Bitcoin Security

Security

bitcoin security

bitcoin security

 

Bitcoin is considered the world’s safest currency.

Bitcoin network technology and cryptography, combined with the principle of P2P peer, helps maintain the safety and reliability of the distribution system.

With a central server, a central network system, and the P2P network without a central server, each client is a node, while the server functions, a node cannot find any other node directly, and the group must rely on their families for information exchange.

Bitcoin uses the following three kinds of mechanisms to solve the initial run, look for other nodes problem.

By default, the clients of Bitcoin join an IRC chat channel, and can learn to join other IP addresses and port of the client channel. The names of the channel and IRC chat server are written in the Bitcoin software.

Some “well-known” Bitcoin nodes can also be programmed in software to prevent IRC chat service functioning.

You can add the IP addresses of other clients by running bitcoin manually.

Now, there is no need to run these three mechanisms, once connected to a node Bitcoin, the information sent will contain the address of the other node peer network P2P, and can find other nodes directly through its anonymous user groups.

Internet nodes through the P2P technology and cryptography principles combine to ensure the Bitcoin system cannot be issued by the government, any organization, or monitored by hackers, or even isolated or destroyed.

These features are present in order to protect the system’s reliability and anonymity. Denial of Service (DDoS) and other such attacks, cannot affect the Bitcoin trading center. After May 2013, the U.S. government seized the world’s largest Bitcoin exchange bank accounts, in order to maintain the exchange rate at a Bitcoin exchange below $ 120.

 

Privacy protection

bitcoin protection

bitcoin protection

 

As the transaction information is broadcast to the entire network, all the details of the transaction records are public. Unlike traditional bank transaction information which is kept strictly confidential to protect customer privacy, bitcoin creates a different address for each transaction to protect privacy of its users.

For example, if party A wants to send 1.20 BTC to B, then all nodes are able to view details of this transaction on 1.20 BTC Bitcoin network.

But unless A or B announces that they have an address, it is difficult for other people to know that a deal took place between Party A and Party B.

 

Theoretically, if a survey is able to establish an association with a particular address between users, then the investigator can trace and figure out the other side of each transaction.

For example, the identity of the other party is required to find out the details of the transactions, and follow them until you determine the true owner of the destination address.

The fact is that it is very difficult to determine the true owner of a Bitcoin. This feature attracts many illegal traders who show a lot of interest in Bitcoin trading.

 

bitcoin security

bitcoin security

Botnets mining: In June 2011, the network security company Symantec Corp. warned that Botnet is involved in Bitcoin “mining”.

This activity led to the using up of the victim’s computing capacity and power consumption and led to a host of issues. Later that month, the Australian Broadcasting Corporation found that an employee with the company’s servers was involved in the mining.

Additionally, some controversial software that involves extensive use of graphics parallel to computing capabilities was generated. In August 2011, it was discovered that botnet was mining Bitcoin using Mac OS X.  Trojan virus infection has also been found to be mining bitcoin.

 

 

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