Ben Zhou of Bybit: crypto platforms are a “single point of failure“

Quick Take

2 minute read

• Following bad actors taking it upon themselves to hack KuCoin, worry was flooding the industry. But according to the CEO of Bybit, this shouldn’t be a surprise anymore as platforms are vulnerable by design.

• Speaking in an interview, the CEO explained that many platforms are just a single point of failure as centralised web applications like exchanges are vulnerable to the same security issues as all other websites in the world.

Following bad actors taking it upon themselves to hack the KuCoin crypto exchange, worry was flooding the industry. But according to the CEO of Bybit, Ben Zhou, this shouldn’t be a surprise anymore as platforms are vulnerable by design.

Speaking in an interview with Cointelegraph, the CEO explained that many platforms are just a single point of failure as centralised web applications like exchanges are vulnerable to the same security issues as all other websites in the world.

According to him, he goes on to say that numerous exchange servers in the cryptocurrency world keep digital currencies in hot wallets and if they are not properly protected then it can open them up to a whole world of malicious individuals. 

He goes on to say that the cold wallet system is a significantly more secure route to go down as hot wallets are connected to the Internet and as a result of this, they are more vulnerable to hacking and bad actors. But given that cold wallets are not connected online, this is a vulnerability that isn’t questioned.

As many people will more than likely agree, security is one of the key aspects of holding cryptocurrency or any investment for that matter. Furthermore, he says that many exchanges need to up their game and address vulnerable areas of security in a much quicker and more efficient manner. 

He goes on to say:

“This can be accomplished by applying best practices for application lifecycle management, hiring knowledgeable and reputable security consultants for penetration testing and running bounty programs within the white hat community to identify any potential vulnerabilities.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.