Cryptocurrencies are digital currencies that use cryptographic methods to secure transactions. They are used in a decentralised system with blockchain technology, where each agent in the network guarantees the security and balance of transactions, very different from the traditional central bank model.
Thus, cryptocurrencies remove the role of the middleman in all transactions, speeding up each process within a network in which all users ensure its smooth operation. Blockchain technology enables the secure storage of shared transaction data so that all steps can be tracked by all participants.
Pros and cons of cryptocurrency security
Consensus protocols established by blockchain network users define the speed, size and security of each crypto’s systems, which leaves more or less room for manipulation and hacking by third parties. Smaller networks are the most vulnerable to these increasingly sophisticated and supranational attacks.
Access to cryptocurrency wallets has traditionally been controlled and managed through passwords and other knowledge-based credentials. However, increasingly frequent phishing scams using sophisticated techniques, such as the use of malware, have demonstrated the inoperability of these methods.
According to a report by De.Fi, the first three months of 2023 saw a total of $372 million in scams and exploits in the crypto market, huge financial losses that urgently need to be addressed.
Biometric recognition, the most effective alternative
Biometric digital identity verification methods have proven to be the best alternative to prevent such attacks. Replacing traditional passwords as methods of accessing accounts with the biometric pattern obtained from a user’s face, which is unique and non-transferable, has become the best guarantee of protection for cryptocurrency wallets.
The two-factor authentication on which these procedures are based reinforces the security of the identity verification process. Account ownership is protected by the process, which is based on two simple steps: scanning the user’s ID card details and verifying the user’s photograph with a selfie taken by the user. Using Deep Learning technology, where the latest advances in AI such as passive liveness techniques are applied, ensures procedural safety.
Thus, cryptocurrency wallets are safe from phishing fraud attempts, providing maximum operability for cryptocurrency users.