The industry that has come under harsh criticism for giving scammers and hackers too much of a space and platform is facing a significant change. A US-based startup is clearing out the flaws of both traditional and current virtual banking.
This year and last year have borne witness to major hacks in the cryptocurrency arena. Only a few will be mentioned here, but enough to give the scope of the problem. After a $31 million hack in late 2018, over $40 million in Bitcoin that was stored in its hot wallet. DragonEx lost $7 million. Cryptopia was hacked for $16 Million when hackers figured out that they were pooling all of their users’ digital assets plus.
All of these Cryptocurrency exchanges have one thing in common. They are all centralized exchanges that store user funds and personal data. They all act as third parties to the users who trust them with their assets. They all collect user information, store that information in centralized servers, hold private key information, etc. Similar to dealing with a bank or other financial institution. All of these traditionally modeled financial service providers have one thing in common. The procedures they use to transact finances are not secure enough. The very nature of their business model precludes them from being hack resistant.
Coin aims to provide its end-users with a completely secure alternative to these centralized systems. Coin is based in the US and is a FinTech startup founded by Microsoft veterans Damon Nam and Byron Levels. They have recently announced their new, completely decentralized, solution.
The Coin Exchange includes in its standard features an all-in-one, cross-chain, P2P decentralized cryptocurrency wallet, exchange, and assistant powered by atomic swaps and artificial intelligence (AI) technology. Coin Exchange has an integrated cryptocurrency wallet for users to store popular digital assets such as Bitcoin, Ethereum, ERC20 supported tokens and more.
Coin Exchange utilizes atomic swap technology for exchanging assets, which replaces the need for any third party involvement as all transactions take place from one blockchain to another, from one user directly to another. This vastly reduces fees and above all else, it is the most secure method of transferring value. In truly decentralized fashion, the Coin Exchange enables users to remain completely anonymous as it does not collect or store user information. It also never acts as a custodian or touches any funds as users are required to manage their own private key. All of this makes Coin Exchange impervious to hacks.
Another of its features is browser extension support for the Internet’s most popular web browsers. This browser extension uses AI technology to quickly execute transactions and provide insights to help users save time and money. The Coin Exchange includes an assistant that can recognize blockchain-related keywords from any webpage. This allows Coin to provide education, insights, or to help consumers execute financial transactions directly from any webpage with an input field. For example, users can send, receive and exchange transactions with the help of the assistant, or by simply typing text commands such as “Send $50 Bitcoin to @cryptojane” in any input field on the Internet, and the user to user transaction takes place directly on the blockchain. What is currently considered a complex task that requires navigating to a company website, can now be completed in a matter of seconds while browsing the web.
“By leveraging emerging technology, we are placing the power back into the hands of the people, and empowering consumers to manage their wealth with an innovative digital assets experience that is simple, secure, and personalized,” says Damon Nam, founder and CEO at Coin.
While the interest in cryptocurrency continues to rise, the blockchain industry is continuously losing consumer trust through hacks and scams that result in millions in lost funds and personal data. The Coin Exchange seeks to resolve this problem by putting the power back into the hands of the consumer, removing human involvement, and facilitating secure financial transactions by way of technology.