January 25, 2024
By Anjali Kochhar
Since the beginning of the cryptocurrency era Governments and Banks around the world have echoed the sentiments that cryptocurrencies are not secure for investment. It is a well-known fact that to secure crypto transactions from fraudulent activities and maintain security only username and verification code are not sufficient and there have been multiple instances of losing money to scammers.
Various crypto exchanges are using blockchain and cryptography techniques to enhance crypto cybersecurity, make your transactions safer, and stop cryptocurrency fraud. In the year 2024, with the event of bitcoin splitting, it is expected that the cryptocurrency market will have a bull run. The crypto exchanges are working towards more stringent security measures.
As reported by the Economic Times “Blockchain projects and exchanges will invest in robust security infrastructure, implementing advanced encryption techniques and decentralized storage solutions to safeguard user assets”.
This will not only give confidence to individual investors but will also enhance assurance in financial institutes to have a positive outlook towards the cryptocurrency market.
According to CertiK co-founder Mr. Ronghui Gu, “All things considered, 2023 marked a “positive development” in blockchain security, over $1.8 billion in digital assets were lost across 751 security incidents in 2023. While the amount is still huge, it is 51% lower than in 2022, when losses to hacks and other incidents reached $3.7 billion.” On similar lines it is expected that in the years to come these security incidents will further reduce.
It is a fact that retail investors are more comfortable dealing with secure coins. With scammers waiting for the right moment to strike, the search for a foolproof mechanism to undertake crypto trades is the need of the hour for investors.
Firo Coin also known as Zcoin has been working hard to provide better privacy for all its users as compared to other cryptocurrencies. They released the Lelantus Spark protocol onto its main net on Jan. 18 to achieve a high degree of privacy which can mask the IP addresses of the end user and increase the transparency in the blockchain.
Lelantus Spark allows users to grant 3rd party access to transactions without compromising privacy by exploiting incoming and ensuring full-view keys.
Daniele Servadei, CEO, e-commerce solution Sellix, told FinTech Magazine that “Weaker operators would inevitably be shaken out in the longer term, as crypto enthusiasts and believers, we need to start looking at our industry more critically, we need to remove the weeds of scammers and swindlers from the very foundation that makes up crypto as we know it today”.
Future trends in Crypto world
It is expected that the blockchain market could cross $160 billion by 2029. The future of crypto security will increase many folds with the growth of decentralized finance (DeFi), an increase in regulations by the governments, investments in blockchain, NFTs, & integration of crypto blockchain with IoT and AI.
Regulatory Framework
As cryptocurrency continues to develop, governments and regulatory bodies around the world are increasing their efforts to formulate guidelines. These regulations will enhance protection for retail investors and will reduce cases of fraud.
Stringent regulatory guidelines will result in stricter compliance requirements for the crypto exchanges and eliminate bad players. It is also expected that additional tax will be levied on the exchanges and investors to maintain transparency.
NFTs (Non-Fungible Tokens)
These are unique digital assets that have revolutionized how a company monetizes and protects its intellectual property. With NFTs, businesses are creating and dealing in exclusive digital forms of art, music, real estate etc. NFTs provide enhanced security features using blockchain technology, which ensures that the ownership rights are verified and protected.
AI and IoT
The merger of the most advanced technologies of the era i.e. Blockchain, IoT, and AI will be a giant leap for the secure future of cryptocurrency. The amalgamation of these technologies will enhance data wecurity, increase transparency, and enhance reliability across the spectrum.
Blockchain’s feature of decentralization with absolute records, secure communications, and authenticated transactions by IoT devices without brokers. Together these advanced technologies will provide a secure and transparent experience.
Additionally, features of AI will also be enhanced with the integration of invulnerable blockchain algorithms. This will be beneficial in maintaining the security of data like medical, financial, etc.
Governments, regulators, and crypto exchanges are working towards more secure and transparent crypto transactions in the future for the investor. Individuals dealing in cryptocurrency must follow basic security features like:
-Carrying out thorough crypto research before investing.
-Using digital wallets.
-2-factor authentication.
-Check your account regularly.
-Withdraw your cryptocurrency and save it in your wallet on a PC.
-Avoid free Wi-Fi services.
With these measures, the future of cryptocurrency security looks promising, fostering confidence among investors and strengthening the industry’s foundation against scammers and fraudsters.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
