Crypto Foresight | CoinEx Protects Users’ Crypto Assets with its Innovative Tech Structure
The crypto world is fraught with both peril and opportunity, leading us to either heaven or hell — Lurking beneath the huge profits are unprecedented dangers. The history of the crypto market abounds with security breaches, covering the MT.Gox hack, three Binance hacks, the $11 million hack of Yearn (a yield farming platform), flash loan attacks targeting AlphaFinance that led to the loss of $37.5 million, and the loss of over $55 million suffered by bZx (a margin trading, borrowing, and lending protocol) due to the compromised private key. In the first half of 2021 alone, over $1.8 billion worth of crypto assets were stolen, involving 82 crypto hacks, most of which are security breaches at crypto exchanges.
As the crypto economy booms, the security of crypto assets has become a challenge facing all members of the crypto community.
CoinEx Protects Users’ Crypto Assets with its Innovative Tech Structure
Since its inception, CoinEx, a world-leading crypto exchange, has never suffered security breaches like hacking or downtime. As one of few exchanges suffering zero accident in the crypto space, it is well-reputed all over the world.
As a member of the crypto community, how could CoinEx stay safe and maintain a “zero-accident” record against the rampant crypto hackings?
Essentially, there are two reasons why trading platforms are hacked. Firstly, the platforms’ risk management technology and defense system suffer from security vulnerabilities, which are used by hackers to break into their systems and steal cryptos. Secondly, the internal components of the trading platforms are inadequate, which means their systems cannot withstand “great pressures”. Therefore, users’ assets would be lost under strong “pressure hackings”.
Backed by a team of crypto veterans from all over the world, CoinEx has conducted in-depth studies of security problems specific to the crypto space and carefully analyzed the above two concerns. The exchange combined its crypto expertise with tech innovations and built a security strategy suited for itself.
Strategy 1: Improve the risk management technology and defense system
CoinEx has upgraded its risk management technology and defense system relying on a solid tech foundation. It has adopted innovative tech structures and a multi-layered defense system, featuring the isolation between cold wallets and hot wallets as well as multi-signature protection. On CoinEx, the encryption process differs according to different user scenarios, which fully ensures the security of users’ assets.
Strategy 2: Expand the tech moat
To ensure that the exchange could withstand “great pressures” at any time, CoinEx reached strategic cooperation with Hacken and conducted repeated functionality tests, penetration tests, and pressure tests. Meanwhile, it has also enhanced its security walls — CoinEx launched a global bug bounty program in collaboration with SlowMist Technology, with a prize pool of over 5,000 USDT. The program invites tech geeks from all over the world to brainstorm and improve CoinEx’s defense system in all respects and further expand the exchange’s tech moat.
The road to prominence: CoinEx sought breakthroughs amidst challenges and risks
As crypto technologies further advance, users’ demand for crypto trading is on the rise. It can be expected that more problems are on the way, and the top concern would be asset security. To fully protect users’ crypto assets, CoinEx has expanded the external tech moat and improved its internal tech structure. Thanks to such efforts, the exchange has achieved major breakthroughs in terms of the security concern of crypto assets, making it one of the few crypto exchanges with a “zero-accident” record in the world.
For the crypto exchange sector as a whole, CoinEx’s “zero-accident” record has demonstrated a new tech approach for addressing security concerns through its pressure tests conducted with the help of Hacken and the bug bounty program cohosted with SlowMist Technology. As the security system of CoinEx gets perfected, plenty of crypto exchanges will surely be motivated to pursue security innovations. Together, crypto exchanges will build a secure, stable crypto trading environment, minimize security risks, and facilitate the sustained prosperity of crypto ecosystems.