The vulnerability of the market increases even further as many new investors are not well versed in terms of online security and store their assets directly on the exchange as opposed to using cold storage wallets and decentralized exchanges.
A US-based cybersecurity company CipherTrace recently released a report that suggests that the volume of cryptocurrencies stolen or scammed increased by four times in 2018 to nearly $1.7 billion. Of the $1.7 billion, $950 million were thefts from crypto exchanges and wallets. This amount increased by 260% from $266 million in 2017. Surprisingly, the most considerable amount of thefts took place in Korea and Japan. Together they account for 58% of the total amount throughout 2018. In addition to those thefts, the research suggests that investors lost around $725 million in cryptocurrency in 2018 to different scams, such as fraudulent ICOs, Ponzi schemes, and exchange hacks. Comparing this number with the previous year, the amount increased by more than ten times from $56 million in 2017.
Because of such an increase in fraudulent activity, regulators of many countries around the world became more and more cautious of the crypto industry, and hence legislation and taxation were implemented. For instance, all the top five countries in terms of standards of living, namely: Switzerland, Finland, Australia, Canada and Denmark – already embraced cryptocurrencies and made them subject to taxation and various laws compliance.
Quantum Resistance Blockchain
In order to acquire the most benefit from cryptocurrencies, it is crucial to look at those with the strongest security algorithms and clear potential intentions. Crypto industry never stops developing and nowadays proof-of-work and proof-of-stake systems on which most coins are working are no longer the most advanced blockchain proofing algorithms. The cutting-edge technology is Quantum Resistance blockchain – a brand new algorithm that uses command chain protocol (C2P) that prevents malicious entities from executing a 51% attack, a problem which all the PoW and PoS currencies are vulnerable against. The only company that offers such protective technology at the present time is Ilcoin.
Quantum resistance blockchain uses C2P protocol which follows a set of rules and policies embedded in the source code that can filter certain types of activities. It helps to prevent any blockchain abuse such as double spending, the creation of fraudulent blocks and reversing transactions. In order to create a safe environment for the user, three different levels of security were implemented.
- The 1st type of node is a normal node that is used for synchronization with the network and wallet generation.
- The 2nd type of node is a uniquely designed validator node that validates the transactions over the network.
- The 3rd type of node is the Master node. In order to approve the block, the Master node must sign it with a unique digital signature.
The technology completely prevents the attack of 51% making the blockchain quantum resistant. Even if the strongest hash rate attack is performed on the network, it will be futile as the Master node will not be signing the block. This unique asset arguably makes Ilcoin the most secure coin that ever existed. Moreover, with these three levels, the stress is spread across the network by giving different tasks to complete to every full node, thus increasing strength, speed, and sustainability of the chain.
Reliability of the project
To check the reliability of a particular blockchain project, it is important to look into its history and how it is presented on the most trusted blockchain-related digital sources. Only the best projects make it to CoinMarketCap listings. The coin must be present at at least two exchanges supported by CoinMarketCap. However, the source also evaluates many factors besides the basic criteria when deciding to add a new listing, such as community interest, trading volume, uniqueness and age of the project.
Moreover, the Ilcoin topic on BitcoinTalk has been active since December 28, 2017 meaning that the team has been working on the project for several years already and it is not a 1-month Ponzi-scheme with which all the new crypto initiatives are associated with. Even more important is the fact that the development team published Ilcoin source code with the integration of the aforementioned C2P protocol on github.com – the largest host of source code in the world (28 million users and 57 million repositories as of June 2018). It is a highly respected source in the IT community as it helps the developers collectively solve issues or make improvements to the codes posted.
The heart of GitHub is Git – an open source project created by the father of Linux, Finnish programmer – Linus Torvalds. It is a distributed version control system used for code storage and revisions but essentially can manage any type of files. All alterations are made in the local copy, and if they are to be shared, a ‘pull request’ is sent to the original owner, where he agrees or disagrees to merge the changes. The fact that Ilcoin team made their source code available for everybody stands as proof of their transparency and positive intentions. Its technological supremacy in terms of protection and speed will definitely get Ilcoin recognized among the strongest blockchain initiatives in the future.