3 Problems Crypto Society Still Can’t Solve
By Evan Ducktator on ALTCOIN MAGAZINE
Crypto industry is growing fast and changes in the blink of an eye. Sometimes it’s hard to keep up with such changes. What’s more, new ideas and products bring new challenges, not to mention that the old issues haven’t been solved yet.
So what problems crypto industry need to solve to break new grounds?
Crypto Exchanges Hack Issue
After a series of hack attacks, one thing became clear — exchange security and safety leave something to be desired. On one hand, some claim that exchanges need institutional standards for security to make it more reliable for coins storage. On the other hand, an exchange hardly ever was a place to keep your coins safe. I don’t want to be a backseat driver, but the safest way to secure your coins is to keep them on a hardware wallet.
In a broad daylight cryptocurrency disappear from an exchange due to several reasons: a technical bug, inside fraud or an old fashioned hacker attack. In other words, the lack of transparency and security regulations make them an unreliable way to keep crypto.
However, there are ways to solve this situation. Firstly, an exchange can try to hack itself to safeguard against vulnerabilities. Secondly, the adoption of industry-wide security standards could also help. And last but not least, there should be more decentralized exchanges to provide alternatives and competition.
Privacy And Security Disbalance
Cryptocurrency is well known due to its anonymity and privacy. However, a series of financial frauds lead to KYC protocols (know your customer) integration.
KYC is an agreement tool aims to make the crypto industry less chaotic and more secure. However, the KYC procedure requires to provide personal information that contradicts the main blockchain ideas. Beyond all doubt, public blockchain information along with private data might be dangerous both to the users and companies.
What can the crypto industry do to stop revealing private info to the third party companies and governments? Privacy coins might be the right solution. It is harder to see what one spend these coins for. What is more, a user can work with the exchanges that don’t require KYC.
Market Manipulations
Whales and exchanges use Bitcoin and the other coins as a cash cow, turning it into an easy manipulating tool. Steep rises and deep downs of BTC price are the main signs of market manipulations. Believe it or not, but cleaning up the fake trading volumes could profit the crypto market.
The thing is that a stable and transparent market attracts big cheeses that can make a bundle to the whales, exchanges, blockchain corporations, traders, miners, and everyone who involved in crypto.
All the crypto market has to do is to provide the right tools to prevent manipulations. And the whole crypto society will keep working on the solution.
But what a usual trader or miner can change?
In spite of the fact that crabs and shrimps don’t have a significant impact on the market, they still can help the crypto industry to become more reliable for stable institutions. After all, we can ignore pumps and dumps, shady projects, and products asking for our personal info. Step by step right decisions of simple users will lead to positive changes.
