By Jonas Nilsson, Head of Product Management, Fingerprinting
The use of cryptocurrencies is expanding and diversifying. Once an open secret for some tech-savvy users, many are now drawn to the freedom of trading BTC, ETH, and numerous other altcoins and tokens.
Cryptocurrencies are typically associated with the (decentralized) movement of large, high-value transactions, making them attractive targets for attackers. Work has been done to protect against inherent vulnerabilities such as: crypto clippingbut questions still arise as to how to store this digital value securely to prevent unauthorized access.
Exchange and wallet limits
Exchanges, hot wallets, and cold wallets, the three main methods of storing cryptocurrencies, are strings of letters and numbers (such as passwords) that allow users to access and manage their cryptocurrency funds. It is protected with a private key.
Most people are aware that hot wallets and exchanges are connected to the internet, and since private key storage is controlled by the exchange, they are susceptible to unauthorized access and cyberattacks. Hot wallets remain connected to the internet, but are self-managed, meaning only the owner owns the private keys.Cold wallets are generally considered the most secure of these options as they are isolated from the internet When Self-managing. But what if someone loses or forgets their private key? It’s nearly impossible to regain access. Even worse, what if your credentials are compromised, such as through a phishing scam or data hack?
Last December, hackers were able to exfiltrate data $196 million Steal cryptocurrencies from crypto exchanges by stealing private keys that opened two hot wallets. Compromised private keys are all too common. Massive data breaches and malware attacks To The Guesswork of Blockchain Thieves.
Can biometrics help keep cryptocurrencies on ice?
Biometrics have changed the way people access and authenticate themselves in many aspects of their daily lives, from unlocking their phones to ordering products with Amazon’s Alexa. Using unique physical characteristics to authenticate users increases security without sacrificing convenience in an increasingly connected world. Now, as cryptocurrencies grow in popularity, there is an opportunity to consider how adopting biometrics on a large scale can have a positive impact on the crypto ecosystem.
cryptocurrencies like smart home or smart workplacecan take advantage of the security and convenience provided by biometric authentication at access points. For the user, biometrics allows them to move away from relying on her PIN and password, which are as easily compromised in the crypto ecosystem as anywhere else.
From a hardware perspective, reinventing the wheel is not necessary when considering how to integrate biometrics and cryptocurrencies. Instead, device manufacturers Logical access progress Introduce biometrics to hot and cold wallet combinations. It’s worth noting that biometric authentication is already in widespread use, allowing users to log into crypto exchange apps.
The key to securing access to cryptocurrencies
The move to bring biometrics into crypto wallets is already underway with some of the biggest names in the ecosystem, allowing the technology to strike the right balance between security and convenience for crypto HODLERS. Expanding.
The adoption of biometrics is diversified and the technology is widely used in the payment and access industry to enhance security without compromising convenience. And if security and convenience remain key priorities, the use cases will continue to grow.
The industry is learning and evolving as new use cases emerge. This brings innovation in sensor size, shape, and coloring, giving device makers more design freedom. Visa, Mastercard, Fido, Windows Hello, etc., help ensure a high level of effectiveness. And the development of algorithms such as anti-spoofing, single-chip functionality, and processing speed continues to make technology accessible to all organizations.
Biometrics brings stronger authentication to cryptocurrency storage, helping OEMs and service providers deliver a robust and consistent user experience and enhance security.
About the author
Jonas Nilsson is Head of Product Management. fingerprint cardFingerprinting enables secure, unified access control that is portable for a variety of uses, from shared PC logons and VPN access to restricted spaces across physical and digital properties. Learn more about the technology that website.
Disclaimer: Biometric Update Industry Insights is contributed content. The views expressed in this post are those of the author and do not necessarily reflect his Biometric Update views.