Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Tuesday 30 January 2018
AP Explains: Why are crypto exchanges vulnerable to hacks?

By YOUKYUNG LEE its security to prevent a re-
AP Technology Writer currence.
SEOUL, South Korea (AP) Details of how the losses
— Blockchain technol- happened or who might
ogy can make transac- be behind them are still un-
tions safe and secure, but clear.
crypto-currency exchang- The Mt. Gox case put many
es that trade bitcoins and Japanese investors off bit-
other virtual currencies coin, at least for a time,
that are based on this and prompted authorities
technology have been to impose more regula-
hacked because they are tions. Chainalysis estimates
not working on secure net- that the bitcoins lost at Mt.
works, experts say. Late last Gox were worth $7.5 million
week, the Tokyo-based at the time the coins were
Coincheck exchange re- stolen but now worth near-
ported a 58 billion yen ly $10 billion as of January.
($530 million) loss of crypto IDENTIFYING HACKERS
currency due to hacking. It’s possible to trace block-
The Coincheck exchange chain transactions but not
has halted trading of the to identify the owners of
stolen currency, NEM and the “wallets” where the
restricted dealings in most crypto currencies are kept,
other crypto currencies. says Choi.
It was the second major “It’s the biggest weak-
hacking assault on a Japa- A huge advertisement of Bitcon is displayed near a train station in Tokyo Monday, Jan. 29, 2018. ness,” said Choi. “You can
nese crypto exchange af- Associated Press track the blocks based on
ter the Mt. Gox debacle in actions they make and not use the same technol- puter software known as the records in the blocks
2014. Here’s a look at the act as personal digital sig- ogy, says Simon Choi, a di- ransom ware and hacks, but you cannot tell whose
security concerns surround- natures. Any alteration will rector at anti-virus software increased at least 30 times wallet it is. They went to
ing crypto currencies. make those signatures in- company Hauri Inc. South to $95 million in 2016 from hackers’ wallet but if we
WHAT IS BLOCKCHAIN? valid and alert others in the Korean exchanges report- at least $3 million in 2013. don’t know who the hack-
As its name implies, block- network to the changes. edly get poor reviews for The attack on Coincheck, ers are we cannot catch
chain is a chain of digital Blockchains are kept in cyber security, and officials which did not affect its them.”
“blocks” that contain re- so-called “peer-to-peer” have said those that fail holdings of bitcoin, was the The rising hacks have
cords of transactions, says networks that are continu- to beef up such precau- second major hacking as- prompted the crypto com-
Curtis Miles at IBM Block- ally updated and kept in tions will face fines. “If se- sault on a Japanese cryp- munity to seek ways to halt
chain. synchronization. It would curity on the exchanges’ to exchange after Mt. Gox, the bad guys.
Each such block is con- require huge amounts of is not secure, their curren- the world’s largest bitcoin South Korea’s government
nected to those before computing power to ac- cies can be stolen,” Choi trading exchange before is trying to make crypto
and behind it, making it cess every instance of a said. “If the exchanges are its collapse, lost hundreds transactions traceable by
difficult to tamper with certain blockchain and al- to play their intermediary of thousands of bitcoins implementing a system
because a hacker would ter all its blocks at the same role, they should be as safe likely stolen through hack- that links crypto accounts
need to change the block time. as banks and strengthen ing. to existing bank accounts
containing that record and POOR SECURITY their security.” Coincheck has apologized that have been vetted by
all those linked to it to avoid While a blockchain can RISING HACKS and promised to reimburse financial institutions.
detection. The records on be secure, the exchanges According to crypto cur- customers for their NEM Such efforts however will
a blockchain are secured that play a crucial role in rency research firm Chain- losses. It has pledged to not help identify hackers
through cryptography and increasing the amount of alysis, losses of bitcoin, comply with a Financial if they send crypto curren-
network participants have crypto trading, enabling including stealing indi- Services Agency’s order to cies to exchanges outside
their own private keys that bitcoin and other such cur- viduals’ holdings through determine why the losses Korea that do not identify
are assigned to the trans- rencies go mainstream, do scams, malicious com- happened, and improve their users.q

Apple’s stock sinks as high hope for

iPhone X sales fade

By MICHAEL LIEDTKE demand for the iPhone X X is faring should emerge
AP Technology Writer have been swirling for the Thursday when Apple is
SAN FRANCISCO (AP) — past week, contributing to scheduled to release its fis-
Apple’s stock is backtrack- a 6 percent decline in Ap- cal first-quarter earnings.
ing from its recent highs ple’s stock since it hit an all- The period spans from Oc-
amid mounting concerns time high of $180.10 on Jan. tober through December,
that iPhone X sales will fall 18. The shares sank $3.11 to covering the early Novem-
short of the high hopes for $168.40 in Monday’s late ber release of the iPhone X
a device that brought fa- afternoon trading, translat- and the holiday shopping
cial recognition technol- ing into a nearly $60 billion season that typically brings
ogy and a $1,000 price loss in the company’s mar- Apple’s biggest iPhone
tag to the company’s flag- ket value since the stock sales of the year. Apple
ship product line. Specula- last peaked. Concrete evi- didn’t respond to a request In this Friday, Nov. 3, 2017, file photo, customers buy the
tion about disappointing dence of how the iPhone for comment Monday.q iPhone X at the Apple Store on New York’s Fifth Avenue.
Associated Press