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The future of AI regulation: From data to algorithm deletion
OneTrust founder and CEO Kabir Barday warned that impending regulations may soon require AI companies to...
“[The blockchain] gives a false impression of security for the user, because actually going in and out of the blockchain isn’t secure by nature,” said Pascal Gauthier, CEO at Ledger.
As Pascal pointed out, there is still vulnerability on the front-end, where accessing the blockchain creates an opportunity for hackers.
As recently as February 2022, US$320 million in crypto was lost in a hack on Wormhole (a bridge between consumers and the Ethereum and Solana blockchains). In August 2021, US$600 million in assets were stolen from the Poly Network in the largest crypto hack to date.
[The blockchain] gives a false impression of security for the user, because actually going in and out of the blockchain isn’t secure by nature.
– Pascal Gauthier, CEO at Ledger
These attacks point to a flaw in the concept of decentralised currency and data.
“Before cryptocurrencies, you would trust your bank. You would trust a third party with your money. And security was their problem,” said Pascal.
Now, he says, the onus of security instead falls on the user. Pascal explained: “As soon as you move into crypto, and if you want to hold your crypto, then your security becomes your problem. And so you have to forget everything that you learned about security, and learn again with crypto.”
While this may be feasible for larger entities in the crypto space, it raises questions for retail investors who may not have the capital or know-how to manage all their security themselves.
“If you switch the value of the well [of money] onto a blockchain, and you don’t handle security and cybersecurity well, then hackers will have a feast,” said Pascal.
With all new technology comes new risks. Without an institutional safety net, like that provided by established finance industry practices, the question remains whether small-stake crypto users can stay ahead of the threat.
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