The $200 million hack that recently hit the Hong Kong-based Mixin Network has stirred not only controversy but a deeper conversation regarding security within the world of blockchain and cryptocurrencies. While digital currencies are lauded for their advantages in fast and cost-effective transactions, hacks like this remind us of the problems that can still occur.
For those unfamiliar with the details of the incident: On September 25, the decentralized cross-chain transfer protocol Mixin Network had approximately $200 million stolen in a cloud server hack compromising Mixin’s hot wallets. It’s a regrettable event that has shaken trust, given that cryptocurrency storage was initially devised to be incredibly secure.
Some industry stalwarts, like Zhuoer Jiang, the CEO of the Bitcoin mining pool BTC.TOP, argue that the BTC stored in the Mixin protocol should not have been vulnerable in the first place, calling out the company for not keeping their Bitcoin in cold storage, which is known to be less susceptible to hacks.
Unfortunately, this event is not isolated in the world of cryptocurrencies and blockchain. Just a day earlier, Huobi Global was reportedly hacked, losing almost $8 million in crypto assets. This series of security breaches raises the undeniable need for cybersecurity to advance alongside the speed of blockchain development and adoption.
But there is an upside to this scenario that deepens this conversation. Even in the event of these unfortunate hacks, Mixin Network’s founder Xiaodong Feng and Huobi Global have each stepped forward and initiated compensation strategies for their users, promising to make up losses with future profits or to cover the losses fully. One could argue this is a bright aspect of such unfortunate situations, where corporate responsibility and transparency are placed at the forefront, a display of trust and reliability.
As blockchain technology paves the path towards the future of finance, its associated companies face the hard truth of needing to maintain advanced and impenetrable security efforts. Gone might be the days of analog robberies and heists, but the digital world is proving to have its own brand of criminals. As we move forward adopting this technology, it is crucial to remain mindful of both sides of the coin: the innovation and the necessary security measures. In the grand scale of things, both the convenience and the risk are part of this journey towards a decentralized financial future.
Source: Cointelegraph
