Evaluation of the safety of P2P cryptocurrency platforms
The rise of peer-to-peer cryptocurrency platforms (P2P) has revolutionized the way in which individuals and companies exchange the value without relying on agents such as banks. With these platforms, users can create, send and receive cryptocurrencies directly with each other without a central authority checking the transactions. As with any financial transaction, however, security is an important problem for P2P cryptocurrency platforms. In this article we will evaluate the security of different P2P cryptocurrency platforms and highlight your strengths and weaknesses.
What makes a P2P cryptocurrency platform safe?
A secure P2P cryptocurrency platform should have several important properties:
- Distributed Ledger Technology : A decentralized general book like Blockchain ensures that all transactions are recorded on several nodes, so it is practically impossible to change or manipulate the data.
- Consistent mechanisms : The use of consensus salgorithms such as proof-of-work (Pow) or Proof-of-Stake (POS) helps with the validation and checking of transactions and prevent a single company from controling the network.
- Authentication and authorization : Effective authentication and authorization systems ensure that users can only access their own means and data, which reduces the risk of non-authorized access.
- Data encryption : The use of strong encryption methods protects user data from intercepting or listening.
Evaluation of P2P cryptocurrency platforms
Let’s take a closer look at several popular P2P cryptocurrency platforms to evaluate your security:
1.
Bitcoin (BTC)
* Security: high
* Consistent mechanism: Proof of work (pow)
* Ledger technology: Decentralized and blockchain-based
* Authentication and authorization:
Limited, the user check requires
* Data encryption: strong, using AES-256-bit encryption
The security of Bitcoin is unprecedented due to its decentralized and unchangeable nature. However, the limited authentication and authorization system makes it vulnerable to non-authorized access.
2.
Ethereum (ETH)
* Security: high
* Consistent mechanism: Proof of work (pow)
* Ledger technology: Decentralized and blockchain-based
* Authentication and authorization: Limited, the user check requires
* Data encryption: strong, using AES-256-bit encryption
Ethereum’s security is equally impressive, with a strong consensus mechanism and robust data encryption. However, the limited authentication and authorization system leaves space for exploitation.
3.
Litecoin (LTC)
* Safety: Medium
* Consistent mechanism: Proof of work (pow)
* Ledger technology: Decentralized and blockchain-based
* Authentication and authorization: Limited, the user check requires
* Data encryption: weak, using the SHA-256-bit encryption
The security of Litecoin is a little weaker than Bitcoin, but his light consensus algorithm makes it faster and more scalable. The limited authentication and authorization system raises concerns about unauthorized access.
4.
EOS
* Safety: Medium
* Consistent mechanism: Proof of work (pow)
* Ledger technology: Decentralized and blockchain-based
* Authentication and authorization: Limited, the user check requires
* Data encryption: weak, using AES-128-bit encryption
The safety of EOS is a little weaker than Ethereum with a limited consensus algorithm and less robust data encryption. The limited authentication and authorization system makes it vulnerable to unauthorized access.
5.
