Security in the cryptocurrency space
One of the top exchanges Coinbase plans on strengthening its security for its platform within the coming months. The exchange is yet to suffer a breach on its platform, however this may change soon in the future.
According to the CEO of Coinbase Brian Armstrong, the secret to its successful role in Wall Street Journalistic reports with Paul Vigna at this year’s Consensus event this morning, he mentioned that network can become compromised through attempts to infiltrate the office, which is why he thinks security is needed as well.
He explained that they are hiring third-party firms so they can try to break into their system. In this light, the company plans on having candidates apply for a job while going through a security process, which will see them try to break into the system of Coinbase.
Even though the CEO expects that some of their security layer measures can be broken into, he still thinks that this is a good strategy and better than having a hacker steal millions in dollars like was the case when hackers reportedly stole from MT. Gox, Binance and Cryptopia.
The company also says that all customer funds will be stored in geographically distributed databases and that the exchange will build fourth generation or cold-storage system wallets.
These wallets will be holding customers keys offline and will be rebooted every 18 months on average. How this test will be ran is still unknown as the company plans on performing some strong security upgrades to its network.
Coinbase expects to achieve great results with the implementation of this security test for the improvement of its network for the future.
This approach, however, seems to more focused on the company’s physical security rather than its system of transactions at large. It remains to be seen whether this move will be successful and achieve desired results.