Analysis of Trading Security of Cryptocurrencies: Evidence from the DAO Hack

Chang Liu

2022

Abstract

Contemporarily, cryptocurrencies (e.g., Bitcoin and Ether) gained more public attention in recent years, which also has financial influences on trading on the blockchain platform. Similar to other emerging digital technologies, safety especially trading and transaction security becomes a significant issue, with the increasing number of users. In this article, it will mainly focus on the cryptos trading security on the blockchain, accompanied by a real attacking case, the DAO hack happened in 2016, to analyze current security strategies on the blockchain platform and the vulnerabilities within the trading and transaction process. Although there are many strategies such as hash function used for digital signature and decentralization to protect the security of users’ privacy and trading’s normal operation, double-spending and multiple withdrawal attack still happen because of the immature mining technology, caused by a long time for miners to validation and add blocks onto the blockchain. To address the issue, some new ways, using emerging computer information technology, to validate transactions can be used to shorten the time and energy consumption, while the users’ actions still considerably contribute to the trading security on the blockchain. These results shed light on avoiding and improving the future environment of blockchain and its development.

Paper Citation

in Harvard Style

Liu C. (2022). Analysis of Trading Security of Cryptocurrencies: Evidence from the DAO Hack. In Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME; ISBN 978-989-758-636-1, SciTePress, pages 504-510. DOI: 10.5220/0012035700003620

in Bibtex Style

@conference{icemme22,
author={Chang Liu},
title={Analysis of Trading Security of Cryptocurrencies: Evidence from the DAO Hack},
booktitle={Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME},
year={2022},
pages={504-510},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012035700003620},
isbn={978-989-758-636-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME
TI - Analysis of Trading Security of Cryptocurrencies: Evidence from the DAO Hack
SN - 978-989-758-636-1
AU - Liu C.
PY - 2022
SP - 504
EP - 510
DO - 10.5220/0012035700003620
PB - SciTePress