Cryptocurrency has become a phenomenon in the global financial market in the past few years as Bitcoin reached a market capitalisation value of US$380 billion. Moreover, cryptocurrencies have had more real-life applications and have become increasingly accepted by global governments and organisations as payments for various purposes such as investment, operations, and transactions.

Venture capital organisations have also invested over US$25 billion in the market with over 12,000 big projects, leading to the formation of dozens of Web3 unicorns. Consequently, there is no surprise that crypto will be here to stay, creating exciting disruptions in the financial market and transforming other aspects of society. 

Challenges with cryptocurrency transactions

Despite the hype towards the security of blockchain technologies that power cryptocurrency development, transactions still pose some vulnerabilities that hackers can exploit unless users take precautionary actions. While blockchain technology produces a tamper-proof ledger of transactions, blockchain networks are not immune to cyberattacks and fraud.

As the values of such cryptocurrencies have increased exponentially, attacks against such transactions have also proliferated. As pointed out by Financial Express, crypto theft reached an all-time high record in 2021 with brazen attempts to breach the crypto-exchange security systems, and hackers stole approximately US$12 billion worth of cryptocurrency. Moreover, many crypto-mining malware attacks have been aimed at Internet users, hijacking the users’ devices and associated resources for cryptocurrency mining.

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Hence, various startups have stepped up to share their challenges when conducting crypto trading. “In my early days of dabbling in cryptocurrencies, I performed most transactions via centralised exchanges. Trading or transacting through centralised exchanges is very convenient. Still, user accounts are often protected by usernames and passwords,” shared by Eric Wong, the Chief Operating Officer of Jupyton, a Singapore-based trust and provenance engine technology startup that specialises in providing security services such as identity authentication, secure digital signing, information security and consent-based data sharing.

He added, “The users do not hold the cryptocurrencies, which are instead in the custody of the centralised exchanges. With more cases of centralised exchanges being hacked or going bankrupt, users also lose their cryptocurrencies along with these centralised exchanges. The message of “not your private keys, not your crypto assets” becomes increasingly important to me as an end-user.”

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Additionally, human errors still occur when it comes to conducting crypto transactions, posing further challenges to transaction security, and becoming a weakness often exploited by hackers. “Hugware protects you from seed phrase errors, which is currently the biggest vulnerability in private key management. With Hugware®, there is no need to write down or keep seed phrases, minimising human errors in the process,” explained Ben Chan, co-founder and director of UKISS Technology.

Hence, cryptocurrency owners should protect themselves from fraudulent risks by taking preventive measures such as sticking to safe and reputable exchanges, using blockchain analytics software and backup, reliable crypto wallet services, etc. Consequently, to enhance protection efficiency while minimising human efforts, an all-in-one product that generates and stores private keys inside the hardware, enabling backups through device pairing will help to set crypto owners’ minds at ease and optimise the values of cryptocurrency applications in the business. 

How UKISS Hugware® helps businesses to enhance the security of cryptocurrency application

Established in Singapore with a team of experienced experts in the field of blockchain, data security and fintech, UKISS Technology is proud to introduce UKISS Hugware®, the innovative crypto hardware wallet that promises to facilitate the mass adoption of Web3 by making it safe and straightforward for the average user to secure their private keys. The product also addresses a significant pain point for cryptocurrency owners: losing their seed phrase error or copying them wrongly. Since the seed phrase is basically the recovery wallet password, losing it can equate to losing their entire crypto fortune in case malicious phishing attacks compromise the account. 

“All hardware wallets currently in the market require end users to copy down a 12-, 18-, or 24-word seed phrase as a backup of their hardware wallet’s private key in case they lose it. This process creates an additional burden to end users because they have to ensure that they copy the seed phrase accurately and protect the seed phrase from being accessed. With a hardware backup through device pairing, there is no chance of human error in copying the wrong seed phrase. It’s also harder to gain access to assets protected by such hardware than assets tied to seed phrases copied to a piece of paper”, expressed Eric Wong regarding the challenges with seed phrases.

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Hugware’s phrase-free feature is made possible through its master seed synchronisation technology, complemented by its patented recovery mechanism with a pair of keys, including the Authentication Key (A-Key) and the Rescue Key (R-Key). “The A-Key generates and stores the master seed or master key and backs it up through synchronisation in the R-Key. The R-Key comes in handy when resetting passwords or restoring the wallet, eliminating the need to input or keep a seed phrase. This feature also makes UKISS Hugware® unique and superior to other products of the rivals”, claimed Co-founder & Director Ben Chan about UKISS Hugware®’s superiority. 

“UKISS Technology is developing a host of software applications and services around Hugware. Together with our partners and solution providers, we want to create tools and utilities to enhance the Web3 experience and make mass adoption feasible. These developments will form the UKISS Decentralised Security Ecosystem, powered by the KISS token,” shared by Ben Chan about UKISS Technology’s upcoming plan.

For more information, please visit UKISS Technology’s website.

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This article is produced by the e27 team, sponsored by UKISS Technology

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