For all its might, the Bitcoin technology (the cryptography and the protocol), has managed to form a robust track record of facilitating secure transactions using the Bitcoin network. You must realize, that it is probably the biggest distribution project on earth right now.
A common vulnerability shall we say, is typically user error, and of course we are subject to human error (unfortunately). Because human error is so prevalent, there’s always going to be those who contribute to such activities. Private keys can be lost, stolen or accidentally deleted, which is a similar occurrence when it comes to physical money too. We can neglect the importance of having money in our wallets, that we use to pay for goods and services on a daily basis. It’s the same principle. Look up the history of cryptocurrencies here.
Thankfully users of Bitcoin can employ certain security measures in order to protect their coins or wallets. There are even service providers who offer specific security measures to protect your money from the likes of unwanted intruders such as hacker, and offer good levels of insurance in the event of a theft or loss. Someone claims they can mine bitcoin with a Tesla- find out more here.
Has Bitcoin been hacked?
The protocol concept that was designed for the use of Bitcoin are actually still working, even after all this time, which shows that it was thoroughly constructed all those years ago. Nonetheless, there have been security complications in the past that have now been rectified by a means of updating current software to the latest patch. Every technology goes through stages of upgrading its underlying foundations by putting together plans to improve the structure and the overall design. Bitcoin is no different. The software used to implement changes and upgrades to the way Bitcoin works is dependant on how fast the issues can be located and resolved.
The more security issues that are discovered and treated as soon as possible, results in Bitcoin gaining a much more robust security framework, which can be used to deal with problems quicker in the future.
There have been rumours circulating that are linked with thefts and certain security breaches that occur on diverse exchanges and business. One thing to remember, is that none of them actually involve Bitcoin itself being hacked, I must stress that it also doesn’t involve any flaws in Bitcoin itself either.
Just like how a more than capable hacker can spend time and effort developing a way to breach a firewall or security measure, a good set of practices can be used to carry out the steps needed to successfully do so. It is an accurate way of thinking to assume that the same methodology can be used to defend yourself against such attackers. Security measures have been developed, such as wallet encryption, offline wallets, and multi-signature transactions.
Is Protocol change possible?
Changing the protocol surrounding Bitcoin isn’t something that can be done with such ease. If a client doesn’t comply with the same rules, he or she cannot just enforce their own rules, it doesn’t work like that. A phenomenon known as Double Spending isn’t possible with a the same blockchain. ICO’s are something else that a person should be weary of.
Double spending is a situation where an individual spending a Bitcoin balance does so more than once, which is a major concern for all digital transactions. All transactions are written into blocks, which are then verified using a confirmation process. Once a transaction has been confirmed using blockchain, it is then made irreversible.
Double spending would be made possible however, if powerful miners were to block recent transactions and put pressure on the status quo to be changed. An act this powerful would need everyone to agree on that change, as Bitcoin only works if there is a complete agreement between its users to the point where people resisting the change would have no option to go along with it. Conducting such an enormous alteration would cause an unnecessary risk and compromise people’s money, and it’s to think why people would do that in the first place.
Bitcoin & Quantum computing
The amount of progress which is being made in the field of quantum computing is no longer a well-kept secret. There is constant updates on how the latest quantum computers are going to change the way we do things, like spend money. With the inevitable introduction of quantum computing in the future, it makes Bitcoin rather vulnerable.
Because quantum computers don’t really exist yet, there’s no need to panic. However when the time does come to embrace the new, and evolved quantum computing the logical thing to do is to upgrade everything. This of course would be performed by highly trained professionals in their respective fields, and would be adopted by all Bitcoin users in the future for safe and secure transactions.