How Bitcoin In fact stolen? Theft prevention

US $ 65000000 success dollars hackers attack launched on the trading platform Bitfinex left the community to question the actions of the signing of multiple implemented by sharing security technology . It also caused a relatively simple but important argument ; Bitcoin how really stolen ?

To begin , let's cover the basics of security Bitfinex default . As demonstrated by infographic provided by Bloomberg then the main factor behind the vulnerability of Bitfinex trading platform was inadequate execution of multi- signature technology and software BitGo .

In theory, it is the second authenticator BitGo back Bitfinex to sign and approve each transaction initiated in Bitfinex trading platform. Thus, when a user sends or transmits the transaction to the Bitcoin Blockchain, first Bitfinex adopt its version of the private key and BitGo then provides a second authentication to approve the transaction.

Bitcoin is stolen when private keys are compromised

However, after hackers managed to control the private key held by Bitfinex, BitGo automatically sign all suspicious transactions, due to the weak and vulnerable Bitfinex application. Given this fact, Bitcoin is actually stolen from users when funds from private keys users agree. Private keys users can only be compromised if stored online, on vulnerable systems.

The danger mechanism behind most exchanges

It is important to consider the danger behind mechanism to handle deposits from users and providing IOU and users instead of signing direct a greater share of trade transaction Bitcoin always involves Sheets risk, because if and when the pirates computer inevitably penetrate an exchange servers, these data sets are more likely to be filtered.

Some Bitcoin enthusiasts believe that the notion of "Bitcon theft" is not valid because users simply lose control of the funds, if they lose their private keys. In a decentralized authority and without the Bitcoin network, any network user can actually create energy transactions to reverse or redirect payments. For example, thieves can get safes of banks and stealing customer money. However, hackers can not perform a similar attack in itself Bitcoin has no central depository. Therefore, it is important that users maintain control over their private keys by using decentralized as potentially Bitsquare exchanges.