Electrum wallet is a Bitcoin software wallet that runs on Windows, Linux and Mac operating systems. It was developed in 2011 by Thomas Voegtlin. It is user-friendly and has a simple interface that anybody can enjoy. Being a software wallet, it offers more security than an online wallet but less security than cold wallets like paper and hardware wallets.
The Electrum wallet, unlike other software wallets, only stores Bitcoin. It does not store other cryptocurrencies. It does not limit a user on the number of coins that he or she may want to use with the platform. This an advantage for users that make payments with Bitcoin.
The simple, user-friendly interface aside, how secure is the Electrum wallet?
Electrum wallet security features
The Electrum wallet depends on the following features to ensure the protection of user assets;
• The Electrum wallet uses password protection to allow access to the private keys that are stored in an encrypted wallet file. The password locks away hackers, and the strength of the password is ideal for shunning out key loggers.
• The wallet uses open source software, and anyone can inspect for bugs and security breaches. This makes it faster and easier to correct the code in case of a threat. The software code is written in Python. Python is an old programing language that is strong, reliable, and well known by many people. This means that many people can correct the code in case of errors.
• The Electrum wallet allows for multi-signature verification of transactions. This greatly increases the security of the user’s assets. Any transaction will have to be verified by the sender and recipient before a blockchain is created. Hackers will need to surpass two levels of security for them to perform any transaction with your coins.
• Electrum wallets have a two-factor authentication which also increases the security of the wallet.
• The Electrum wallet does not store any user data or private keys on its server. Users have the freedom to control their private keys for maximum security and privacy. This creates a hurdle for hackers because it becomes impossible for them to access sensitive information like security phrases and private keys.
Although the Electrum wallet has a lot of security features, it is still a hot wallet. This means that it is subject to all the vulnerabilities that hot wallets have. It is only as secure as the computer that it’s used. Hackers can still gain access to individual Electrum wallets by the use of viruses and malware.
In 2017, the Electrum wallet network was a victim to a phishing attack, and the hackers managed to get away with around 245 Bitcoins. This was equivalent to around 880,000 dollars at the time. The company reported the attack using a tweet that warned users only to download Electrum wallets from their official website.
The hackers created multiple fake servers on the Electrum network that generated error messages whenever a user attempted to broadcast a transaction. The error messages provided a link to a malicious malware that masked itself as an update to the Electrum wallet. The Electrum network has however fixed this by the release of the updated wallet version 3.3.2.
The Electrum wallet is a state-of-the-art software wallet. It has impressive design features and an interface that is easy to use. The security of the Electrum wallet was recently challenged by a cyber-attack where 245 Bitcoins were stolen. The Electrum network has updated its security since the attack and users can be confident that their crypto-coins are safe in the system.
To guarantee security, the Electrum wallet operates with a two-face authentication procedure and multi-signature verification of transactions.
Since Electrum is a hot wallet, one should make sure that he or she has an updated anti-virus to protect his assets. It is also recommended to avoid untrusted sites. Users should only download and install the Electrum wallet software from the official website or verified online stores.
Users are responsible for the protection of their private keys and their security phrases. The Electrum network does not store or save private keys in its network to ensure privacy and security.
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