As the world looks at the security concern as a primary repellent. Security issues not only repel the traders, but they also snatch away the trust from “what could have been huge” cryptocurrencies.
So, giant exchanges like Huobi Global need to step up in order to help the cryptocurrency revolution live up to its full potential. For one thing, they can help ensure that clients feel safe, especially from hackers, identity thieves, and other fraudsters.
Freshly, Ethan Ng, Huobi’s Head of Marketing, suggested a new set of industry standards for digital asset exchanges to focus on in terms of security for their users and for their digital asset exchange Huobi Global. He announced these suggestions at the Vietnam Cryptocurrencies and Digital Asset Dialogue of 2018.
Ethan thereupon proposed industry professionals to come together and tackle some of the security issues together. Some of his suggestions included:” Exchanges should set aside a fund to reimburse users after funds get stolen; Exchange funds should be stored more often in cold wallet, because they are more secure than hot wallets; Increase the internal controls and take a good look at projects before deciding to list them; Increase user safety by implementing mandatory 2FA verification; Install a robust cybersecurity team that is trained in Bitcoin protocol and will instantly notice double spend attacks (51% attacks) and transaction malleability.”
The way Huobi handled the security and safety issues is what interests me personally; from using its SMARTChain evaluation model to make a full analysis of each project before listing them on the exchange, by doing that Huobi ensures that the legit projects get separated from the fraudulent ones, to actually inventing its own security mechanisms which fall under the umbrella of “Huobi Buybacks”. Huobi Buybacks include “Huobi User Protection Fund” and “Huobi Security Reserve”.
The first one referring to using 20% of the income to buy back as many Huobi Tokens (HTs) as possible. Following this, the newly possessed Huobi Tokens will be stored and used to compensate user losses in case of theft or platform breaches and to improve Huobi’s security.
The second security mechanism consists of a reserve created by Huobi holds a total of 20,000 bitcoins. The funds are created independently. Similar to the “Huobi User Protection Fund”, Huobi uses these funds to compensate for user losses. As soon as any security breach takes place, the funds stored in the reserve will be used to pay back users provided they weren’t at fault.
Another brilliant security measure that Huobi has undertaken is that it actually stores 98% of user account balances in cold wallets instead of leaving them in more vulnerable and less-secure hot wallets.
[ PS: The list goes on, a more complete list of security measures can be found here: https://huobiblog.com/huobi-pushes-crypto-industry-to-embrace-stronger-security-measures/ ]
For all of that, I owe to say that with all these initiatives, Huobi guarantees in full, security for its users and for their digital assets. I personally have been using Huobi Pro and I cannot be happier with my choice as I truly think that the cryptocurrency industry can really benefit by having easy to use platforms that value safety and provide good and fast customer service.
If you are already a Huobi user, then you must know what I’m talking about, otherwise, you can register here or on the Huobi Global website.
Disclosure: This article should not be considered as financial advice as it only reflects my personal opinion and views and is solely intended to be for general information. This is not an invitation or an offer to buy or sell cryptocurrencies, nor is it a recommendation to buy or sell specific types of cryptocurrencies. I have savings invested in cryptocurrency and I happen to be a Huobi Pro user so take whatever I write with a grain of salt.