The 2022 collapse of the FTX exchange raised significant concerns within the cryptocurrency community, prompting reflections on the reliability of centralized platforms. If a prominent company like FTX faced vulnerability and posed risks, what faith can be placed in smaller exchanges? Is there anyone trustworthy in the cryptocurrency realm, which lacks substantial regulation on counterparty risks? This hazard remains prevalent for all cryptocurrency holders. This article will explore the concept of counterparty risk, focusing on its definition, highlighting its nuances within the crypto sphere ..read more

There are several types and classifications of cryptocurrency wallets. Mainly, wallets are distinguished by the way they store the private keys. The choice of a cryptocurrency wallet often revolves around finding the right balance between security and convenience. Self-custody wallets, also known as non-custodial wallets, do not have access to users’ private keys. Instead, individuals store these keys themselves, giving them full control over their digital funds. In contrast, custodial wallets function similarly to traditional banks by holding users’ assets on their behalf. While the popular s ..read more

The word “cryptocurrency” itself implies the defining role of encryption in this type of monetary system. All the sensitive data stored and managed on-chain is encrypted and has a form of a hash (a string of randomly looking letters and numbers). Hash cannot be decoded without a private key which is used to unpack the coded data and that is why this key is private — sharing this key is risky as the data can end up stolen. This article explains what private key encryption is, how it works, and how it is different from a public key encryption. What Is a Private Key Encryption? Encryption is a na ..read more

Blockchain became the staple for thousands and thousands of fintech products. Its disruptive characteristics allowed developers to build automated financial systems without compromizing safety, necessary transparency, and confidentiality. The study of the blockchain structure and principles will help you understand what made the success of this technology possible. This article particularly explains how a block of data on a blockchain gets locked. You will learn how this process occurs, what meaning it has on security, and what role consensus mechanisms play in the process. The Basics of Block ..read more

Before Ethereum emerged, cryptocurrencies had a straightforward focus, mainly serving as digital currencies with varying levels of emphasis on security, transaction privacy, and other factors. Ethereum transformed the cryptocurrency landscape by introducing versatile ecosystems capable of offering diverse services, ranging from supply chain management to music distribution platforms. Smart contracts emerged as a revolutionary tool enabling a multitude of applications for blockchain technology. A pivotal component of the Ethereum ecosystem is the Ethereum Virtual Machine (EVM). This crucial sys ..read more

Ensuring the security of your crypto assets is of utmost importance as crypto wallets and exchanges face frequent hacking attempts. Enhancing the protection of your crypto holdings whenever possible is advisable. Developers of cryptocurrency applications also tend to seize opportunities to bolster security measures. While hardware wallets are widely acknowledged as one of the most secure options available, an additional layer of security known as a hidden wallet can be employed. This article clarifies the concept of a hidden wallet in the realm of crypto, reviews its advantages, illustrates it ..read more

MetaMask, a well-known self-custody cryptocurrency wallet, was initially designed for storing and managing Ethereum-based tokens. Over time, it expanded its capabilities to support multiple blockchains such as BNB Smart Chain, Avalanche Mainnet C-Chain, Polygon Mainnet, and Arbitrum One, among others. Being a self-custody wallet, MetaMask prioritizes user privacy by not storing users’ private keys. Instead, it offers a feature-rich interface for users to securely access and manage their cryptocurrencies without collecting their personal data or recording sensitive information like hashes, keys ..read more

It is considered that as of February 2024, over 425 million people own cryptocurrency. It means that roughly every 20th person on Earth has some cryptocurrency. The overall crypto market capitalization amounts to $2 trillion. We can’t take the safety of all of this cryptocurrency for granted. The blockchain-based platforms and digital currencies exist under the constant fire from cybercriminals whose methods of stealing crypto elevate and challenge existing protection measures all the time. Encryption is a crucial element in the architecture of the security of cryptocurrencies. As cryptocurren ..read more

Most modern crypto products such as exchanges and wallets have user interfaces that take the long strings of randomly looking data away from our eyes and replace it with human-readable text whether its mnemonic phrases or names of the wallets. However, if you ever read about the inner design of cryptocurrencies you know that the blockchain technologies are unthinkable without encrypted data expressed in hash strings.  Hashing is one of the fundamental components of any blockchain-based product. Hashing secures the blockchain data and serves as a signature or an identifier for the pieces o ..read more

In over than ten years after the launch of Bitcoin, cryptocurrency wallets went through an evolution, going from a pair of keys saved by a crypto owner to multi-faceted platform that allows users to grow their capital, buy more tokens, exchange them, and even entrust the funds storage to a third party. One of the classifications of crypto wallets divides them into two categories: custodial wallet and non-custodial (or self-custody) wallets. This article indicates the differences between the two types, outlines advantages and disadvantages of both, and answers all the crucial questions concerni ..read more