While the existing crypto-sphere is already plagued by issues concerning scalability, financial privacy is fast shaping us yet another prerequisite to sizeable investments. Individuals are constantly emphasizing on anonymous cryptocurrencies courtesy the flexibilities on offer. That said, we believe anonymity will soon replace other versions of virtual currencies provided the existing security challenges are addressed, almost immediately.
Expert’s Take on Anonymous Cryptocurrencies
Although, the entire concept of anonymity revolves around privacy and security of the miners and investors, it is only a matter of time that the details are revealed due to the extensive usage of technological prowess. The reason why experts believe that the security challenges and loopholes will get better out of the anonymous entities is that majority of concerned transactions are initiated over the dark web. Moreover, there are several law enforcements and security regulations on the prowl which are steadily divulging the confidential details of the anonymous miners and crypto associates.
At present, anonymous cryptocurrencies are enjoying all the limelight as they prioritize privacy more than anything else. While majority of these entities use on-chain and advanced cryptographic approaches for safeguarding user confidentiality, there are certain loopholes which are being leveraged by the cybercriminals for improving the profitability associated with Cryptojacking.
One advantage of anonymous cryptocurrencies is that tracing them isn’t practically impossible, at this point in time. This feature, however, is increasingly being used by the hackers as a go-to form of ransomware payouts. At first, the cybercriminals hack into the devices and then start mining anonymous coins for avoiding detection. Last but not the least; anonymity doesn’t require users to have a stable computing framework like the ones used for mining Bitcoin. Instead, even personal computers, spread across the globe, can be used for mining anonymous cryptocurrencies. This, involuntarily, gives birth to Cryptojacking as majority of the mining processes are initiated without the direct consent of the owners.
Security Challenge: Turning Computing Devices into Botnets
The first security challenge posed by anonymous cryptocurrencies is that hackers can easily turn the existing devices into botnets by running special programs. Cryptojacking, therefore, increases the number of mining pools; thereby amplifying the market capitalization of the concerned cryptocurrency.
Making Devices Vulnerable
Convoluting the Tracking Process
While this can be security challenge for some, there are certain individuals who prefer their mining processes to go unnoticed. However, anonymity poses certain kinds of threats where hackers create wallets for disguising fund movements. The likes of Monero; thereby, conceal locations, amounts and even the destinations.
Anonymity comes across as a double edged sword with intricacies outnumbering the benefits, at this point in time. Although, it’s safer to use anonymous cryptocurrencies for initiating day-to-day transactions, hackers can easily target this strategy for rendering the existing systems vulnerable to ransomware and malware-specific threats. Therefore, even if individuals and companies are investing in anonymity as an idea, it is advisable to work alongside a reliable security vendor, in case things don’t turn up as per expectations.
As an IT security partner for your business, Seqrite provides comprehensive security from advanced cyber threats. To know more