Let's assume that Tom is sending 50 btc to Alex, some blockchain record will not indicate Tom as the sender while still others will indicate a fake identity of Tom. This is usually represented by a string of codes which makes it difficult to comprehend the true identity of the sender and the receiver of data.
Consequently, many governments particularly the Federal Government of Nigria(FGN) fear that someone can move huge sum of money stolen from private banks or government treasury to a crypto wallet without being able to trace whom the culprit is. Hence the governor to the Central bank of Nigeria issued statement that impeded private banks to facilitate crypto transactions.
However, has that not exposed the magnitude of insecurity associated with fiat currencies held in conventional banks' account?
Cyber criminals popularly known as 'Yahoo Boyz' in Nigeria can with a laptop from a remote location in a room break into a bank's data base and transfer huge amount money into another bank's account without being caught.
Many Nigerians are aggrieved that they get debit alerts of transactions they have not iether initiated or authorized.
I myself can attest to this because on several occasions, I have recieved calls from some of this cyber criminals. Some would provide my full personal details even though I have not by any means revealed my full personal details to any one. Like my BVN, date of birth, full name etc.
Concern has also been raised that these hackers could be bankers or be partnering with bankers.
For the fact that people's money in the bank are stolen, does that not reveal the inefficacy of conventional banks? They are found wanting in Keeping customers' personal date private and secured.
WHY THE CYBER THEFT?
Crime of all sorts did not start today even financial crime. It is dated way back since the beginning of human history. Before the advent of internet, fintech and lately cryptocurrency in 2009, there have been Cyber Theft, financial crimes and embezzlements unmitigated and covered-up. When internet and fin-tech started flourishing, crime grew it's own branch 'Cyber-Crime, Financial Crime.
But why this is hampering conventional banks a great deal is because they have one backend for data base management. That is to say that they have not started to use blockchain technology for recording, storing and securing data.
SOLUTION:
Since Cybercrime has become the order of the day, posing danger to assets in banks and government's treasury, is outright ban on cryptocurrency the way forward, or regulation of crypto activities the solution?
The best way to fight a fire outbreak successfully is to overcome the causes that fuels the fire. Now the fire is 'cybercrime' and the cause that fuels it, is what?
Cryptocurrency? No! Fintech? No! Internet? No! It is weak and inefficient 'Data Based Security Mechanisms'.
Blockchain Technology however, offers a much better way of recording, storing, and securing data without the need of trust (trustless). Blockchain Technology uses multiple computers all over the world that are connected together for recording, storing, and securing data immutable or hack free. Hackers or cyber financial criminals can raid a single computer but they cant successfully raid multiple computers at a time. This would, to a reasonable degree quench the cause (Inefficient data Base Security Mechanisms) that fuels the fire outbreak (Cybercrime).
Cryptocurrencies run on the blockchain. One of the major reasons why many people are turning to crypto for business, assets and investments, is due to massive security values and standard that blockchain Technology offers. Yes it protects people's data and keeps them private.
Although, cryptocurrency by nature are volatile (ie their price fluctuates rapidly), but the units of crypto one hold in his wallet remains the same. For example, if Alex holds 50 btc in his wallet, it is always 50 btc. There is no fear that tomorrow a hacker will break in and divert the 50 bitcoin in his wallet. It is virtually impossible unless he himself provides the key to his wallet for hackers.
In terms of Cyber Crime, will cracking down on crypto currencies heighten or lowers the rate of Cybercrime? Or will regulating it, intensifies or reduces the impact of cybercrime?
Please air your feelings in the comment section down below.
PROSPECTS AND CONSEQUENCES
