit price of bitcoin plummeted by US $2000

in 2018, such a drama will only continue

in addition to the threat of hackers, traditional exchanges also have some inherent shortcomings, such as lack of supervision and inefficiency. The security of the exchange for investors can only rely on its own credit, and the cost of running is very low. The stock exchange is regulated at the national level, but there is no such sword of Damocles on the top of the digital currency exchange. Moreover, in an exchange, the same order can only be submitted to one exchange. After the user places an order, the funds used for the transaction will be frozen and can only wait for the completion or cancellation of the transaction. These are undoubtedly inefficient

All in all, the problems of exchanges are the problems of centralization

2. Decentralization of exchanges=“ //www.yuanxue365.com/en/img_86d6277f9e2f070889a173c9e224b899a801f257 ">

(1) the progress of the exchange itself

the upgrade of security means is various. At present, the best use is cold wallet, that is, to keep the digital currency in the offline U disk. At the end of 2017, when the YouTube exchange was attacked, 75% of its assets were withdrawn into the cold purse in time to avoid greater losses. However, it seems to be a helpless way to protect the online assets by offline means. Of course, there should be many other methods, which will not be repeated here

(2) the representative of cross ledger transaction is ripple network, and the operating company is ripple labs, which is a semi centralized system. Ripple is a decentralized clearing agreement. In order to solve the high cost and delay of inter-bank clearing, its base currency is XRP. Ripple network can connect all kinds of assets, such as US dollar, RMB, Japanese yen, bitcoin, etc. to its own network. In this system, U.S. dollars or bitcoin can be converted into reborn currency, and then reborn currency can circulate freely in the network, just as a highway is built between various assets. Due to the support of major banking institutions, the reborn currency achieved nearly 300 times growth in 2017

(3) decentralized exchange

some teams try to use blockchain technology to build a decentralized exchange. This kind of decentralized exchange, to some extent, is an extension of cross ledger trading

bitshares is the most representative of early rising projects. It builds a blockchain development platform with servers scattered all over the world. Even if some of them are attacked, the system will not collapse. Anyone can transfer money and borrow money freely on this platform, and can also quickly build a centralized exchange based on this platform. In order to ensure stable value, bitstocks also require three times of digital assets as collateral. At present, bitstocks are running fairly well

later, with the development of Ethereum and smart contract, the x x protocol came into being. This is an open protocol running in the Ethereum blockchain and a decentralized exchange in the Ethereum ecosystem. The agreement has attracted many investors. At present, it has completed financing and started to build open source software tools and infrastructure. Of course, there are many competitors. Ether Delta, IDEX and oasis DEX are trying to provide similar functions. Moreover, it is a smart contract system based on Ethereum, which only supports erc20 token. If other smart contract public chains start to rise, the demand will be reced

in addition, there are some teams that are entering, such as the domestic road seal agreement, looping (LRC) in English. They adopted a design similar to the X protocol, and also introced a fast payment function similar to the lightning network. It is characterized by trying to match multiple exchanges, the user's order can be broadcast to multiple exchanges, and completed by different exchanges. Moreover, the user can still use the account funds after placing an order, and the user's behavior of transferring part or all of the funds is equivalent to partial or total cancellation. To some extent, it improves the breadth and timeliness of the transaction. However, this system seems to have damaged the "power" of the existing exchanges. Whether we can persuade everyone to play together will be a difficult problem

At present, there is still a long way to go for the construction of decentralized exchange. In 3-5 years, traditional exchange will still be the main battlefield of digital currency

However, in the future, it is worth looking forward to let the decentralized digital currency get rid of the shackles of centralization

7. It depends on the unit or the indivial. There are about 20 or 30 units in the unit and about 10 units in the indivial family. Of course, there are also games to watch.

8. The reason for the speculation of virtual currency is that it emphasizes that it has more "advantages" than traditional currencies, that is, US dollar, RMB, Japanese currency and euro. First of all, bitcoin is a kind of decentralized currency. There is no central bank to control the issuance. It is controlled by a precise computer system to achieve a stable issuance speed and a definite limited amount. It is claimed that anyone can participate in the proction. These "advantages" can be summed up as anti inflation, that is, the currency of the holder will not depreciate. If 10 bitcoin can buy a bicycle one year ago, then 10 bitcoin can still buy a bicycle one year later - sounds very attractive
although there are all kinds of new gimmicks behind bitcoin, they all adhere to the design features of bitcoin, such as decentralization, and take "anti inflation" as an important advantage. Virtual currency is not recommended

9. In fact, it's very simple. Using a kushenleng wallet to store digital currency can prevent hacker attacks. Its private key is completely not connected to the Internet, so its security is very high.

10. After investigation and confirmation by professional network security companies, gatecoin, a bitcoin platform, publicly declared that its system had been hacked and 15% of its digital asset deposits had been stolen

another platform closed down e to hacker intrusion. Is bitcoin still in spring< Bitcoin (BTC): originally proposed by Nakamoto, it belongs to a kind of digital currency. It is based on a specific algorithm and generated through a large number of calculations. Therefore, the issuance of bitcoin is not manipulated by any government, bank, organization or indivial. The total number of bitcoins is very limited. In the past four years, there were only less than 10.5 million, and in the future, the total number of bitcoins will always be limited to 21 million

Hot Wallet: it can be connected to the Internet, has strong circulation, can be used for daily consumption, and is vulnerable to hackers

cold Wallet: it won't connect to the Internet and has poor circulation, but it is not easy to be attacked by hackers

gatecain explained in an official article that the server intrusion occurred between May 9 and May 12. On the night of May 9, the service was interrupted e to the restart of a server. Associated with the time node, I strongly feel that the hacker intrusion event has an indispensable relationship with this service interruption

on the evening of May 13, gatecoin detected some suspicious transactions, so it immediately suspended the service for investigation to prevent more unauthorized access to Eth and BTC hot wallets<

loss

the hacking incident caused huge losses to gatecoin, with 185000 Ethernet coins and 250 bitcoins, with a total value of US $2 million, accounting for 15% of gatecoin's total digital assets

the security company investigated and found the hackers' Ethernet and bitcoin addresses, and gatecoin is raising funds to make up for the losses

Wright coin, Ruitai coin, doggy coin, Ethereum, bitstock and other digital currencies are also excellent.