Is Bitcoin Unhackable? – Can Cryptocurrency be hacked?

Can cryptocurrency be hacked? With the recent theft of over $600 million in cryptocurrency from the popular video game Axie Infinity. This amount is only waylaid by the statistics analyzed in 2021, which shows a grand total of $14 billion stolen in that year alone. Clearly, crypto scammers and hackers are hard at play and have the proper means to conduct such a theft.

Last month alone showed a theft of $190 million dollars in digital currency. Are we to expect a larger number by the end of the year?

Cryptocurrency was once hailed as this unhackable and incorruptible medium of currency. Investors were singing its praises, saying that this was the modern solution to currency and that the future was crypto.

With the recent string of thefts, people are worried about investing in cryptocurrency. And their misgivings are completely warranted.

Let us dive into what cryptocurrency has to offer, before discussing the security precautions set in place to protect your digital assets. And whether or not it really is safe for use, or can cryptocurrency be hacked?

What is cryptocurrency?

Cryptocurrency is a decentralized digital currency medium that has information about every transaction and proprietary rights stored in an online ledger called the blockchain. This technology took the world by storm and investments started pouring in, ultimately leading to the success of the concept of digital currency.

The entire crypto market is worth more than $1.49 trillion, and that figure will triple in the next ten years.

The verification and authorization paradigms set in place for every crypto transaction show just how secure this mode of fund allocation is.

How secure is crypto?

Blockchain technology acts as a sort of public ledger for cryptocurrencies like Bitcoin and Ethereum. Every transaction is recorded and can easily be verified. These blockchain accounts can not be altered or changed. Which ensures that all digital transactions are secure.

Blockchains derive their name from their security technique where data from every transaction is encrypted with the proprietary information of ownership. Every encrypted data block is linked with the previous data entry and so on. Creating a data chain that is fully encrypted. Altering the information in the blockchain is just not possible.

Or it shouldn’t be possible, but there are ways around it.

Can the blockchain be hacked?

Any hacker worth their salt will have extensive knowledge about the subject. Capitalizing on any blind spots to access their way in is what they’re good at. And if the recent litany of thefts is anything to go by, the ‘secure’ blockchain technology and the cryptocurrency can most definitely be hacked.

In order to take control of the blockchain, hackers can target the computational system that powers the blockchain. This way they can include additional data into the blockchain.

The private keys assigned to each individual token – which is where the ownership information is stored – can be targeted. Once the keys are hacked, your information and assets are in the possession of the hacker.

Is Crypto Unhackable?

With all digital technologies, there is always a weak spot that can be taken over with the right tools and knowledge. Cryptocurrency and its public ledger, Blockchain, are no exceptions. The previous declarations of it being something that can never be hacked is false information.

The only solution to such a predicament seems to be making the blockchain more complicated. Adding various barriers for both innocent users and nefarious hackers. These precautions can either alienate their customers or the ones committing the crimes.

Either way, we have a long way to go before we can completely trust in cryptocurrency as the only logical solution for currency displacement.

As for now, yes, cryptocurrency can be hacked.

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