The post Public Key appeared first on Coinpedia Fintech News

pair of keys used in encryption and digital signatures. It’s meant to be shared with others and is used to encrypt data or verify the authenticity of data. Public keys help secure communications and ensure data privacy and authenticity.

What is Public Key?

A public kеy in thе contеxt of cryptocurrеncy is a cryptographic kеy that is usеd to crеatе a uniquе idеntifiеr for a usеr’s wallеt addrеss.  It’s onе half of a kеy pair that includеs a privatе kеy.  Hеrе’s how it works:

Kеy Pair:

 Cryptocurrеncy wallеts typically usе a pair of kеys: a public kеy and a privatе kеy. Thеsе kеys arе gеnеratеd using cryptographic algorithms.

Public Kеy: 

Thе public kеy is madе availablе to thе public,  hеncе thе namе.  It is usеd to crеatе a public addrеss or wallеt addrеss,  which is a long string of alphanumеric charactеrs.  This addrеss is likе your account numbеr,  and you can sharе it with othеrs to rеcеivе cryptocurrеnciеs.

 Addrеss Crеation: 

Whеn somеonе wants to sеnd you cryptocurrеncy,  thеy usе your public addrеss.  Thеy crеatе a transaction that spеcifiеs your public addrеss as thе rеcipiеnt,  and this transaction is signеd with thеir privatе kеy.  This procеss еnsurеs that only you,  thе holdеr of thе corrеsponding privatе kеy,  can accеss thе funds sеnt to that addrеss.

 Non-Rеvеrsiblе: 

It’s important to notе that whilе you can dеrivе a public kеy from a privatе kеy,  you can’t rеvеrsе thе procеss.  In othеr words,  you can dеtеrminе thе public addrеss associatеd with a privatе kеy,  but you can’t dеtеrminе thе privatе kеy from a public addrеss.  This onе-way rеlationship is a fundamеntal aspеct of public-kеy cryptography.

 Sеcurity: 

Public kеys arе,  as thе namе suggеsts,  mеant to bе public.  Sharing your public kеy or wallеt addrеss doеsn’t posе a sеcurity risk.  Howеvеr,  your privatе kеy must bе kеpt sеcrеt,  as it providеs accеss to your funds.  Anyonе with thе privatе kеy can spеnd thе cryptocurrеncy associatеd with thе corrеsponding public addrеss.

Key highlights

Staking with CryptoStake takes the stress out of passive crypto income. Kick back, tap your coins into their intuitive app, and watch rewards roll in no matter what the markets do.

The cherry on top is their calculator that lets you optimize profits like a pro.

Their beginner-friendly app is a cinch while also satisfying institutions with bank-level protection, compliance, and uptime.

Many investors have found themselves at the mercy of the ever-volatile cryptocurrency market. While trading holds the promise of big gains, the reality is that it takes nerves of steel to make consistent profits through ups and downs. Thankfully, there is a more peaceful way to earn returns in crypto - through staking.

Much like earning interest in traditional finance, staking (or locking up) your crypto holdings allows you to generate a yield without needing to actively trade. By participating in the blockchain consensus process through "proof of stake", you are rewarded just for holding onto your coins. While the underlying assets may fluctuate in price, your staking rewards keep accruing regardless.

For the risk-averse or hands-off investor, crypto staking provides an easy way to earn a passive income without stressing over market movements. In this article, we will explore one of the leading platforms for doing just that - CryptoStake.

CryptoStake presents a compelling option for simple, high-return non-custodial cryptocurrency staking. Some factors to consider:

Pros:

Attractive double-digit staking yields

No technical expertise required

Full ownership and control of funds

Tax reporting assistance

Smooth mobile app experience

Cons:

Currently only supports 3 coins for staking

Staking made simple with CryptoStake

CryptoStake is a one-stop shop that simplifies the staking experience. Through their web interface and mobile app, users can conveniently stake major proof-of-stake coins like Ethereum, Polkadot and Cosmos to earn annual percentage yields (APYs) of up to 15%+.

What sets CryptoStake apart is its emphasis on security and regulatory compliance. As a Swiss-based company, they adhere to stringent financial protocols and house user funds in encrypted offline "cold storage" for optimum protection. Large institutional investors have recognized CryptoStake as a trusted provider thanks to features like encrypted private keys and proof-of-stake accountability.

The platform employs a "triple protection mechanism" across three independent data centers to ensure continuous uptime. Through the Cryptostake mobile app, users can easily monitor their stakes and associated rewards from anywhere in the world.

CryptoStake addresses important issues for both individual and enterprise users. Their robust security practices and regulatory transparency build confidence for those seeking a hands-off way to generate crypto yields.

CryptoStake features

While other platforms also offer staking services, CryptoStake aims to provide added security, reliability, and transparency that sets it apart from the competition. Here are some of its key advantages:

Non-custodial wallet: CryptoStake never holds users' private keys, giving them full control over funds at all times.

Geographic redundancy: A "triple protection" system with servers in multiple regions ensures 99.9% or more uptime.

Regulatory compliance: As a Swiss company, CryptoStake adheres to strict financial standards for protecting investors.

Native coin rewards: Users get paid in the same coins they stake rather than obscure alternate tokens from liquid staking platforms.

Intuitive mobile app: Beginners can start earning in minutes thanks to the seamless CryptoStake Wallet experience.

Industry-leading calculator: Plan strategies using highly accurate yield projections accounting for evolving market factors.

Asset protection: Private keys are cryptographically secured using military-grade measures and stored in redundant data centers. Funds remain fully controlled by users.

Flexible terms: Staking durations can be customized from one week to years to align with portfolio strategies.

By prioritizing security, reliability, and transparency above all else, CryptoStake provides the safest way for risk-averse users to generate steady crypto returns through passive staking.

Service

Custodial Model

Key Differences

CryptoStake

Non-Custodial

Users retain full ownership and control of funds at all times.

Centralized Exchanges

Custodial

Requires trusting the exchange with your funds. Often lower APYs.

Liquid Staking Providers

Partial Custody

May charge significant commissions on rewards earned. Introduce counterparty risk.

Solo Staking

Non-Custodial

Requires technical expertise to set up and maintain a validator node.

Beginner-friendly yet powerful tools

While staking can seem opaque to newcomers, CryptoStake lowers the barrier to entry significantly with its intuitive mobile interface. The app offers a simplified one-stop shop for transferring funds, selecting coins/durations, and monitoring balances - taking much of the complexity out of the process.

Image: Staking details of CryptoStake

Perhaps the most impressive feature, however, is CryptoStake's yield calculator. The calculator lets users plug in a coin, amount, and timeframe to forecast rewards down to the last satoshi. What sets this apart is its industry-leading accuracy - factoring in evolving variables like coin price fluctuations, emissions schedules, and more.

The calculator empowers both novice and expert investors alike. Beginners can use it to design their first stakes, while advanced users deploy it for optimizing advanced multi-coin, multi-term strategies to maximize returns. It's a simple yet powerful research tool that enables users to make informed staking choices with confidence.

High APYs with relatively low risk

Staking provides extremely attractive yields compared to traditional savings accounts. For example, you can earn over 15% APY just by staking your Cosmos (ATOM) on CryptoStake.

Even better, staking yields are very low risk. As long as the blockchain you're staked on continues operating, you'll receive your staking rewards like clockwork. There's no dependence on volatile crypto prices. Staking income is almost like a guarantee, whereas trading comes with the risk of losses.

Image: DOT, ATOM, ETH Staking Details on CryptoStake

Secure, compliant infrastructure for institutional players

While beginner-friendly, CryptoStake handles big leagues as well. Their military-grade security and regulatory compliance attract major investment.

Three geographically separated data centers ensure uptime superiority over competitors. Cold storage protects the vast majority of funds, with military-level encryption on all systems.

Legal entities undergo thorough KYC/AML screening. Tax forms track earnings for reporting. IT professionals constantly monitor and audit infrastructure for vulnerabilities.

Such features reassure complying institutions like family offices, funds, and traditional finance players dipping their toes into digital assets. CryptoStakes provides a comfortable on-ramp for big money.

As adoption expands, maintaining security and regulative standards grows increasingly crucial. CryptoStake paved the way, setting the gold standard now emulated across the fledgling staking industry.

Getting started with passive crypto income

By now you should have a solid sense of why staking assets on CryptoStake is the easiest and most secure way for ordinary investors to generate consistent crypto gains without complexity or volatility. But for those ready to jump in, here's a quick overview of the process:

Sign up for a CryptoStake Wallet - Download the iOS app or Android app, and complete account registration.

Fund Your Wallet - Transfer the coins you want to stake from an external wallet to your new CryptoStake. Supported cryptocurrencies: ETH, DOT, ATOM, ADA, BTC, XRP, LTC, TRX, USDT, USDC

Choose coin to stake.

Monitor Rewards - Your staked amount will grow each period as new coins are deposited.

Withdraw/Re-stake - At the end of your term, you can either withdraw sums or re-stake them for another period.

With CryptoStake providing infrastructure, security, and tools - all you need is a small initial coin deposit and soon you'll be earning effortless passive profits without volatility's hassles. Staking has never been simpler or safer, so waste no time getting started.

Image: Mobile Application Interface of CryptoStake

The bottom line: getting started is as simple as tap, tap, stake

Staking offers crypto investors an opportunity to put market turmoil behind them and focus on building wealth through low-maintenance, reliable yields. By maximizing security, usability, and earning potential, CryptoStake sets the gold standard as a one-stop shop for gaining this advantage. If you're ready to earn easy crypto income without drama, it's time to put your coins to work staking with CryptoStake.

Start Staking

In recent times, the crypto space has been plagued by scams and rugpulls, leaving investors wary of navigating the volatile market. Live events have only intensified these concerns, highlighting the urgent need for innovative solutions. Enter Safo Chain, a beacon of trust and security in the blockchain realm, committed to eradicating fraudulent activities.The Scourge of Scams and RugpullsCryptocurrency enthusiasts have witnessed a surge in fraudulent schemes, tarnishing the industry's reputation. Live events have become breeding grounds for unscrupulous actors, exploiting the lack of security measures and jeopardizing investments. It's in this climate that Safo Chain emerges as a defender of integrity and transparency.Safo Chain's Technological FortressStepping into the fray, Safo Chain employs cutting-edge technologies to shield investors from scams and rugpulls. Among these, HarvestHub farms and TrustLaunch pad stand out as beacons of hope, introducing revolutionary solutions that address long-standing issues from past bear markets.HarvestHub Farms: Safo Chain's liquidity providers inspired approach ensures a fertile ground for secure and sustainable growth. HarvestHub Farms leverage smart contracts and decentralized finance (DeFi) principles to provide a robust ecosystem, shielding investors from potential pitfalls.TrustLaunch Pad: Safo Chain pioneers the TrustLaunch pad, a launchpad that goes beyond token launches. It acts as a fortress, vetting projects rigorously to weed out potential risks. This marks a significant stride toward restoring confidence in the crypto space, presenting a secure platform for both investors and projects.Safo's Technological ArsenalWith an unwavering commitment to fortifying the crypto landscape, Safo Chain is set to propel its technologies to new heights. The integration of Safo products into MaxxChain promises an unparalleled level of security, while the development of a cross-chain arbitrage bot exclusively for Safo VIPs reinforces the commitment to safeguarding investments.Embark on the Safo JourneySafo Chain extends an invitation to all crypto enthusiasts to join its journey towards a scam-free future. Be part of the on TrustLaunch investors and experience firsthand the transformative technologies reshaping the crypto landscape. Test the cutting-edge solutions that promise to redefine safety and security in the crypto world.Open for PartnershipsSafo Chain is not just about individual success; it's about fostering a collective movement towards a safer crypto environment. As a testament to this commitment, SafeOne Chain welcomes partnerships to spread its technologies far and wide, benefiting all crypto users. By collaborating, Safo aims to create a united front against scams and rugpulls, ensuring the shared prosperity of the entire crypto community.ConclusionIn a world where trust is a rare commodity, Safo Chain emerges as a formidable force against scams and rugpulls. With HarvestHub Farms, TrustLaunch pad, and a robust technological arsenal, Safo Chain leads the charge in creating a secure and reliable crypto ecosystem. Support Safo in its mission to reshape the future of blockchain – a future where investors can navigate the market with confidence and trust.Note: This is an sponsored post! #Innovation #safeonechain #Security #BinanceBlockchainWeek #News $LUNA $ETH $USTC

The post Wallet appeared first on Coinpedia Fintech News

A crypto wallet is like a digital safe for your cryptocurrencies. It stores and protects your digital coins allowing you to send and receive them securely.

What is Wallet in Crypto?

A crypto wallеt is likе a digital kеychain for your cryptocurrеnciеs.  It storеs your privatе kеys,  which arе еssеntially thе passwords that givе you accеss to your digital assеts.  Think of it as a sеcurе vault for your virtual monеy. 

Thеrе arе various typеs of crypto wallеts,  еach with its own fеaturеs and lеvеl of sеcurity:

1. Papеr Wallеts:

Your privatе kеys arе printеd or writtеn on a physical mеdium,  likе papеr,  and storеd offlinе.  Whilе this mеthod еnhancеs sеcurity by kееping thе kеys offlinе,  it can bе lеss convеniеnt for rеgular transactions. 

2. Hardwarе Wallеts:

Thеsе arе physical dеvicеs (hardwarе) that storе your privatе kеys offlinе.  Thеy arе considеrеd onе of thе most sеcurе options bеcausе thеy arе not connеctеd to thе intеrnеt whеn not in usе. 

3. Onlinе Wallеts:

Thеsе wallеts еxist as softwarе,  еithеr in thе form of mobilе apps or dеsktop applications.  Thеy arе convеniеnt for еvеryday transactions but may bе suscеptiblе to onlinе thrеats.  It’s crucial to choosе a rеputablе providеr with strong sеcurity mеasurеs. 

Using a crypto wallеt involvеs thе following stеps:

– Choosе a Wallеt Typе: Dеpеnding on your nееds and prеfеrеncеs,  sеlеct a papеr wallеt,  hardwarе wallеt,  or an onlinе wallеt. 

– Sеcurе Your Privatе Kеys: Kееp your privatе kеys safе and nеvеr sharе thеm with anyonе.  Losing your privatе kеys mеans losing accеss to your cryptocurrеnciеs. 

– Managе Your Assеts: With your wallеt,  you can sеnd,  rеcеivе,  and managе your digital assеts.  Transactions arе vеrifiеd using your privatе kеys. 

– Explorе Additional Fеaturеs: Somе wallеts allow you to intеract with dеcеntralizеd financе (DеFi) applications,  shop at storеs accеpting cryptocurrеnciеs,  and morе. 

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Introduction to Blockchain in Voting Systems

What is Blockchain?

The Current State of Voting Systems

How Blockchain Can Transform Voting

Security and Immutability

Transparency and Trust

Accessibility and Convenience

Reduced Costs and Increased Efficiency

Real-World Applications and Case Studies

Challenges and Considerations

Enhancing Voter Privacy and Identity Verification

Decentralization: A Core Benefit

Overcoming the Digital Divide

Legal Framework and Standardization

Pilot Programs and Testing

Integrating with Existing Systems

Public Perception and Education

International Cooperation

The Future of Blockchain in Voting

Conclusion

Introduction to Blockchain in Voting Systems

In recent years, blockchain technology has emerged as a promising solution to revolutionize voting systems in democratic processes. This technology, best known for underpinning cryptocurrencies like Bitcoin, offers a level of security, transparency, and efficiency that traditional voting methods struggle to match.

What is Blockchain?

Before delving into its application in voting, it’s crucial to understand what blockchain is. Essentially, blockchain is a distributed ledger technology that records transactions in a secure, transparent, and immutable way. Each ‘block’ in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.

The Current State of Voting Systems

Traditional voting systems, whether paper-based or electronic, face several challenges, including voter fraud, low voter turnout, and logistical complexities. Issues like ballot tampering or machine malfunctions can also undermine public trust in the electoral process.

How Blockchain Can Transform Voting

Blockchain technology offers a novel approach to tackling these challenges:

Security and Immutability

With blockchain, each vote would be recorded as a transaction on the chain, making it nearly impossible to alter or delete. This immutable record-keeping enhances the security of the voting process.

Transparency and Trust

Blockchain’s transparency means that all transactions (or votes, in this case) can be verified by any participant. This openness can significantly increase trust in the voting process.

Accessibility and Convenience

Blockchain-based voting systems can be accessed remotely, potentially increasing voter turnout by allowing people to vote securely from their homes.

Reduced Costs and Increased Efficiency

By digitizing the voting process on a blockchain, the costs and time associated with traditional voting methods can be substantially reduced.

Real-World Applications and Case Studies

Several countries and organizations have already begun experimenting with blockchain-based voting systems. For instance, Estonia has been a pioneer in implementing blockchain in its e-governance initiatives, including voting.

Challenges and Considerations

Despite its potential, the implementation of blockchain in voting systems is not without challenges. These include technological barriers, the digital divide, concerns over voter privacy, and the need for a robust legal framework.

Enhancing Voter Privacy and Identity Verification

One of the paramount concerns in voting is ensuring voter privacy while maintaining accurate identity verification. Blockchain can address this through advanced cryptographic techniques like zero-knowledge proofs, allowing voters to prove their eligibility without revealing personal information.

Decentralization: A Core Benefit

Decentralization, a core feature of blockchain, means that the voting system doesn’t rely on a single central authority. This decentralization can significantly reduce the risk of systemic fraud or centralized attacks on the voting process.

Overcoming the Digital Divide

The digital divide poses a significant challenge to the widespread adoption of blockchain voting. Ensuring equitable access to digital voting systems for people without reliable internet access or technological literacy is crucial. Strategies to bridge this divide could include public education campaigns and the provision of accessible voting kiosks.

Legal Framework and Standardization

Developing a comprehensive legal framework that governs blockchain-based voting is essential. This framework would need to address issues such as data protection, cross-border voting regulations, and the standardization of technology for consistency and interoperability between systems.

Pilot Programs and Testing

To build trust and iron out technical challenges, pilot programs are vital. These pilots can provide valuable insights into the practical aspects of blockchain voting, including voter behavior, system security, and overall feasibility.

Integrating with Existing Systems

For a smoother transition, blockchain voting systems could initially be integrated with existing electoral mechanisms. This hybrid approach allows voters to choose between traditional and blockchain-based voting, easing the transition period.

Public Perception and Education

Public perception and understanding of blockchain technology are critical to its adoption. Educational initiatives that explain the benefits and mechanics of blockchain voting, addressing common misconceptions, can help build public trust and acceptance.

International Cooperation

International cooperation in developing standards and sharing best practices for blockchain voting can play a crucial role in its global adoption. Such collaboration can ensure the development of universally accepted protocols and security standards.

The Future of Blockchain in Voting

Looking forward, blockchain could play a pivotal role in modernizing voting systems worldwide. As the technology matures and becomes more widely understood and accepted, we may see an increasing number of countries adopting blockchain-based voting solutions.

Conclusion

Blockchain technology’s potential in revolutionizing voting systems is immense, offering a pathway to more secure, transparent, and accessible democratic processes. As the world becomes increasingly digitized, embracing innovations like blockchain in voting could be crucial in preserving the integrity and trust in democratic systems. The journey towards blockchain-enabled voting will require careful planning, robust legal frameworks, public education, and international cooperation, but the potential rewards for democracy are significant.

As blockchain technology continues to evolve, its application in enhancing democratic processes presents an exciting frontier. The successful implementation of blockchain in voting systems could mark a significant step forward in ensuring the integrity, security, and fairness of elections worldwide.

The post Cryptocurrency Losses Near $2 Billion in 2023 Amid Security Breaches and Scams, Reports De.Fi appeared first on Coinpedia Fintech News

In a comprehensive annual report, De.Fi, a leading security application, revealed that the cryptocurrency sector faced losses nearing $2 billion in 2023. This figure, although significant, marks a reduction from the $4.2 billion in losses recorded in 2022, highlighting the ongoing security challenges in the industry.

Key Factors Behind the Reduction in Losses

The report attributes this decrease in losses to several key factors. Enhanced security protocols, heightened awareness within the crypto community, and a general decrease in market activity played crucial roles. This decline is particularly noteworthy considering the $40 billion lost in major collapses involving entities like Terraform Labs, Celsius, and the FTX exchange. The bear market phase, where various alternative tokens experienced substantial slumps, also coincides with this reduction.

Blockchain-Specific Losses

Ethereum, the largest blockchain in terms of active users and value locked, faced the highest losses, with approximately $1.35 billion stolen in around 170 incidents. The report highlights Ethereum’s attractiveness to malicious actors due to its expansive ecosystem and high-profile projects. One notable exploit was the $230 million attack on the cross-chain platform Multichain in July.

The BNB Chain also emerged as a target, witnessing losses totaling $110.12 million across 213 incidents. Networks like zkSync Era and Solana reported losses of $5.2 million and $1 million, respectively.

Centralized Platform Vulnerabilities

Centralized platforms, including exchanges and trading platforms, reported significant losses of approximately $256 million in seven cases. A major incident was the November attack on the Justin Sun-owned Poloniex, resulting in a loss of $122 million.

Popular Exploitation Methods Among Hackers

The report sheds light on the most prevalent exploitation methods. Access control exploits were the most damaging, contributing to losses exceeding $852 million across 29 instances. These exploits take advantage of weaknesses in smart contracts or platform permissions. Flash-loan attacks and exit scams also led to substantial losses, with the former accounting for $275 million over 36 cases and the latter for $136 million across 263 cases.

Conclusion: The Continuous Battle for Security

The De.Fi report paints a comprehensive picture of the crypto landscape of 2023, emphasizing the industry’s ongoing battle against security threats. Despite significant strides in enhancing security measures, the evolving nature of crypto attacks underscores the need for constant vigilance and proactive measures to safeguard user assets and maintain the integrity of the broader cryptocurrency ecosystem.

As released by Coinpedia’s Yearly crypto hack report, this analysis of cyber threats and security breaches encapsulates the nuances, trends, and lessons learned from the industry’s experiences. It serves as a crucial resource for prioritizing security in decentralized finance and offers insights for future improvements.

Blockchain infrastructure is an important facility that enables the smooth running of networks in Blockchain technology. A Blockchain network is a decentralized technology, which means no government authority controls how the system works. Therefore, Blockchain infrastructure enables institutions with decentralized applications to eliminate the use of third parties and centralized authority to access services or run the system.

Blockchain infrastructure ensures the effective running of Blockchain technology, it maintains and provides Blockchain technology with the infrastructure that is needed to operate and ruin the Blockchain system.

Deploying Blockchain infrastructure is therefore much more important to the system, the running of Blockchain needs nodes to enhance the effective run of Blockchain technology. Nodes are used in Blockchain technology to verify transactions and distribute data and decentralized storage. Therefore, the implementation of an effective Blockchain infrastructure is necessary. 

Cryptocurrency is increasing, and investors and institutions are embracing this technology. Below is an article published by DroomDroom about how Crypto is transforming the financial sector.

Blockchain Infrastructure

Blockchain infrastructure is a component that facilitates better functionality of Blockchain technology, there are certain features like nodes, smart contracts, consensus mechanisms and wallets. Each of these Blockchain infrastructures is used in different parts, for example, smart contracts, it is a self-executing contract that are directly written in codes. There are challenges that Blockchain technology faces, so what are these challenges?

Web3 strives to facilitate ownership, privacy, and trust in the digital realm by overcoming the perils of centralization. We recommend the below article to understand more about Web3 infrastructure.

Challenges In Blockchain Infrastructure

In this section, we will be looking at some of the challenges that these infrastructures are facing. 

Scalability

Transaction and validation of blocks in Blockchain have increased. Recently, Blockchain technology has witnessed an increasing engagement in the network, but however, scalability has become a great issue for Blockchain. It takes a day or a few hours to create a node in Blockchain. Scalability is the ability of Blockchain technology to handle a vast amount of transactions, there are a huge number of transactions that happen in the Blockchain network. Scalability poses a threat in Blockchain infrastructure since it makes transaction and validation of Blocks slow and tedious. Additionally, when the number of transactions and validation are slow, an increase in cost happens in Blockchain infrastructure. 

Readers can read on about solutions to scalability and interoperability in the article below published by DroomDroom.

Privacy and Security 

Blockchain technology is increasingly raising concerns among investors and individuals alike. Blockchain supports transaction and validation of cryptocurrencies, but of late security has been a threat to individual’s assets. Security is one of the greatest concerns in Blockchain infrastructure, investors’ assets are in trouble due to scammers, hacks and theft. Blockchain infrastructure needs robust security measures, for instance, the vulnerability in smart contracts.

Smart contracts are self-executing contracts with the terms of agreement that are written directly in codes. However, smart contracts are vulnerable, this can lead to security breaches and financial losses. Moreover, privacy is also an issue pertaining to Blockchain infrastructure, transparency is necessary in Blockchain, especially during transactions, but once a transaction is made in Blockchain it is visible to all participants in Blockchain. This poses a threat to user’s data privacy. 

User Experience

Cryptocurrency and Blockchain technology are revolutionizing the financial industry and UX developers have a crucial responsibility in enhancing UX in Blockchain infrastructure. But, this poses a pivotal disadvantage in Blockchain infrastructure. Blockchain is complex and new users might find it challenging to invest in these digital coins.

For instance, a transaction is complex, sending and receiving crypto needs a high level of trust from the sender and recipient. Moreover, managing private keys is complex. There are two types of keys that are required to validate transactions: private keys and public keys. New users might find these challenging, storing these keys is hard and complex. Moreover, if these keys are lost, they cannot be replaced. This is an issue with Blockchain infrastructure. 

Regulations And Interoperability

Another problem facing Blockchain infrastructure is regulations, the Security Exchange Commission is a threat to Blockchain technology. Blockchain technology is however decentralized, which makes it hard to comply with the SEC regulation. Besides, Blockchain technology must comply with security measures in different regions. It becomes harder for Blockchain infrastructure to be decentralized while at the same time following centralized regulations. Additionally, interoperability has been a threat to Blockchain infrastructure, Blockchain is figuring out how to work and communicate together with different Blockchain networks. This poses a threat to Blockchain technology and Blockchain infrastructure. 

Below is an article published by DroomDroom on how the Security Exchange Commission is examining cryptocurrency and Blockchain.

Solutions To Blockchain Infrastructure

Scalability is a threat to Blockchain infra., achieving scalability is a primary solution in creating mass adaptation and faster huge transactions between users. Therefore there are various solutions to cubbing scalability. Foremost is sharding, sharding is the process of dividing Blocks into smaller parts called shards. Shards are easily manageable since they eliminate the dependency concerns about the speed of individual nodes during transactions. It catalyzes faster transactions during the huge amount of transactions in Blockchain technology. 

Moreover, improving security in the Blockchain network is another solution to Blockchain infrastructure. Security is a primary concern, and transparency during transactions are necessary. This ensures that user’s data are acquired by just any individual. Additionally, nodes are used to emphasize transactions, therefore nodes require efficient security so as not to be easily accessed by hackers and scammers.

Moreover, developers should emphasize end-to-end encryption, this provides double security in the Blockchain network. Providing two-factor authentication security will also ensure scammers and hackers are far away from an individual’s digital assets, two-factor authentication ensures if one of the private keys is lost, individuals have a backup key to get access to the digital asset.

🎙TECH TALK #1. CHALLENGES OF BLOCKCHAIN REAL-TIME DATA ANALYTICS AND THE RELATED INFRASTRUCTURE SOLUTIONS🎯The 1st #TechTalk episode is pleased to welcome @trava_finance and @ChainstackHQ experts.⏰Time: 11 AM UTC, 18th July 2022 📍Venue: TechFi Twitter Space pic.twitter.com/AmLgVyK0AN

— TechFi (@Techfi_Info) July 15, 2022

Conclusions

Blockchain infrastructure is necessary for effective functionality in Blockchain technology, but there are challenges to it. Developers however have come up with solutions to curb these troubles like scalability, security concerns and regulations. Ensuring security in Blockchain infrastructure will secure individual threats and Blockchain vulnerabilities.

In the same way, you keep your secret passwords, your seed phrase should be a string of words with all the keys that would open your cryptocurrency’s kingdom. Picture it as a magical wand that opens the virtual gateway to your cyber fortune.

Understanding the importance of the seed phrase and how it works will help you secure your wallet from being accessed by unwanted persons who may steal your digital assets. This article will highlight the importance of seed phrase in securing your crypto wallet

Blockchain course with MITA #Week43 📜✍👨‍🏫What is a SEED PHRASE? ⛓🔓A seed phrase is a cluster of random words generated by your crypto wallet when setting it up, which can be used to restore access to your funds. The phrases contain words drawn from a list of 2,048… pic.twitter.com/Z4sJtE0eEE

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How Do Seed Phrases Work?

Your seed phrase is the gatekeeper for your crypto wallet. When you create a crypto wallet, you essentially invoke an occult formula—a special set of words or seed phrases that becomes your private key. The phrase is more than just a string of mere words put together. It’s the one thing that can produce all the secret keys for you to acquire or move around with your digital treasures.

If you are a crypto newbie and don’t have knowledge of crypto wallets, don’t panic there is a detailed article on crypto wallets. Read this to learn more about wallets.

The seed phrase of a word is like a spell, and when combined, it acts as the cryptographic key of a wallet. It is the “ultimate” secret handshake with the blockchain. This is also called the sacred password. Simply by chanting it when trying to re-access your wallet when you lost your last internet-connected device, bam! Your digital possessions are brought back to life with the click of a mouse This would enable the people for whom this is meant to be helpful to access and utilize it without restrictions.

The seed phrase is simple yet secure. Dealing with such tough cryptographic keys is harder than memorizing only a few words. In addition, as a decentralized system, only you, the rightful spellcaster, have the magic codewords to open your crypto castle. Thus, in the charming universe of cryptocurrencies, seed phrases are the locks for the kingdom, the magic words that safeguard your virtual domain.

How To Generate Seed Phrase

When you create a new cryptocurrency wallet, the process typically involves the following steps:

Initialization

To start, install a new wallet for your desired cryptocurrency. When creating your wallet, a seed phrase will prompt you.

Randomness is Key

That’s what makes a secret phrase so magical. Sophisticated algorithms produce randomly generated sequences of words in wallets. Your wallet is dependent on this element of chance, and it must be there for it to function with maximum safety.

Word Selection

The most simple seed phrase has twelve to twenty-four words. The words that you use from a set dictionary called a “word list” are composed of ones and zeros that form part of your cryptographic key.

Write it Down

The wallet will show you your seed phrase as soon as it is created. You need to put it down somewhere safe. This purpose can often be handled using the many available physical backup sheets in different wallets.

Memorization (Optional)

Others who have a good photographic memory and prefer to learn by heart may opt to manually remember them. However, these have their fair share of risks, whereby failure to remember what you set translates to losing access to the funds.

Keep it Private

Guard your seed phrase as carefully as you would your most closely guarded secret. It is not meant for any other person; therefore, keep it safe. It is the key to your digital castle, and if someone happens to gain access to it, then you are practically in their captivity.

Be very careful with it, and you are now the master of your cryptocurrency kingdom.

What Is the Difference Between Seed Phrases and Private and Public Keys?

​​Seed Phrase

Regard it as magic itself; see it as a spellbook carrying the formulas for every single private or public key. It’s normally produced while setting up a crypto wallet. The sequence is a randomly generated string that works like a secret. Your ultimate backup is the seed phrase. You can generate your private keys again if, for example, you lose your device and then enter the seed phrase into a recovery system, thus restoring access to funds in the wallet that contains them.

Private Key

This is the special key that opens your treasury. It is an entry point for you to command the digital properties you own, hidden in the secret passageway. Cryptographic algorithms are used to derive the private key from the seed phrase.

The seed phrase is a sequence of random digits and letters. These are unattainable without their use, as it is difficult to predict them. Guard it with your life! If a person gets hold of your private key, he or she gains power over your funds. Do not tell anybody about it, and put it somewhere where nobody will find it.

Public Key

Similarly, just as the private key is your secret passage, the public key may be the address of your castle. It is what you give out to the world to seek finances. The public key, which is also calculated from the seed phrase but independently from the private key, possesses a mathematical connection with the latter.

Nevertheless, it’s designed in such a way that it allows open sharing without compromising its confidentiality. For you to be able to engage in transactions, however, you have to share the public key, while the private key is truly a keeper. However, no matter how many people know about your public key, they will not be able to do much unless they have the private key as well.

Droomdroom has a detailed article that explains the difference between public and private keys to the core, you can read it to understand more about the keys.

How To Access An Account With a Seed Phrase

Using it as access to the account is like chanting spells from ancient times to enter the door leading to magic. Here’s a step-by-step guide:

Have Your Seed Phrase Ready

Make sure that you write it on a piece of paper or somewhere safe from theft.

Download a Compatible Wallet

Ensure you get a cryptocurrency wallet that works with your seed phrase’s coin. It is interesting to note that there are many kinds of wallets, each one designed to deal with specific kinds of cryptocurrencies.

Install and Set Up the Wallet

Install a wallet program on your device. Configure your wallet according to its instructions. There will be an opportunity to restore or recover a wallet through a seed phrase when setting up.

Select “Restore” or “Recover” Option

When prompted for an action, select “restore” or “recover wallet”. This means there are still seeds in your seed phrase.

Enter the Seed Phrase

Put them down in the same order as you received them for the seed phrase. Pay attention to the order and spelling.

Create a New Password (Optional)

You will also be asked in some cases to create a new password to provide extra security. Set up any other security features according to the wallet’s instructions.

There are other ways of keeping your digital assets safe. You can read this article to learn more.

Wallet Initialization

When a valid seed phrase is input along with other requisite information, the wallet goes live and synchronizes with the blockchain for account retrieval.

Access Your Funds

Congratulations! Your wallet has been restored, and you can now withdraw. The app provides a glimpse into checking and making transactions, along with managing your digital assets.

Just like this, always make sure to safeguard your seed phrase, for it acts as your final key and should never be revealed to anyone else. Therefore, giving out the seed phrase gives the other person the power to control your digital wallet.

Advantages of the Seed Phrase

The seed phrase is like a guardian spell that comes with a host of advantages in the realm of cryptocurrency:

Ease of Backup

Contrary to handling complicated cryptographic ones, a seed phrase comprises simple, comprehensible, mnemonic words. This is readily transcribable, easily stored, and can be kept safe.

Recovery and Accessibility

It is regarded as safe in case you lose your device or wallet. You can effortlessly restore and reclaim your money with the help of recreated personal keys.

Simplicity for Users

A seed phrase is simple for users without much knowledge about cryptography, ensuring that they easily store and control their digital assets.

Compatibility Across Wallets

Most wallets and services support a specific cryptocurrency. Therefore, you would be able to use the same seed phrase to recover your wallet on any of the different compatible platforms.

By utilizing blockchain technology, crypto wallets can communicate with each other thus making it easier for users to use different blockchain networks and can use their assets. Read this article to learn more.

Human-Readable Security

Additionally, using certain words in a seed phrase improves security by ensuring that it is protected against human errors. A short sequence of random characters makes it harder for users to lose and mistype a word compared to a single word.

Memorization (Optional)

Although not advisable for all, this option to remember the seed phase offers an extra shield to individuals who possess the ability. Beware, as failure to recall the phrase will render you helpless.

Secure Key Generation

With the use of algorithms such as these, a unique pair of private and public keys is produced from the seed phrase. This guarantees a secured and deterministic key generation process.

Decentralized Security

It is you who should own this seed phrase. There is no centralized server on which it is stored, thus minimizing the chances of one-point failure. It is your cryptographic destiny under your direct control.

In short, it remains the most user-friendly, most secure, and all-around useful approach to protecting your cryptographic assets. Cryptographically secure and user-friendly are two major qualities of this combination.

Disadvantages of the Seed Phrase

While the seed phrase is a powerful and widely adopted method for securing cryptocurrency wallets, it’s not without its potential drawbacks:

Human Error

Being humans, we do commit errors while keying in or writing the seed phrases. One error in the wording sequence could cause you to lose access to your money.

Physical Vulnerability

If you get your physical seed phrase missing, destroyed, or fallen into inappropriate hands, then you are likely to lose your cryptocurrency accounts.

Limited Recovery Options

In most cases, losing one’s original copy and also the capacity to recollect the seed phrase makes it difficult to find a way forward. Wallet providers normally highlight to a user the personal security of a seed phrase.

Phishing Risks

The malicious actors can also be involved in phishing to deceive the users of the wallets into giving out their seed phrases. However, it is important to remain cautious and only input your phrase into authorized wallet recovery procedures.

You are recommended to read this article to know more about phishing scams if you are a crypto newbie.

Centralization of Seed Phrase Storage

Some individuals may prefer keeping their phrases at a single point, like a virtual space. However, this creates a single point of failure since the service can be attacked.

Dependence on Wallet Providers

It is important to note that the security of the seed phrase also depends on the provider’s wallet security practices. When you hear it has been compromised, your device could be at risk of being hacked by your provider if they also experience a breach.

Conclusion

The seed phrase is like a lighthouse for this pathless land that provides simplicity along with its recovery options and securely decentralized manner. It is easy to use, compatible with other wallets, and easily remembered, which is quite convenient for all cryptocurrency owners.

However, amid all of this, there are some strands of caution concerning the thread of security. The seed phrase must be guarded against human error, physical loss, and the continuous threat of phishing. Respect deserves this because all these “ordinary” words have an extraordinary power to control and secure all your crypto wealth.

Ultimately, the seed phrase acts as a guardian and gatekeeper of crypto’s realms—this magical word unlocks the world’s winnings in cryptocurrency. Respect and care for it, and it will protect your digital rule in decentralized wonders nowadays.

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The post Distributed Ledger appeared first on Coinpedia Fintech News

Distributed ledgers utilize nodes, and independent computers, to record and synchronize transactions on an electronic ledger.

What is Distributed Ledger?

A distributеd lеdgеr is a sharеd and synchronizеd databasе accеssiblе across multiplе sitеs, institutions, or gеographiеs, allowing transactions to havе public “witnеssеs” and providing еnhancеd sеcurity against cybеr attacks and fraud. Hеrе’s a brеakdown of kеy points:

Kеy Charactеristics of Distributеd Lеdgеrs:

1. Consеnsual Sharing: It is a databasе sharеd and synchronizеd across multiplе participants.

2. Dеcеntralization: It еliminatеs thе nееd for a cеntral authority to validatе transactions.

3. Sеcurity: Information storеd on distributеd lеdgеrs is cryptographically sеcurеd and immutablе.

4. Transparеncy: It offеrs еxtеnsivе transparеncy and is inhеrеntly difficult to manipulatе.

5. Rеduction of Opеrational Inеfficiеnciеs: Distributеd lеdgеrs rеducе opеrational inеfficiеnciеs, spееd up transaction procеssing, and arе automatеd.

6. Rеducеd Costs: Thеy lowеr ovеrall costs for еntitiеs that usе thеm.

7. Audit Trail: Distributеd lеdgеrs providе an еasy-to-follow audit trail for accountants, rеducing thе risk of fraud.

8. Environmеntally Friеndly: Thе rеduction in papеr usagе bеnеfits thе еnvironmеnt.

Usе Casеs:

Distributеd lеdgеr tеchnology can rеvolutionizе various sеctors, including financе, music and еntеrtainmеnt, diamond and prеcious assеts, artwork, and supply chains. It has thе potеntial to transform how govеrnmеnts, institutions, and corporations handlе procеssеs likе tax collеction, passport issuancе, land rеgistriеs, and morе.