Due to all of the negativity surrounding Bitcoin exchanges over the past few days, other exchange platforms are doing their best to reassure customers regarding the safety of their funds. Huobi, one of the biggest Chinese Bitcoin exchanges, have issued an official statement regarding how they handle security in light of the Bitstamp incident.
“Huobi (including BitYes and BitVC, which are separate platforms operated by the same security team and wallet system) follows the common industry practice of keeping the vast majority of its users’ coins in secure cold storage. For the operational hot wallet, which is used for processing user deposits and withdrawals, Huobi has independently developed its own three-tier security system which includes multi-signature addresses and real-time monitoring and anomaly detection mechanisms.”
Granted, the Bitstamp incident is far small in scale than the previous “major exchange disaster” in the form of Mt. Gox, but it’s still not doing any favors for Bitcoin’s image, which is already facing adversity on a daily basis. It is a good thing to see exchanges issue an official statement regarding their own security protocols, which can in turn be used for “positive press” where Bitcoin is concerned.
While it is not uncommon for cryptocurrency wallets to have minor glitches or hiccups, handling this type of events is a key factor in resolving the matter. Having a “laissez-faire” attitude will harm your company in the long run, and it is important for exchanges to execute security check several times a day in order to maintain system stability.
Up to this date, Huobi remains free of any security incidents. That fact is rather astonishing when you take into consideration how Huobi once was the world’s biggest Bitcoin exchange by trading volume. We can only hope that no more exchanges face any real security threats for many years to come, but given the potential financial gain from breaching these platforms, that seems like idle hope.
It will be pertinent for security experts to keep developing security countermeasures as hackers grow more sophisticated and stronger. 2015 Will be a very important year for Bitcoin and digital currency altogether, and winning the security game will be a key element to making 2015 a successful year. Otherwise, the consequences could be quite dire.