According to the recent research the cryptocurrency exchanges may have security issues. As the use of cryptocurrency and its worldwide adoption replaced the intermediates in the banking system thus increasing the security and ease of transaction. However, the result from new research have shown that all thses cryptocurrency exchanges are not so secure afterall. While the world is attracted to the idea of the decentralised model but many of this crypto exchanges have failed to provide even the most basic security measure such as enforcing strong passwords.
According to new research, all the cryptocurrency exchanges are not ideal as they leave their users vulnerable to attacks as the research has found that 54% of all the cryptocurrency exchanges have poor security in at least one area.
While few of the top cryptocurrency exchanges prove, they are up to the standard when it comes to security measures. However, the crypto has been influenced by the hacks as well frequently. A report from ICOrating.com has shown the stretch of the lax security practices that suffuse many exchanges even some of the top-tier performers. Some of the recent breaches include Mt Gox and previous month’s Zaif Hack.
The research included investigation of 100 exchanges whose daily volume exceeded $1 million. The study looked for things such as a registry lock, preventing unauthorised changes to the domain registry, and DNSSEC, to prevent DNS cache poisoning, as these have been the frequent areas prone to attack. The research concluded that only 2% of the exchanges use registry lock, 10% of them use DNSSEC, and overall only 4% of the exchanges use best practice in 4 out of 5 of these areas.
The research also analysed only 41% of exchanges allow password with less than eight symbols and 37% allow alphanumeric passwords. Even some of these validate the account without email verification. Out of these only, 46% of these exchanges meet all four parameters, and just 4% were with a clear security structure.
The ICOrating.com concluded the results of the research by publishing a table rating based on their overall security score. While no exchanges managed to clear all the security parameters, however, Coinbase proved to be most promising having scored 89/100 followed by Kraken at 80 after that BitMEX and Gopax at the third together. The top secure exchanges list also included Cobinhood, Ethfinex, Bittrex and Binance. The bottom of the list was secured by Okcoin.cn with 15/100 with Mercatox and the negatively renowned Zaif with 29/100. The analysis proves that there is a lot that the exchanges need to improve on even if these show to be the most secure model having the blockchain technology basis.