Risk in digital currency - data security, Other Subject

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Data security

Digital Gold Systems are totally reliant on electronic storage and spread of account possession information. Consequently the security of a given digital currency explanation is reliant upon the security of the Issuer as well as the safety of the Account Holder's computer.

Whereas the Digital Gold Issuers utilize data security experts to look after their systems, the standard account holder's computer is inadequately confined against malware (Trojans, worms, and viruses) that can be used to interrupt information that could be used to right to use the user's DGC account. So the most widespread attacks on digital currency systems are going to against account holder's computer throughout the use of malicious spam, phishing and other techniques.

places the entire liability on the shoulders of the user, and uses a user-name and password verification system that is weak and extremely susceptible to interception by malware. (Although it is the most ordinary authentication technique used by online banks.) The "not our problem" approach to user security has depressingly contributed to e-gold's public picture, as not a few e-gold accounts have been hacked and swept clean by attackers.

E-Bullion presents account holders a "Crypto card" security voucher that changes the passphrase with every logon, but accuse the account holder USD $99.50 for the voucher. E-bullion does not need customers to use the Crypto card, so account holders who want not to get one may experience from the similar security matter as e-gold customers. Gold Money permits the user to login with user-name and passphrase, but sends an email with a exclusive personal identification number (PIN) that the user must enter in the type to entire the transaction. This diminish the likelihood of a successful attack because the attacker have to gain control of the user's email account in adding up to his login information, and must additional prevent the user from in receipt of the email with the PIN, which would aware the user that somebody is affronting to transfer gold out of his holding.

Pecunix work out a unique rotating key system that offer a lot of the benefits of a security voucher without requiring the user to purchase one. Pecunix also supports the use of PGP signatures to access an account, which is probably the strongest of all verification techniques.


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