Blockchainmedia - Coinstore's Head of Global Business Development, James Toh, explained a number of new challenges and opportunities in the crypto world and how to leverage them into positive things in the future.
The crypto world has recently been shaken by a number of cases, problems and challenges, especially those experienced by centralized crypto exchanges (CEX). In this case, security issues also become a separate topic of discussion, especially those related to the dynamics of decentralized crypto exchanges (DEX). This was conveyed by Coinstore's Head of Global Business Development, James Toh, as well as his thoughts on the challenges and opportunities that lie ahead in the crypto world.
At the beginning, James emphasized the important role of CEX in the crypto world despite its vulnerabilities and that CEX can still survive in tandem with DEX, because each has its own advantages and disadvantages.
"We still cannot be separated from CEX, and it will continue to coexist with decentralized exchanges (DEX) in the future. Moreover, storing and transacting crypto assets via CEX for example at Coinstore has so far been very safe, easy and comfortable. On the other hand, storing crypto "using cold storage is a recommended alternative, especially for the long term," said James in his official statement, Thursday (7/12/2023).
James also referred to the Proof-of-Reserves concept which was implemented by a number of well-known CEXs some time ago. According to James, this doesn't actually guarantee any security.
"In fact, by disclosing crypto addresses and balances openly through Proof-of-Reserves there are risks involved, even though the intention is positive for the sake of the transparency we want to achieve in the crypto world," he said.
Wallets on DEX are not always safe
In contrast to the general belief in the crypto world that wallets on DEX are the safest for storing crypto, James actually believes otherwise.
"The crypto wallet on DEX does allow users to have full control over their crypto, because the private key is on the user's side. However, that does not guarantee security. Remember, even though the wallet on DEX is open source, it was developed by a number of developer teams centrally, so "There could potentially be a back door in the system that could make crypto unsafe," added James.
Still regarding security in the crypto world, James highlighted the vulnerability aspect of using smart contracts in decentralized finance (DeFi). In this regard, James urged crypto project owners and managers to ensure clear security and audits on the smart contracts they use, so that users feel safer.
New Opportunities of the Crypto World in the Future
Regarding new opportunities in the crypto world for the future, James revealed many things, including Ordinals Inscription, Spot Bitcoin ETF and the role of bridge protocols between blockchains.
"For me, Ordinals Inscription is interesting, because it increases the use case of the Bitcoin blockchain for the issuance of fungible tokens and non-fungible tokens. This ultimately increases demand for BTC itself. Although commercially it is still questionable. And that is in line with the potential for its birth "The first Bitcoin Spot ETF in the United States next year will be able to increase market liquidity, reduce volatility, and attract institutional investors," he explained while emphasizing the increasing maturity of regulations.
Coinstore Main Focus Security
Above all, James ensures that the security aspect is always Coinstore's main focus so that users always feel comfortable and safe.
"Asset security is our top priority. We have invested heavily in security infrastructure and undergo regular audits. We must always do this, especially as we enter our third year in this dynamic crypto world. Just look at our Launchpad program average oversubscription the rate has reached 357.57 percent.
Finally, James advised the public to use a crypto exchange that is clearly safe and proven to be far from hacker interference such as Coinstore.
