Security evolves, and every day reveals new unexpected vulnerabilities discovered by creative hackers.
This is why specialized secure hardware exists - the smaller the set of tasks that a device performs, the smaller the "attack surface," and the less likely that bad actors can find a way to compromise its security.įor a software wallet to be secure, the application has to be built without security flaws, the operating system hosting the application has to be hardened (configured) to thwart attacks, and the computer hardware must be kept physically secure. Not only is the wallet application itself susceptible to attack, but the operating system of the host computer, and even the hardware of the host computer can be the target of attack. However, a potential threat emerges that is present in all applications: software is hard to keep secure. This is convenient, since the blockchain itself is software, and a few mouse clicks in a software wallet can quickly execute a transaction. Many cryptocurrency wallets on the market today are software wallets running on computer systems that are connected to the Internet.
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