Tuesday, January 31, 2023
  • Mastercard has introduced a new piece of secure crypto software that will assist banks in identifying and blocking transactions from fraudulent crypto exchanges
  • Its AI capabilities allow this sophisticated software to determine the risk of a crime associated with crypto exchanges on the Mastercard payment network.
  • It is essential to note that secure crypto software is a detection system for banks and DeFi institutes. This means they only alert these institutions that suspicious activities are underway within their network.

Crypto hackers are a notorious plague on crypto, second only to crypto volatility. The fear of one day losing all your assets in a single day might not be on the minds of many, but it is a reality. Blockchain security is known as a ‘working progress’ due to its consistent vulnerabilities.

Recently, major crypto exchanges such as Binance and Wintermute suffered significant losses due to notorious crypto hackers and blockchain vulnerabilities. DeFi institutes have also suffered significantly. Ronin Network hacks the largest DeFi hack in history, losing over $600 million.

Blockchain security has become a consistent tuck of war between security specialists and hackers. Mastercard, a payment giant, launches a secure crypto software which will act as an anti-fraud tool for card issuers.

Mastercard’s new gadget.

Mastercard has introduced a new piece of secure crypto software that will assist banks in identifying and blocking transactions from fraudulent crypto exchanges. This new software, Crypto Secure, utilizes blockchain security and surveillance tactics and various AI functionalities.

Its AI capabilities allow this sophisticated software to determine the risk of a crime associated with crypto exchanges on the Mastercard payment network.

Also, Read The Sandbox, a core component of the Metaverse and crypto in the gaming industry.

Mastercard partnered with CipherTrace to create this masterpiece. Dave Jevans, Chief Executive Officer of Ciphertrace, stated in 2021 that their company, alongside Mastercard, shared a similar vision.

blockchain security

MasterCard creates a new secure crypto software that will gain much leverage in the battle against crypto hacks. [Photo/MasterCardData&Services]

They both wanted to create a secure environment that would reassure their users that no third party would be able to steal all their hard-earned money. Building a trustworthy ecosystem within the crypto space will significantly benefit them and Mastercard. 

Ajay Bhalla, Mastercard’s president of cyber and intelligence business, stated this move was an assurance act. It can significantly boost its trust by showing its partners that they can stay compliant with the complex regulatory landscape, such as blockchain security.

He continued to further state that the digital asset market that DeFi institutes thrive on is substantial. Likewise, it is also a target of many crypto hacks target. Mastercard intends to provide the same security it offers for regular payments to digital transactions for consumers, banks and merchants.

How Crypto Secure works

The mechanisms that govern the secure crypto software extensively leverage combining blockchain security and AI capabilities. Through AI algorithms, Crypto Secure can color0code signals with different levels of suspicious activities. Blockchain security contains a monitoring mechanism with AI features that traverses the network to detect suspicious activities.

It is essential to note that secure crypto software is a detection system for banks and DeFi institutes. This means they only alert these institutions that suspicious activities are underway within their network.

The decision to flag these activities as crypto hacks will solely depend on them. Although the secure crypto software is merely a monitoring system, Mastercard and Ciphertrace have accomplished a remarkable feat within Blockchain Security. It can detect suspicious activities, a precursor of crypto hacks and other fraudulent activities. They are effectively preventing massive losses, and DeFi institutes would have suffered.

The Big Picture

Mastercard can now address the issue of compliance in the crypto space. More banks and DeFi institutes are embracing crypto within their services for trading and storage features. Last month, Nasdaq became the latest established financial firm to join Wall Street’s embrace of crypto, launching custody services for institutional clients.

Even with crypto hacks reducing by 15% in volume and crypto scams reducing by 65% as compared to 2021, a loss of $1.6 billion still occurred, a calculation conducted by Chain analysis. While the rate of crypto hacks has reduced due to the recent decline of cryptocurrency this year, there have still been significant ones.

Despite this decline, Mastercard’s general digital asset strategy is still undeterred. According to Bhalla, they are still focused on providing solutions to the stakeholders for the long-term stretch. 

Since crypto is still highly volatile, it is still possible to surge; viewing crypto as a long-term goal is the best option for any investor trying to profit from it. A slump in crypto prices will not entirely discourage crypto hackers from exploiting blockchain security vulnerabilities.

This year, a prevalent method of swindling crypto investors of their funds has been to control blockchain bridges, tools used to exchange assets from one crypto network to another. the secure crypto software aims to curb this issue.

Also, Read Wrapped Bitcoin is a new way of applying Bitcoin in the Ethereum ecosystem.

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