How White Hat Hackers Could Fix Crypto
One of the biggest issues facing crypto is the lack of secure infrastructure. Until the issue is sorted out, it will hinder crypto from reaching the same level as established fiat markets. Here are some of the issues that have been identified and how they could be resolved.
At the start of January 2019, the Ethereum Classic was the victims of a 51 percent attack. This was especially shocking since the project is a top 20 crypto project. An attacker gained access to 51 percent of the hashrate on ETH and double spent through various crypto exchanges. The losses were estimated at about $1 million.
While it has always been known that a 51 percent attack is likely, it has always been thought that it would affect small altcoins. ETC is a major crypto coin with a market cap of about $500 million. The success of the attack should thus force the crypto community to rethink the security of even large crypto networks.
In January 2019, a crypto exchange based in New Zealand called Cryptopia said that they had been hacked. The exchange didn't give any details on how much was lost. It raises questions on the code that allowed the loss to occur. Cryptopia is still shut down as the breach is being examined.
The events both happened in 2019. This left most in the crypto world confused as to how such events could still be occurring. It has been a full five years since Mt. Gox was hacked.
What Is Going On?
Recent events have brought many questions to mind. The major issue is that system infrastructure has serious failings. It is obvious that there are problems in the code of most cryptosystems and projects.
Considering the amount of code that developers have to work on, it is easy to see how this could happen. Besides that, most of the work is often done under strict timelines. This can lead to major factors being overlooked.
When developers pour over a huge amount of code, they will most likely miss some of the errors they made. This is known as the generalization effect. In text documents, this is corrected using a proofreader. However, when it occurs in code, a simple error could mean catastrophic failure.
White Hat Hackers Could Help
With this in mind, it is obvious that cryptosystems could do with regular reviews. It is plausible that some of the issues rocking the industry could be prevented using fresh sets of eyes.
In the digital era, the solution is usually to use white hat hackers. Developers come in and look at the code while they are paid for the labor and time. If the bounty hunters find any errors, they get an extra bonus. Payments are usually made in proportion to the level of a threat.
Many large companies often use this concept with a lot of success. For instance, Google paid $3 million to bounty hunters in 2017. If they are effective in large corporations, it is clear that they have a role to play in the crypto world.