Blockchain has transformed many industries, from healthcare to real estate to banking. But despite the “unhackable” hype, flaws in Blockchain technology undeniably weaken its goals of bringing greater security, transparency and privacy to the world. Between January and November 2022, hackers stole $4.3 billion worth of cryptocurrency — marking a 37% increase from 2021. It was the worst year for crypto fraud, and the outlook still appears bleak. For many years, experts have touted zero-knowledge cryptography as a potential game-changer for Blockchain applications. In 2023, that theory will be put to the test — but will it be enough? Blockchain technology aims to solve problems associated with digital currencies. The immutable ledger of transactions is connected by digital cryptography and shared publicly across a decentralized network of computers around the world. It’s supposed to be uncrackable. That’s the theory. But in reality, Blockchain is an imperfect system. Despite the system’s promise of virtually impenetrable security, hackers routinely steal millions from users of decentralized finance (DeFi) platforms through phishing scams, routing attacks and endpoint vulnerabilities. Ironically, cyber criminals defraud lenders and investors by using the very anonymity that offered investors more control over their finances. The Federal Trade Commission (FTC) reports that cryptocurrency accounts for one out of every four dollars lost to online scams — more than any other payment method.
Full critique : Can Zero-Knowledge Proofs Save Cryptocurrency?
