Threats and vulnerabilities in Bitcoin security

Z390

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Quote from: NotATether on July 18, 2023, 07:58:18 AM

Quote from: Z390 on July 18, 2023, 07:31:00 AM

1. Try losing your private keys, and let's see what happen, if this happened once I bet it won't happen again, you will learn to keep your private keys more secure next time, we all make mistakes and we learn from it, there are ways to keep em safe and if you lost em it's your fault.

You should never have to even see your private keys, that's why they are called private in the first place. The new constructs for creating wallets, such as seed phrases and wallets which can be derived from (among other resources) a username and password are what you should be keeping note of and hiding. You shouldn't ever have to touch a private key for any reason.

Acknowledge, and yet some crypto wallets still give access to private keys after creating your first wallet, recovery seed is available and so is private key.

DaCryptoRaccoon

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OGRaccoon

Farming posts..

Reported.

Surprised to see a lot of OG accounts replying to this when it's clear this is a chat GPT response.

Still farming posts I see lads. You know who you are..

Jegileman

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

2.Exchange Vulnerabilities
Despite being used as an avenue for trading bitcoins, cryptocurrency exchanges are susceptible to attacks from hackers. User funds may be lost as a result of breaches. The solution: Exchanges should put strong security measures in place, such as cold storage for individual funds, regular security examinations, and powerful authentication protocols. Users ought to select trading platforms with a solid reputation for security.

Selecting reputable exchanges for trading bitcoin is still not a guarantee that you’ll never lost your funds or be susceptible to hacking as the case may be. Using reputable exchange will only decrease the tendency of losing your funds but it’s not guaranteed to be saved there forever. The crash of FTX should serve as an example to this. Only leave your coins in exchanges when trading, after that, remove all your money to a decentralised wallet for maximum safety and complete ownership of funds.

Fiatless

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

3.Regulatory and Legal Concerns
Problem: The regulatory environment in which Bitcoin operates is complicated. Modifications to regulations and legal ambiguities may have an effect on adoption and security. Taking on the problem: Cooperating with authorities, encouraging ethical behavior, and abiding by the law can all contribute to making Bitcoin more secure. Collaboration among business leaders, government officials, and law enforcers can also improve security procedures.

And many more are still available.

The security of your Bitcoin depends more on you than any other person, institution, or government when you are using a decentralized wallet. Government policy has more impact on centralized platforms than a decentralized one. The government has been active in the tracking and recovery of hacked or stolen Bitcoin but it has limited the main thrust of Bitcoin which is privacy. Bitcoin is a decentralized current that should not be under the control of any government, so I doubt if any national policies will help improve the security of the Bitcoin system. People that need government security are those that keep their funds in centralized exchanges.

NotATether

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Quote from: Z390 on July 18, 2023, 07:31:00 AM

1. Try losing your private keys, and let's see what happen, if this happened once I bet it won't happen again, you will learn to keep your private keys more secure next time, we all make mistakes and we learn from it, there are ways to keep em safe and if you lost em it's your fault.

You should never have to even see your private keys, that's why they are called private in the first place. The new constructs for creating wallets, such as seed phrases and wallets which can be derived from (among other resources) a username and password are what you should be keeping note of and hiding. You shouldn't ever have to touch a private key for any reason.

Z390

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1. Try losing your private keys, and let's see what happen, if this happened once I bet it won't happen again, you will learn to keep your private keys more secure next time, we all make mistakes and we learn from it, there are ways to keep em safe and if you lost em it's your fault.

2. Decentralized exchanges are increasing in numbers, you don't have to send your Bitcoin to any CEX to trade, and if you are a trader make sure you move your Bitcoin out after every successful trade back into your wallet.

3. Bitcoin is fully decentralized, if you understand what this means you won't even think about the possibility of any regulation, if anything is going to get regulated, it will be crypto exchanges or centralized crypto projects.

All these can be avoided and the ball is in the owner's court, I don't see any of these as a threat for those who understand it, this is a threat for newbies who are new to crypto in general, they need to know about all these so that they can avoid mistakes.

sunsilk

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

1.Private Key Management
The protected management of private keys, which are used to access and transfer funds, is a challenge for Bitcoin security. Bitcoins may be lost if private keys are misplaced, taken, or compromised. Individuals are advised to use secure procedures for backing up their private keys and protecting them as well. Security can be improved with hardware wallets, private offline storage options, and strong control over passwords.

IMHO, this should be the first thing that newbies have to learn. On how to secure their private keys because many of them don't know how to properly keep it.

Just like me in the past who's ignorant about the importance of where we're storing it, the mistake that many does is like putting it on their emails and other cloud storages, google spreadsheets, etc.

That's a big mistake.

While the suggestion is true, owning a hardware wallet is the best thing to have.

mk4

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What you're describing isn't threats and vulnerabilities in Bitcoin's security, but instead it's more of the risks and potential issues of owning bitcoin. If you say "Threats and vulnerabilities in Bitcoin security", you're describing more of the security in the protocol side of things.

Despairo

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Quote from: MusaMohamed on July 18, 2023, 01:35:31 AM

People can set up their cold wallets with non custodial wallet, free. Buying a wallet like hardware wallet cost you but it is not related to Bitcoin fee. They don't pay Bitcoin fee to buy a hardware wallet or a cold wallet.

@OP talk if the exchange need to set up cold storage for individual customer, which mean each cold storage for each customer. Talking about anyone can set up their own cold wallet with non custodial wallet, do you think there's no device used? you need a device, either it's old or new one.

It's better for you to read my post once again, I'm not saying paying Bitcoin fee to buy a hardware wallet, but people who leave their money on a centralized exchange is to prevent from withdrawal fee. They want to make sure they're spend very minimum money even though they need to take a big risk.

noorman0

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

1.Private Key Management
The protected management of private keys, which are used to access and transfer funds, is a challenge for Bitcoin security. Bitcoins may be lost if private keys are misplaced, taken, or compromised. Individuals are advised to use secure procedures for backing up their private keys and protecting them as well. Security can be improved with hardware wallets, private offline storage options, and strong control over passwords.

Privatekey management also pays attention not only to the keeping method, but also when you use the privatekey itself such as copying, entering, and where (wallet platform) you import it.
There are also silly user errors like this case, which can lead to stolen bitcoins.

MusaMohamed

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

Exchanges should put strong security measures in place, such as cold storage for individual funds, regular security examinations, and powerful authentication protocols.

Exchanges move customer funds, deposits from hot wallets to cold wallets. They do that to secure their exchange treasury and first they care about their exchange, not their customers. If they are good exchanges, customer funds will be safe. However, if they are scam exchanges, they will run with coins in cold wallets.

Quote from: Despairo on July 18, 2023, 01:27:43 AM

Cold storage for individual funds? will every customer willing to give $100 for the exchange? nah, the reason of why most of people use centralized exchange is they don't want to lose any money, if they can't afford to lose for paying more in Bitcoin fee, how it's possible they willing to spend $100?

I am confusing.

People can set up their cold wallets with non custodial wallet, free. Buying a wallet like hardware wallet cost you but it is not related to Bitcoin fee. They don't pay Bitcoin fee to buy a hardware wallet or a cold wallet.

Creating a cold storage wallet in Electrum

Despairo

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

Exchanges should put strong security measures in place, such as cold storage for individual funds, regular security examinations, and powerful authentication protocols.

Taking on the problem: Cooperating with authorities, encouraging ethical behavior, and abiding by the law can all contribute to making Bitcoin more secure. Collaboration among business leaders, government officials, and law enforcers can also improve security procedures.

Cold storage for individual funds? will every customer willing to give $100 for the exchange? nah, the reason of why most of people use centralized exchange is they don't want to lose any money, if they can't afford to lose for paying more in Bitcoin fee, how it's possible they willing to spend $100?

There's no relation between government and Bitcoin security, actually the more government intervention toward Bitcoin, it will increase the threat in Bitcoin security as privacy is more exposed.

zaim7413

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Threats and vulnerabilities in Bitcoin security lie in each person's personal how securely store the private key and where you store Bitcoin. I did not find a strong threat to the security of Bitcoin on all the points listed above, Private Key Management, Exchange Vulnerabilities and Regulatory and Legal Concerns will not make investors lose or have a major impact on the Bitcoin network.
As long as you keep your private key safe and don't trust a wallet from an exchange to store assets, the Bitcoin you hold will be completely safe, regarding Regulatory and Legal Concerns not having a major impact on the Bitcoin you own.

MusaMohamed

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If you don't want to use centralized exchange accounts to store your bitcoin, which you should not do, you must use non custodial wallets. When you do it, you must have basic knowledge about wallet security, device security to store your bitcoins safely on your devices.

Security checklist, generally for cryptocurrencies, not only Bitcoin.
Bitcoin security and resources
Securing your wallets

Findingnemo

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I guess it will be appropriate if you edit the title as Security concerns" instead of vulnerabilities since all those points are mentioning about keeping the bitcoin secure nothing about the bitcoin network itself which summons that the Bitcoin network is not vulnerable since

Bitcoin's security model is built on decentralized consensus and cryptographic principles.
network's resistance comes from the collective computational power of miners and the sophisticated cryptographic algorithms that secure transactions.

Bitcoin_Arena

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

3.Regulatory and Legal Concerns
Problem: The regulatory environment in which Bitcoin operates is complicated. Modifications to regulations and legal ambiguities may have an effect on adoption and security. Taking on the problem: Cooperating with authorities, encouraging ethical behavior, and abiding by the law can all contribute to making Bitcoin more secure. Collaboration among business leaders, government officials, and law enforcers can also improve security procedures.

Security of Bitcoin and collaboration with government officials and law enforcers in one sentence? Come on mate
I hope you are aware about how the Governments dislike a decentralized financial system that takes away people's finances out of their financial control grip.

What collaboration is there anyway if Governments have always attempted to ban and outlaw use and trading of Bitcoins in some countries?

Nwada001

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Quote from: Baki202 on July 17, 2023, 02:54:20 PM

~Snip~

You should try and update the title of your thread if you are the type to revisit threads. You should have learned from the response above that your threats are not Bitcoin issues but issues regarding wallet management by the holder. When I saw the title of your post, I was expecting to see some form of bug being discovered in the Bitcoin network that hackers could use to penetrate the system and do some exploitation, but it was a total different thing.

Upgrade00

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Misplacing your private keys or storing your bitcoins in an exchange that can get hacked is not a threat or a vulnerability, it is rather a slip up that the holder of the private keys can do and lose their bitcoins as a result.

The Bitcoin network is secure, but we have to do our but to keep our keys secure.

Dunamisx

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We all have our bitcoin to be in our possession all things being equal not until we failed to realize this and went ahead to engage doing the wrong things and expect the right, it is also believed that we should know how the differentiate between want we want and what we were been offered as a means to store our bitcoin, there are many types of wallets and their categories as well, it's not the bitcoin wallets that has this vulnerability but the decision we made in the types of wallets to use also determine, you cannot use an online wallet and expect same outcome from those that go perfectly decentralized.

BitcoinPanther

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The given threat and vulnerabilities are not on the Bitcoin network but rather on the user side issues. This simply show that the Bitcoin network is really secure but the users often face different challenges to secure their wallets and Bitcoin. If the users is well versed on securing their Bitcoin wallet then I do not think that this will be a threat or vulnerabilities issue anymore.

The list number 3 (Regulatory and Legal Concerns) does not involved Bitcoin network at all but rather it is an external factor that has an effect on the adoption of Bitcoin. This might be a threat on the economics of Bitcoin but I do not think that government regulation will have a threat on the Bitcoin network at all.

Topic: Threats and vulnerabilities in Bitcoin security (Read 195 times)