Cryptocurrencies are catching on with investors and traders based on their rapidly rising values, although digital currency markets remain quite volatile due to wide fluctuations in valuations, both up and down. However, such wild price swings are not the only risks for businesses.
Bitcoin is the best known cryptocurrency, but there are many others including Ethereum, Ripple and Litecoin. In June, Seoul-based Bithumb reported that almost $32 million worth of cyber cash had been stolen from its cryptocurrency platform overnight after an employee’s PC had been hacked.
All cryptocurrencies involve decentralized systems of exchange that rely on advanced cryptography for security. In this way, a mathematical equation requires high processing power to be solved, and the solved result becomes a hash which in turn serves as the currency for exchanges.
A public key – much like an extended ID number – is used to identify the ownership of Bitcoins. Users can mask their personal identities through the trading platform.
All that’s needed to conduct an exchange is someone’s Bitcoin address, or a version of the so-called public key which is easier to read and type. Another chunk of the address is a user’s private key which is used to control the digital currency’s ownership. Read more from techspective.net…
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