Digital currencies: Buy, Sell and Trade effectively
Over the years, digital currencies have become an important part of our day-to-day life cycle. Researcher says that a day will come when Bitcoin will do all the transactions and other digital currencies, thereby, the paper currency and coins that we use today will become a thing of the past.
However, one of the major concerns is the success of digital currencies, which entirely depends upon the security features associated with digital exchanges, which are the target of hackers. In this article, we will be discussing why a secure digital exchange is important for the healthy future of digital currencies
What are the issues associated with digital exchanges?
Digital exchange is a marketplace where the buyers and the sellers of the digital currencies meet virtually and trade, without the need of any intermediary. However, there are some issues faced by the digital exchanges which are as discussed below:-
Data leaks
Privacy of User data is one of the essential aspects of the blockchain network. However, this data is always over the target of the hackers, who wishes to use this data in two forms. They can either send the data to the marketers who can use it to impose their product advertisement over the innocent users or hackers can use data to decode the sensitive information like passwords and thereby, get access to user’s complete account.
Trust issues
One of the most recited features of blockchain is the endless trust associated with it. But, these days scams are so popular that even the digital exchanges are not safe and are prone to be attacked. In such a situation, users generally lose trust over the digital exchanges. As a result, Digital currencies will lose their credibility and fanfare.
Anonymity
Blockchains are generally made up of data blocks which are accessible only to the real user. These participating members remain anonymous to each other; thereby, their identity cannot be predicted easily. But, due to data leaks, the hackers can violate the anonymity of the blockchain and thus, make the identity of the user public, which can make it a stressful situation for the user.
Dependency over business
Finance is an essential aspect of a business. Every business involves multiple transactions daily, thereby, it is very important to build trust among the business people by providing them with a safe and secure financial system. Hence, it is important to have a secure digital exchange which could allow transactions made in digital currencies secure.
What are the solutions to it?
Strong encryption
One of the best ways of preventing data leaks is by using secure sockets layer (SSL) or transport layer security (TLS) technique to keep the data safe and secure.
Safeguarding the user’s identity
By the use of better and more secured digital exchanges, we can keep the user’s identity anonymous and thereby, let all the users trade with full confidence.
Encryption technology
The reputation of digital currencies entirely depends upon how safe the digital exchanges are! Thereby, we need to use the best encryption technology to enable traders to rely on it completely.
What are people saying about the success of digital currencies?
“You might think of Bitcoin and blockchain as two halves of a whole, but in reality, they are very distinct commodities.”
― Olawale Daniel
“Bitcoin is the most stellar and most useful system of mutual trust ever devised.”
― Santosh Kalwar
“I describe Bitcoin as “a digital version of gold” eGold.”
― Arif Naseem
Summary
Based on the discussion so far, we can say that the success of digital currencies is totally in the hands of digital exchanges. Therefore, we need to have more secure digital exchanges which can build trust among the users.
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