While the fortunes of cryptocurrencies rise and fall, one concern remains the same: security. The publisher of this piece was interested in exploring the intersection of the EU’s GDPR data privacy laws and cryptocurrency. Skeptical Robot Studios learned that despite what crypto markets and exchanges may say, cryptocurrencies are indeed vulnerable to hackers.
Read an excerpt here …
The art markets are becoming crowded with cryptocurrencies: Bitcoin, Ether, CodexCoin, Bitchcoin, ART, CLIO, and many more. Technology ventures intend the digital currencies to act as a tender for Blockchain applications.
The creators of Blockchain intended the technology to be a distributed ledger of linked records for which every user in the Blockchain receives updates to the records. Each record is immutable, unchangeable. Bitcoin -- considered the first cryptocurrency -- was born in a Blockchain environment as a counterpoint to the control that central banks exerted over economies.
However, hackers have seen Blockchain wallets of digital currency as a new source of funds to steal. For instance, the Decentralized Autonomous Organization (DAO) was a kind of crowdsourced venture capital fund that allowed people to make investments using Ether. DAO had raised over US$150m in May, only to have more than US$50m drained by cyber criminals in June 2017. The theft reduced the value of the currency by a third. Bitfinex, a Hong Kong-based digital currency exchange, lost about $65m in a cyber attack in August. In the first half of 2018, cybercriminals stole more than US$1 billion from Blockchain wallets.
Ironically, the EU’s General Data Protection Regulation (GDPR) may undermine cybersecurity investigations into Blockchain thefts. The law came into force on May 25, 2018. Companies and institutions incorporated in EU countries will be responsible for the proper protection of personal data they collect and maintain. The intent of the GDPR is to give persistent control to consumers over personal data, including their transactions…
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