There are significant vulnerabilities in most crypto exchange designs, and the CEO of Bybit is not at all surprised by the fact. Hacking crypto exchanges is not something astonishing anymore. The security of cryptocurrency is on the news once again after KuCoin got exposure to hackers. However, the CEO of Bybit Ben Zhou says that this is nothing surprising anymore.
What’s the Main Issue?
Ben Zhou said that exchanges behave as a “single point of failure”. Crypto exchanges are vulnerable to similar security problems, just like every other platform as a centralized web app. Exchange security turns to be holding more importance as traders and inverters are positively taking exchanges to task for protecting funds.
A maximum number of crypto exchange storage networks and servers use hot wallets to store digital currencies, says Ben Zhou. He also added that hot wallets should be protected appropriately to keep them safe from the hands of scammers and hackers.
He also thinks that a cold wallet facility is thus way safer than hot wallets as the latter is connected with the Internet making it more exposed to frauds. On the other hand, cold wallets aren’t connected to any network. The only drawback it comes with is that you will not be able to withdraw a large amount from an exchange immediately.
Security Should be the First Priority
On the basis of the Bybit CEO, for an exchange platform investing for its security should be the biggest and the essential task. It becomes even more important if the platform is working online, which is actually the fact for numerous crypto exchange platforms. In order to make the platform more guarded from possible hacking, crypto exchange platforms should improve address vulnerable points and for penetration testing, apply several security layers.
Zhou’s Suggestion on Exchange Platform Security
It is mandatory for any security system to protect data across each and every point of interaction. This signifies securing user info from account registration, trading, login, and any data exchange with the exchange platform.
Ben Zhou again added that this could be only fulfilled with the application of best practices for “application lifecycle management”, engaging well known and knowledgeable security consultants for carrying out bounty programs and penetration testing within the “white hat community” to recognize any possible vulnerabilities.
Bybit’s Intelligent Security
He also suggests crypto exchanges to collaborate with well-known security companies to perform security audits, apply strict management procedures, and spend in zero-trust architecture. What zero-trust architecture needs are the verification for anyone acquiring any service to prevent any possible internal as well as external hacking.
Zhou revealed that Bybit actually invested in strengthening its security protocols and using cold wallets to store digital currencies as it is safer.
Exchange Vulnerabilities Should Stop
What’s important is making the security stronger to prevent any sort of security breaches. KuCoin becoming a victim to hackers is another example of how vulnerable these platforms have become.