Talk for Article "Cryptocurrency site NiceHash confirms hack"

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  1. [ This comment is from a user you have muted ] (show)

    I’m almost every story on cryptocurrency hacks, there is a failure to distinguish between the underlying block chain vs the exchange. It is not possible to steal from an unwilling owner, unless you acquire their wallet password and their key (guarded by their password). Smart owners follow recommended security protocols and keep that info very secret and should keep the key physically secure, perhaps in and offline usb device. When newsworthy theft occurs, I bribe it is universally due to hacking if a central exchange. Naive users will 1) transfer a balance from their personal wallet to the exchange’s wallet, 2) will register their key with the exchange. The motivation is convenience. Instead of eneterimg their password and attaching their key for every trade, they rely on the exchange’s security protocols. And can get ripped off. Someone can break website security, or use admin credentials to harvest the 1) centralized coin or 2) the centralized keys and then grab all coins from each user. If users followed the recommended security protocols and eschewed the supposed convenience, the exchange’s security weaknesses would not expose the users to theft.

    I am a software engineer, a reader of crypto theory, and not a user of crypto currency. I see the potential for ma y cryptocurrencies. It concerns me that the public might distrust the underlying technology (the block chain), when problems are being caused almost universally by exchanges, both intrinsically due to centralizing of security and specifically due to particular lapses.

    1. [ This comment is from a user you have muted ] (show)

      Good points Darrin. Actually, if you read our follow-up interview with the CEO, we managed to get a quote from a user who got hacked who said essentially the same thing: that the hack is a failure of the company, not a failure of the underlying system. You can read it here: https://www.wikitribune.com/story/2017/12/11/technology/nicehash-ceo-speaks-out-after-60m-cryptocurrency-hack/27212/

      But we’ll try harder to make that clearer since you’re right that what gets hacked are typically exchanges.

  2. [ This comment is from a user you have muted ] (show)

    I haven’t jumped into the whole cryptocurrency as of yet, but this is the part that makes me nervous.

    I know that this isn’t the first theft of Bitcoin or other Cryptocurrency; however, how do we move to protect those investments when it’s decentralized and such?

    1. [ This comment is from a user you have muted ] (show)

      Thanks. Good points. We aim to do a lot more on this area. Your ideas are welcome.

      1. [ This comment is from a user you have muted ] (show)

        I know that WT wrote a great article on blockchain and such, but I think having a better understanding of how wallets work would be great.

        When I first started researching wallets and I never realized that a wallet wasn’t the same as a wallet that you carry in your pocket. For example, some can only hold Bitcoin while some can hold multiple currencies.

        The other thing is there only seems to be discussion around Bitcoin in the world. I’ve read articles, including here on WT which says that there could be as much as a thousand different cryptocurrencies.

        Cryptocurrencies are certainly interesting and I’m interested in seeing where they will lead and take us in the future.

        1. [ This comment is from a user you have muted ] (show)

          Thanks Joel. An explainer on how wallets work is a good idea, I’ll see what I can do.

          And yes, Bitcoin is the most well-known because it was the first cryptocurrency. Others worth checking out are Ethereum, Dash and Bitcoin Cash. But there are thousands.

          1. [ This comment is from a user you have muted ] (show)

            Thanks Linh.

            This is a really interesting topic and I think it’s going to change the economy; however, I’m not sure if it’s going to be for the positive or negative yet.

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