Saturday, January 28, 2023
  • Blockchain Security experts created the Crypto Security Standard in 2014. Its main aim was to govern the use of digital assets and effectively aid blockchain security
  • Fireblocks became the first company to acquire a Cryptocurrency Security Standard certificate signifying that competent blockchain security is achievable
  • As a form of recognition, Fireblocks received a level three CSS certification, a feat no other crypto exchange platform has acquired.

With 2022 coming to an end, most crypto traders have acquired a unique taste for trade. Many veterans and newbie crypto traders have claimed that crypto volatility is no longer the only primary concern when venturing into crypto trading. Instead, securing one digital asset is also just as crucial. Compared to 2021, the number of crypto hacks that occurred in 2022 pales. However, the amount of damage exceeds it.

The Ronin Network hack, which resulted in a $625 million loss, is recognized as the top crypto hack since Bitcoin’s first debut. As a result, more companies and crypto exchange platforms have focused on improving blockchain security. Through this constant strive for improvement, various organizations have achieved astonishing feats in blockchain security applied in crypto wallets. Fireblocks, a tech company that offers digital asset custodians, is the first to receive the Cryptocurrency Security Standard certification. This marks the next step in blockchain security.

Crypto Security Standard Certificate sets the bar.

One notices the sudden increase in crypto partnerships when focusing on the achievements the crypto ecosystem has attained within 2022. Organizations such as Visa, MasterCard and even Google cloud have partnered with various crypto organizations to introduce a new crypto wallet within their services. This gives way to crypto payments, although many are still sceptical about this. The distrust stems from crypto volatility and the decentralized nature of cryptocurrency. Most are concerned about crypto transactions’ authentication, authorization or confidentiality limits.

Cryptocurrency Security Standard

Cryptocurrency Security Standard sets the bar for blockchain security in handling crypto wallets and digital assets.[Photo/FassetCryptolog]

The central concept of blockchain is to give power to the users. Unfortunately, most users tend to exploit these privileges, or organizations try to control and limit a user’s capabilities entirely. Both sides of the spectrum have various blockchain security issues.

Online payments using fiat currency are mainly successful due to the incorporation of the Payment Card Industry Data Security Standard (PCI DSS). Super headed by major brands such as Discover Financial Services, JCB International, Visa and Master Card, it eventually became the default standard for most organizations.

With crypto wallets slowly gaining fame and the crypto industry expanding, it requires a standard for governance. Thus Blockchain Security experts created the Crypto Security Standard in 2014. Its main aim was to govern the use of digital assets and effectively aid blockchain security.

Also, Read about The recent crypto slump and the harsh lessons on custody and control.

CCSS is a set of requirements for all systems that use cryptocurrencies and any DeFi systems. It applies to exchanges, web applications and any crypto storage solutions. Its creators believed in the standardizing of techniques and methodologies used by systems. Crypto traders can make more accurate and educated decisions when dealing with digital assets.

How the CCSS works

The Cryptocurrency Security Standard is an open standard designed to augment information security practices and complement existing standards (ISO 27001), not replace them. Many assume that CCSS is a variation of PCI DSS applied to crypto, which is inaccurate. The PCI DSS is a standard that applies to the entire transaction flow that incorporates the technology used by the transaction and all the alternative processes that aid it. The CCSS mainly focuses on the blockchain security part f the transaction. Its primary function is to provide security management for the crypto wallet.

CCSS is broken down into three distinct blockchain security levels, each higher than the other.

  • An information system that has achieved Level I security can protect crypto wallets with solid levels of security.
  • A higher level II of CCSS translates into enhanced levels of security with formalized policies and procedures enforced at every step of the respective business processes.
  • Level III of CCSS requires multiple actors for all-critical actions. Advanced authentication mechanisms are employed to ensure data authenticity and digital assets’ distribution geographically and organisationally.

When these three blockchain security levels are applied, it significantly boosts the security of crypto wallets. Unfortunately, the mechanisms of these standards focus mainly on security so much that many organizations need help to implement them. It would cause them to relinquish control over the crypto wallets, which they are not ready for. According to experts, most blockchain startups don’t adhere to security best practices as it would require additional investments in blockchain security appliances. 

Also, Read Crypsense bridges the information gap to warrant Africa’s digital transformation.

While reviewing the recent crypto breaches, analysts discovered that all affected crypto exchange platforms did not adhere to the CCSS level 1. This spoke volumes about the competency most organizations within the crypto ecosystem need to improve. By applying CCSS level 2 or higher most of these blockchain security systems would be able to withstand most cyber attacks.

Fireblocks take the first step.

Fireblock is a blockchain security company that provides the necessary means to curb any attempts at hacking cryptosystems. Michael, Idan and Pavel are the minds that realized blockchain needs improvement. Thus they decided to provide the security required to protect crypto traders and exchanges.

Thus they teamed up to create Fireblocks, an easy-to-use digital assets security platform that aids financial institutions in protecting digital assets. These combinations can utilize breakthrough MPC and patent-pending chip isolation technology to provide much-needed blockchain security.

They secured private keys and API credentials through this mechanism and even eliminated the need for deposit addresses. Despite this, the most noticeable achievement Fireblocks attained is their digital asset custody feature that enables them to secure digital security without compromising the availability of services.

What is Digital Asset Custody

Digital Asset Custody is a bread terminology that compiles the different methods of storing and protecting digital assets. Crypto custody providers take responsibility for securely storing a crypto trader’s assets and typically offer additional services such as buying and selling them.

As the world is slowly moving into decentralized finances, having a third party specialize in securely storing digital assets alleviated most of the workload from crypto exchange platforms. Fireblocks saw this opportunity and mainly focused on building its blockchain security functionality. An organization specializing in blockchain security within the crypto industry soon gained much attention.

Also, Read Phishing Attack and how it plagues blockchain security

The core of digital asset custody revolved around crypto wallets, usually the primary targets for crypto hackers. Crypto wallets can take any form sung a variety of methods to store and secure private and public keys. By applying various access controls such as passwords or biometrics, these crypto wallets can take any form, given the proper method.

Instead of managing the keys, crypto traders relinquish this burden to digital asset custodians. With some custody offerings, the crypto trader may need to learn or even have direct access to the set keys. This significantly boosts blockchain security mechanisms. The custodian verifies the user’s identity if any party forges the keys. In most cases, the user generally uses various authentication methods to verify their authenticity. 

Fireblock acquires CCSS

Fireblocks is a tech company that mainly focuses on blockchain security. Their team has incorporated and augmented various standard information practices to achieve blockchain security.

Fireblocks

Fireblocks is the first company to attain a CCSSA certificate proving that the crypto industry can attain competent security measures.[Photo/Fireblocks]

This ensures their client’s digital assets are safe within their crypto wallets. Over the years, they improved and incorporated new security features and eventually achieved the highest level of blockchain security.

As a form of recognition, Fireblocks received a level three CCSS certification, a feat no other crypto exchange platform has acquired. According to accounting firm Deloitte, it requires multiple actors for all-critical actions to achieve such a feat. In addition, it has to employ advanced authentication mechanisms to ensure data authenticity and digital assets’ distribution geographically and organizationally.

Also, Read 51% attack: The blockchain security threat that blindsides the Proof of Work mechanism.

Marc Krisjanous, the CCSS auditor, stated that after a rigorous audit of the entire Fireblocks fraternity Fireblock did not just meet the level three requirements. They exceeded expectations. Some even say Fireblocks may set a new level within the Cryptocurrency Security standard revolutionizing blockchain security in the crypto industry.

Wrapping up

2022 has tested the limits and practicability of blockchain security. CCSS is a roadmap that shows organizations the necessary steps to achieve an intelligent security system. Unfortunately, most of these organizations are yet to invest in proper crypto wallets, let alone their blockchain security mechanism.

Although Fireblocks showed us that there is still hope, achieving these requirements is still within reach, and the crypto industry is required to take the initiative. Ultimately, if the crypto industry is unwilling to invest in its blockchain security, 2022 is merely the beginning of the age of crypto hackers.

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