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Compose a 1250 words assignment on security issues of bitcoin. Needs to be plagiarism free!
Compose a 1250 words assignment on security issues of bitcoin. Needs to be plagiarism free! In order to make it highly secure a private key is also provided to Bitcoin owners, which is kept in the computing device of owners. If a hacker gets access to the private key he can easily transfer Bitcoins to their desired location and spend them. Original owners of Bitcoins do-not have much option to recover them. On the other hand, credit cards are safe because hackers can only make fake charges in the name of cardholders. If the owner goes to the bank and proves to them that it was a fake charge the database is restored, leaving a card-holder with no loss. This is the most important security concern with the use of Bitcoin. Moreover, the storage facility of Bitcoin is provided as online wallets, which are very risky because hackers can develop programs to decrypt security measures and use the information of Bitcoin owners to steal them (Cook, 2010, p.25).
An attacker can control the network of a client in several ways. First of all, an attacker can relay blocks that he creates putting the user on a separate network through which he can access the required information. Secondly, an attacker can filter out the information required for stealing Bitcoins by executing a double-spending attack. Setting up the user to a separate network and creating a double-spending attack can help the attacker to watch transmissions going on, under the user’s ISP. The most important security issue is that all Bitcoin transactions are stored in a network, permanently and publicly. This means that anyone can see transactions and balance however name and identity are unavailable. If people with bad motives try to capture information and users keep using the same Bitcoin address, there is a high probability of theft. Apart from these issues, there is another major concern that might affect the use of Bitcoin in the future. It is known that Bitcoin uses SHA-256 and ECDSA algorithms for cryptography (Ransom, 2002, p.26). These algorithms are considered strong but it might be broken in the future. Hence stronger algorithms could be required to secure the payment mode of bit cons.
The most important ethical question against Bitcoin is if this payment system can help to overcome the present issues related to hacking or is it going to open another window for socio-economic unrest. Many people argue that there are already many problems related to the security of money and Bitcoin would just increase the chances of thefts.