TECHNOLOGIES OF CRYPTOCURRENCY SECURITY AND BLOCK CHAIN NETWORKS
Journal Title: Зовнішня торгівля: економіка, фінанси, право - Year 2019, Vol 3, Issue 104
Abstract
Background. The dynamics of the introduction of information technology in the banking sector in recent decades cannot fail to impress. It is difficult to overestimate the accomplished transition to electronic payment systems, the use of electronic digital signatures in banks’ document flow, the use of electronic money or digital currency. However, it is extremely important to focus not only on the positive aspects of new technologies, but also on the safety issues of their use, especially when it comes to money. It is quite relevant to study the issue of digital currency security. The aim of the article is to study the applied security technologies for using digital currency on the example of Bitcoin cryptography and the security mechanisms of a decentralized distributed block chain network, on which Bitcoin cryptocurrency is based. Materials and methods. The information base of the study was the work of foreignscientists, reports of financial institutions [5], electronic resources, raising the problems of using the digital currency. To achieve this goal, scientific methods of theoretical analysis, synthesis and analogies are used. Results. Decentralization increases the level of cryptocurrency security, since if it is still possible to allow malicious intervention in the work of a single central authority, then any attempt to make changes to individual nodes of a distributed system is simply meaningless. Thus, the decentralization and application of a distributed registry in accounting for cryptocurrency is an important security aspect of the cryptocurrency itself. From the point of view of personal data protection, the anonymity of cryptocurrency can also be considered as an element of security technology. Cryptography as a security mechanism in the cryptocurrency payment system is used, firstly, at the stages of storing and transferring cryptocurrency, and, secondly, it is used when forming a distributed registry of transactions stored in blocks. In the first case, the modern cryptography is used to implement digital signature technology and classical cryptography for the possible protection of electronic purse store and transaction traffic. Conclusion. The use of modern cryptographic methods for the new digital currency provides the necessary level of security against possible hidden and open fraudulent actions at all stages of the life cycle of cryptocurrency: generation, transmission, storage. The use in the payment system cryptocurrency the peering architecture of the distributed nodes and technology block chain significantly increase the security of the use of cryptocurrency.
Authors and Affiliations
Valery PASHORIN
Keywords
Related Articles
- EP ID EP615971
- DOI 10.31617/zt.knute.2019(104)08
- Views 123
- Downloads 0
BUDGET STRATEGY FOR SOCIO-ECONOMIC DEVELOPMENT OF THE COUNTRY
Background. Modern financial science focuses on the study of the impact of institutional and macroeconomic factors on fiscal policy, which should consider the appropriate institutional conditions of the development of cy...
The constitutional and legal status of the Ukrainian people
Background. Awareness of its constitutional and legal status is an important element in the formation of the Ukrainian people as a self-dependent and independent, in the process of building Ukraine as a democratic and le...
LEGISLATIVE SUPPORT OF NATIONAL SECURITY
Background. In modern conditions of Ukraine’s formation as an independent, democratic and sovereign state there is an urgent need to rethink approaches to national security of Ukraine and its support system. The task of...
UKRAINIAN-POLISH TRADE RELATIONS: RETROSPECTIVE ANALYSI
Background. It is important to consider the issue of developing trade relations between the countries in the historical retrospective, which enables, based on the results of the study, to identify the long-term trends of...
SYNERGY AS A FACTOR OF THE EFFICIENCY OF M&A AGREEMENTS
Background. In scientific discussions on the implementation of the integration processes one of the most complex and controversial is the question of assessing the effectiveness of mergers and acquisitions, which leads t...