Cryptocurrency is a digital medium of exchange based on blockchain technology that operates independently from central banks and without government backing, offering an alternative financial transaction method without government meddling. Due to its decentralized nature, security concerns regarding cryptocurrency wallets remain key concerns among both users and businesses; any stolen funds could often remain irretrievable without recourse for recovery resulting in numerous questions about their safety as a form of payment solution.
Security for cryptocurrency wallets rests upon two central concepts: authorization and authentication. This article explores these ideas thoroughly as well as provide some best practices for protecting cryptocurrencies.
Traditional password-based authentication: an outdated solution
Traditional password-based authentication mechanisms have traditionally been employed to verify user identities when signing in to online accounts, however these authentication mechanisms can leave users vulnerable to phishing attacks and data breaches which can cause serious disruption for them. Furthermore, passwords are easy to guess or hack into making them less secure than alternative options available today.
Crypto users have increasingly turned to more sophisticated authentication and authorization tools in order to safeguard their digital assets, providing accurate verification as well as protection from cyber attacks while respecting users’ privacy fully.
An effective biometric face verification tool like iProov can make it impossible for hackers to gain entry to a user’s cryptocurrency wallet using photos or videos of them alone, since Dynamic Liveness uses facial recognition technology to ascertain whether or not someone authenticating themselves at that exact moment in front of a computer.
iProov’s biometric voice recognition technology can also be used to verify whether or not those accessing cryptocurrency exchanges are speaking in real time, which helps prevent fraudsters from falsifying their voices or impersonating another individual – which may be difficult for human operators to detect.
Cryptocurrency exchanges have an enormous responsibility to safeguard their customers’ funds when dealing with volatile assets like cryptocurrency. Unfortunately, many have inadequate KYC and AML controls which allow fraudsters to operate freely on their platforms without being held accountable – this has damaged trust within the industry and stunted growth. As a result, crypto exchanges should prioritize adopting strong biometric verification and authentication technologies like iProov to help implement advanced AML/KYC practices quickly and cost-effectively – book a demo today to discover more!