Home Blockchain How can blockchain be used to ensure the security of digital assets? What apps can consumers use?

How can blockchain be used to ensure the security of digital assets? What apps can consumers use?

0
How can blockchain be used to ensure the security of digital assets?  What apps can consumers 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 offer and are difficult to counterfeit. Infrastructure development and blockchain integration bring 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 means of diversifying one’s portfolio.

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

➢ They are not subject to the same regulations as traditional investments, which makes them more attractive for certain investors.

➢ They offer a degree of flexibility and liquidity not offered by traditional investments.

Blockchain is a distributed database that enables 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 stored securely on the blockchain and tracked as it changes hands. This makes it an ideal platform for tracking digital assets. Additionally, blockchain enables the creation of smart contracts, which can automate the management of digital assets, increasing overall security.

While discussing blockchain security, it is also essential to consider its vulnerabilities. Blockchains have been attacked in different ways, the main ones being phishing, routing, Sybil and the 51% attack. As a user, you should be most concerned about phishing, where scammers attempt to steal a user’s credentials.

A user should understand the type of blockchain they are interacting with, whether 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 securely are through blockchain-based wallet applications, both custodial and non-custodial. Major custodial wallet-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.

Read also : 31% of Russians Expected to Buy Cryptocurrency in the Next Six Months: Survey

follow us on Twitter, Facebook, LinkedIn

LEAVE A REPLY

Please enter your comment!
Please enter your name here