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Risk on Crypto Currencies

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Risk on cryptocurrencies by Dr Kaleem Usmani, director of the Mauritius CERT

Published in: Technology
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Risk on Crypto Currencies

  1. 1. I Security Concerns and Risk related to Cryptocurrencies Dr. Kaleem Usmani
  2. 2. Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative. - Nassim Taleb
  3. 3. A Cryptocurrency is a digital currency that is created through mathematical engineering (algorithm). It is designed to be open, anonymous, secure, fast and bypasses traditional financial structures.
  4. 4. Bitcoin, created in 2009, was the world’s first Cryptocurrency. Since then, many new Cryptocurrencies (also known as Altcoins) have been introduced.
  5. 5. ADVANTAGES OF CRYPTOCURRENCY OVER TRADITIONAL MONEY VS Traditional
  6. 6. Digital currency maintains its users complete anonymity. When you make a purchase with traditional money your personal information is attached to each and every transaction which can be used to track you and take note of your purchases. But cryptocurrency transactions carry no personal information.
  7. 7. Cryptocurrencies aren't directly linked to the laws, rules or regulations of any government, corporation or bank. Hence, the interest rates, fees and surcharges that you may have to pay on your bank account or credit card do not effect your transactions or cryptocurrency in any manner.
  8. 8. How does cryptocurrencies work ? The Mining Process SERVERS GENERATE COMPLEX MATH PROBLEMS MINERS GENERATE SOLUTION TO RELEASE XCOINS
  9. 9. How to use Cryptocurrencies SET UP WALLET BY DOWNLOADING SOFTWARE ON COMPUTER OR PHONE THIS SOFTWARE GIVES YOU A UNIQUE AND SECURE IDENTIFICATION CODE FOR BEING IDENTIFIED IN THE NETWORK. XVhgXFFXSCS456FGGCF6ETCF76576 YOU CAN BUY XCOINS WITH OTHER STANDARD CURRIENCIES FROM OTHER USERS OR REGISTERED EXCHANGES. THE FUND IS ADDED TO WALLET INSTANTLY. THE XCOIN NETWORK AUTHENTICATES THE TRANSACTION BY ADDING IT IN PREVIOUS BLOCK CHAIN AND MAINTAINS INTEGRITY. YOU CAN ALSO SEND PAYMENTS TO OTHER ADDRESSES BY USING THE SECURE SOFTWARE EASILY.
  10. 10. Y Y Y Y Role of Blockchain in Xcoin mining USER ‘A’ SENDS FUND TO USER ‘B’ THE TRANSACTION IS CONVERTED TO A ‘BLOCK’ THE TRANSACTION IS BROADCASTED ON THE NETWORK FOR VALIDATION THIS BLOCK IS ADDED TO THE EARLIER NON REVERSIBLE PROCESS CHAIN OF BLOCKFINALLY USER ‘B’ RECIEVES FUNDS FROM USER ‘A’
  11. 11. Selfish Mining— This allows a sufficient size pool of “selfish miners” to gain revenue larger than its ratio of mining power, which forces “honest miners” to spend their cycles on blocks that won’t make it to the blockchain. Double Spending— This allows an attacker to successfully make more than one transaction using a single coin, which invalidates the “honest” transaction. Security Concerns with Cryptocurrencies
  12. 12. Wallet Software/Distributed Denials of Service Attacks (DDoS)—“Wallets” are client-side applications used to manage Bitcoins and transactions of Bitcoins from/to the client and can be accessed online or via download. Online wallets are more vulnerable to DDoS attacks since they need encryption and are backed off-line. Acquiring Greater Than 50% Computing Power— This is when any conspiring user acquires more than 50% of the computing power in mining process, which can also lead to other attacks. Security Concerns with Cryptocurrencies
  13. 13. Timejacking— This happens when an attacker announces an inaccurate timestamp while connecting to a node for a transaction, altering the network time counter and deceiving the node, which can cause double-spending. Security Concerns with Cryptocurrencies
  14. 14. Thank You

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