Blockchain

How can blockchain be used to keep digital assets safe? Which are the apps consumers can use?

By Shrikant Bhalerao

Digital assets are becoming increasingly popular because they are easy to trade and store. They also offer a high degree of security that traditional investments do not and are difficult to counterfeit. The infrastructure development and integration of blockchain are bringing out the full potential of digital assets.

There are many reasons for the rapid adoption of digital assets, including-

➢ They can be used to hedge against inflation. 

➢ They offer a way to diversify one’s portfolio. 

➢ They are becoming more accessible to the average people through platforms like Coinbase and Robinhood. 

➢ They are not subjected to the same regulation as traditional investments, which makes them more attractive to some investors. 

➢ They offer a degree of flexibility and liquidity that traditional investments do not. 

The blockchain is a distributed database that allows secure, transparent and tamper-proof storage of digital assets. What makes blockchain safe and ideal for storing digital assets, is its decentralized nature. By using cryptographic hashes, each asset can be securely stored on the blockchain and tracked as it changes hands. This makes it an ideal platform for keeping track of digital assets. Additionally, blockchain allows the creation of smart contracts, which can automate the management of digital assets, ultimately increasing the overall security.  

While discussing blockchain security, it is also essential to look at its vulnerabilities. Blockchains have been attacked in different ways, major being Phishing, Routing, Sybil, and 51% attack. As a user, you must be most concerned about Phishing, where scammers attempt to steal a user’s credentials.

A user must understand the type of blockchain they are interacting with, whether it is public, private, or permissioned, and then choose a medium to store their assets accordingly. Because managing your digital assets is probably one of the most important aspects of owning a digital asset. The most commonly used ways to store digital assets safely are via blockchain-based wallet apps, custodial and non-custodial. Major custodial wallets based apps include Coinbase, Binance, BitGo, and KuCoin, which operate at a centralized level. Non-custodial wallet apps like Exodus, Ledge Nano S, MetaMask, TrustWallet, and others operate at a decentralized level.

Also Read: 31 percent of Russians are expected to make cryptocurrency purchase in the next six months: Survey

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