Cryptocurrencies or digital money, as the world likely addresses, has undoubtedly come a long way while facing its share of ups and downs. Not only people were highly skeptical about them owing to their intangible access, but illicit activities like exchange hacks made the situation even worse. The intruders sneak into the blockchain running the entire crypto business and steal millions or even billions of dollars of the digital coins in a matter of minutes.
Theft attacks or hacks in Bitcoin exchanges are not a new thing and certainly is not something which one can easily let go of as it leads to heavy losses to the investors and loss of reputation for the exchange platform. Though the Bitcoin exchanges have triggered their counter solutions to face such threats, there is always a fear of a large hack hovering over this highly-vulnerable ecosystem.
Bitcoin is a programmable asset, and this lucrative feature of the world’s first digital coin is certainly a blessing for its system. In a constant urge to come out with advanced ways to build crypto exchanges where users do not get the opportunity to turn over their assets until the very moment in which they will process the trade. Having being studded with an array of such out-of-the-box features, the new crypto exchange, Nash is likely to bring a smile of satisfaction for its investors.
Nash- The New Age Technology:
Up until now, the customers need to deposit their coins in the trading networks with the exchange taking the custodian right for their funds. This makes the exchange platform a daunting hub for the hackers who try hard to find a way through which they can get into the exchange’s internal wallet system.
Nash, however, renders the users with a facility where they do not have to hand over the custody of their crypto assets to some third party before they decide to trade.
There is a strong belief amongst the Bitcoin enthusiasts that the Lightning Network is likely to bring down the transaction costs, boost up the transaction volume, and eventually lead to efficient user privacy. The usage of an identical technology pedagogy can be employed to enhance the security mechanism of crypto exchanges.
Nash operates on a system of state channel smart contracts to manage trading activities. The system is presently live on the Ethereum and Neo blockchains. Recently, Ethereum blockchain defeated Bitcoin in terms of overall adoption criteria. Though, Ethereum has been below Bitcoin over the past years.
Fabio Canesin, the proud Co-founder of Nash, is hopeful that soon, Bitcoin support will be added to their reputed platform.
We initially demonstrated that our proposed architecture could deliver cross-chain markets that compete with the performance of centralized exchanges – an extremely important parameter for liquidity,
said Canesin. He added that
For this reason, we focused on the NEO-ETH market. Now that this is live and functioning well, we can move onto other networks. Bitcoin is the obvious next candidate owing to its importance in our industry.
One of the prominent advantages of using state channels is that they foster immediate transactions, which saves time for the users as they do not have to wait for blockchain confirmations to initiate their trades. There is an important point to be noted that though customer funds cannot be compromised by the hacker’s, they still can cause huge damage when they get successful in infusing a malicious software update to Nash users. The security paradigm of the Nash network also relies on the solidarity of the smart contracts supporting the exchange platform. The current year has seen several instances of vulnerabilities in advanced smart contracts networks.
“Updates require a signed payload using offline keys,” said Canesin. He also stated that
However, if a hacker did somehow manage to push a malicious update, users would also have to log in and sign a transaction before encountering an issue. The data in our software is not enough since user-provided entropy is also required. We try to mitigate these risks by building several layers of protection.
Nash exchange is also working efficiently on its mobile wallet project, browser extension, and payment processing feature that will all be clubbed with one another.
With Nash exploring the best remedial solutions for the hacking issues that bring shame for the crypto exchanges worldwide, it is likely to popularize Bitcoin as the currency of the future while withering away any potential probability of a ban on this digital coin.