January 2019
Beginner to intermediate
372 pages
11h 17m
English
Content preview from Foundations of Blockchain
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Centralization due to cryptocurrency exchanges
Several cryptocurrencies were introduced soon after Bitcoin gained popularity. Due to the increased popularity of cryptocurrencies, there was a need for an entity where people could buy, sell, and exchange currencies. The entity acted in a similar way to the stock exchange as people placed their asks and bids. People started to trust the exchanges to maintain their private keys on the users' behalf.
Most cryptocurrency exchanges maintain users' private keys on a single server. They stored most of the key information on devices that were connected to the internet. This forced exchange account holders to trust the security of the exchange servers. The security of user accounts heavily relied on ...
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