Secure Platform Architecture — what is it and how it works?
The Platform Security Architecture (PSA) is a holistic set of threat models, security analyses, hardware and firmware architecture specifications, and an open source firmware reference implementation.
LendaBit.com ensures high security in all its operations, always seeking to manage, anticipate and prevent potential threats. The platform is compliant with the recognized industry standards and augments its hardware, software as well as network protection on a regular basis.
Cornerstones of LendaBit.com Security
Cornerstone #1: OWASP Compliance
The company takes into account the most notable practices and recommendations from the prominent experts in the field of software protection and application security.
Essentially, LendaBit.com is OWASP compliant, meaning it utilizes the best techniques, tools, and applications to determine the project dependencies and constraints, facilitate the testing process and diagnose security risks at the development stage.
Cornerstone #2: Blockchain Technology
Traditional lending institutions face issues such as processing errors, poor information access and susceptibility to fraud. LendaBit.com is a blockchain-based P2P platform, meaning that all the transactions between investors and borrowers are accurate, transparent and secure.
Firstly, the responsibility to validate transactions relies upon mathematical calculations rather than bureaucratic procedures. Built on a distributed ledger, lending and borrowing processes on blockchain are decentralized, thus there is no need for any intermediaries for all the transactions of assets. The greatest advantage of decentralized lending is that a borrower can access the marketplace of financial products and services provided by the LendaBit.com without any geographical barriers.
Secondly, every node in the network has a copy of blockchain that they use to verify new transactions.
Parties can look up their transactional history on blockchain.com and omniexplorer.info at any time, which reinforces their mutual accountability and removes the possibility of disputes.
Thirdly, the blockchain is an inherently immutable ledger, which guarantees that the financial data are correct and tamper-proof. While traditional financial institutions are prone to fraud and human error, blockchain-backed platforms offer a new model where parties do not need a trusted intermediary to feel safe.
Cornerstone #3: Complex Verification
LendaBit.com is very prudent when it comes to user verification. The investors and the borrowers must submit valid documents proving their identity and address before they can start using the platform services.
However, this is not the only security measure promoted by the company. Users can also enable 2-step verification in the website settings. It requires the user to enter a code, sent to their device, every time they log in. Therefore, even if the scammer gets hold of the user’s password, they won’t be able to log into their account. To set up 2-step verification, the user needs to link their LendaBit.com account to their device via the Google Authenticator app.
Cornerstone #4: Distributed Access Management
LendaBit.com has recently integrated distributed access control system (DACS). DACS is an open-source software solution created to make the web-based authentication and authorization more secure.
DACS is not reliant on a central computer, thus it is harder to impede its functionality. Both users and system administrators can benefit greatly from its unified, scalable and context-sensitive frameworks, which connect smoothly to the existing infrastructure and enhance its security. Because the access control is distributed among various nodes, the risks of wallet hacks or thefts are significantly reduced.
Cornerstone #5: System Monitoring
The platform implements multiple levels of protection, such as firewall, antivirus, and anti-ransomware tools, to make the attacks, especially the successive ones, highly unlikely. In addition, the protection system constantly monitors the input data streams for potential risks, proactively blocking the threats and always alerting the users in case an intrusion or any other malicious activity has been detected.
LendaBit.com employs cloud-based service as well as advanced cybersecurity analytics tools to detect and remove any malicious codes, files, email addresses or websites.
Cornerstone #6: DDoS-Attack Deflection
Nowadays many websites are prone to malicious DDoS attacks posing a threat to client personal and financial data. LendaBit.com is aware of the issue and takes contemporary preventive measures to make its services resilient against cyber attacks. Clients can be confident that their information is secured by advanced protection systems.
By implementing an integrated security architecture, our platform not only protects client data, but also mitigates the risks of network overload and ensures excellent website performance.
Cornerstone #7: Multi-Signature Wallets
LendaBit.com provides an option of multi-signature wallets for its clients. In fact, multi-sig wallets are ultra-safe with two-factor authentication (2FA) and best for corporate clients. It is the most secure way to transfer your funds involving two parties, hence excluding the possibility of theft. LendaBit.com highly values customer privacy and strives to offer the most advanced products.
Deployment of multi-sig technology designates that crypto wallets are located on secure servers with no access to internet connection, thus eliminating any chance of unauthorized or illegal actions.
Cornerstone #8: Transaction Verification
All the transactions made by our clients are duly verified and analyzed using Crystal blockchain investigative solution (https://crystalblockchain.com/). The tool tracks the origin of crypto assets and establishes the risk score of financial operations. Crystal data management system employs strong cryptocurrency analytics to trace, investigate, and eliminate suspicious transactions.
Thus, our platform can systematically monitor the ownership and origin of digital assets and ensure the safety of all transactions.
Cornerstone #9: Collateral Management
Our platform adheres to the principles of secure lending. Therefore, borrowers are required to provide cryptocurrency collateral before they can strike a loan deal with LendaBit.com. The mechanism of collateral provision will be algorithmic-based and transparent. The collateral amount will be stored at an individual client’s address and can be checked on blockchain at any time. Depositing of crypto collateral will be executed to a wallet address provided by the platform for your account.
The borrower can be certain that their collateral is safely stored and it will be returned to them once the terms and conditions are fulfilled.
Cornerstone #10: Smart Contract Source Code
In essence, a smart contract is a digital equivalent of a legal contract but with the implementation of blockchain technology and ERC20-based tokens as collateral. Upon its deployment, the smart contract becomes public, tamper-proof, and invariable. LendaBit.com is planning to implement smart contract source code verification. The main advantages of smart contracts encompass cost-effectiveness, high level of security and impossibility of falsification.
Conclusively, the whole business process is transparent and anyone can monitor the functionality of the smart contract.
Cornerstone #11: Additional Confirmation To Withdraw Funds
A conventional login/password pair may not be sufficient to protect you funds. In light of this,
LendaBit.com recommends you to enable additional confirmation via email, SMS or two-factor authentication. Upon code verification via email or SMS, you’re adding an extra layer of security to your existing account. You only need to insert the verification code into the available field and press Verify.
Once the verification procedure is complete, you will receive a corresponding notification, after which you can easily withdraw your funds.
Cornerstone #12: AML/KYC Verification
In accordance with AML/KYC policies, all our clients are required to submit relevant documents during the registration. Particularly, it is mandatory to provide a copy of government issued identification (national ID, international passport or driving license), a document which confirms the client’s residence and contains full name, address and is issued no more than 3 months ago (utility bill, certified tenancy agreement or bank statement), and a photo of yourself holding one of the aforementioned government issued identification. Once your verification is complete, you will get a full access to our P2P platform’s services.
All these steps are necessary to prevent any suspicious activity or illegal actions (money laundering, terrorist financing, etc.). By implementing AML/KYC regulations, LendaBit.com ensures that its functionality is protected from any potential frauds.
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