What is the security of digital currency
Yin Zhentao, deputy director of the law and Finance Research Office of the Financial Research Institute of the Chinese Academy of Social Sciences, said that digital currency faces two risks. The first is the technical level. Digital currency relies on blockchain technology and a system, which will make it suffer from security impact, such as hacker attacks on computer systems. We have seen many practical problems in this process
Zhao Zhanzhan, a special researcher of intellectual property research center of China University of political science and law, believes that digital currency has anonymity, quickness and irrevocability. In addition, bitcoin and other digital currencies have high circulation in the world, so many criminals use digital currency as a new money laundering channel. Moreover, there are many different ways to realize money laundering through digital currency. Generally speaking, the probability of new money laundering being found and investigated is lower than before. Many countries have no effective means and technology to combat money laundering through digital currency. These factors lead to criminals prefer this way of money laundering
digital currency is a kind of unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form
according to the notice on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China. According to China's digital currency regulatory framework, investors have the freedom to participate in digital currency transactions at their own risk
warm tips: the above information is for reference only. Before investing, it is recommended that you first understand the risks existing in the project, and understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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With the advent of digital currency, the encryption algorithm of currency is becoming more and more important. What are the types of passwords
classical cipher types mainly include transposition cipher and rearrangement of alphabetic order messages. For example, "Hello world" becomes "ehlol owrdl"
Diffie Hellman and RSA algorithms have been widely used except for the first public example of high quality public key algorithms. Other asymmetric key algorithms include Cramer schup cryptosystem, ElGamal encryption and various elliptic curve techniquessome well-known cryptosystems include RSA encryption, Schnorr Signature, El Gamal encryption, PGP and so on. More complex password systems include e-cash system, signcryption system, etc. Now more cryptosystems include interactive proof systems, such as zero knowledge proof, which is used for secret sharing
for a long time, information collection and law enforcement agencies have been interested in cryptography. The importance of secret communication is self-evident. Because cryptography promotes privacy protection, it also attracts great interest of cryptography supporters. Therefore, there is a history of controversial legal issues around cryptography, especially since the emergence of cheap computers makes it possible to widely use high-quality cryptography
nowadays, cryptocurrency transactions are semi anonymous, which makes them very suitable for a series of illegal activities, such as money laundering and tax evasion. However, the proponents of cryptocurrency often attach great importance to the anonymity of digital currency and think that it can protect the privacy of users. Some cryptocurrencies are more private than others
Cryptocurrency is a new type of digital asset, which is based on the network distributed on a large number of computers. This decentralized structure enables them to exist outside the control of the government and central authorities. The term "cryptocurrency" also comes from the encryption technology used to protect the networkblockchain is an organization method to ensure the integrity of digital currency transaction data, and it is an important part of many cryptocurrencies. Many experts believe that blockchain and related technologies will subvert many instries, including finance and law. Cryptocurrencies have been criticized for many reasons, including their use for illegal activities, exchange rate fluctuations and the vulnerability of the infrastructure that underpins them. However, digital currency is also praised for its portability, divisibility, anti inflation and transparency
Digital currency is a double-edged sword. On the one hand, the blockchain technology it relies on has been decentralized and can be used in other fields besides digital currency , which is one of the reasons why bitcoin is popular; On the other hand, if digital currency is widely used by the public as a kind of currency, it will have a huge impact on the effectiveness of monetary policy, financial infrastructure, financial market, financial stability and so on. Specific Wu Xiaoxia:
1. Impact on monetary policy
if digital currency is widely accepted and can play the role of currency, it will weaken the effectiveness of monetary policy and bring difficulties to policy-making
because digital currency issuers are usually unregulated third parties, money is created outside the banking system, and the amount of circulation depends entirely on the wishes of the issuers, which will lead to the instability of money supply. In addition, the authorities are unable to monitor the issuance and circulation of digital currency, which will lead to the inability to accurately judge the economic operation and bring trouble to policy-making, At the same time, it will weaken the effectiveness of policy transmission and implementation
2. Impact on financial infrastructure. The use of distributed ledgers also poses challenges to trading, clearing and settlement, as it promotes the disintermediation of traditional service providers in different markets and infrastructures. These changes may have potential impacts on market infrastructure other than retail payment systems, such as large payment systems, securities settlement systems or trading databases
3. The impact on financial intermediation and financial market in a broad sense. As a financial intermediary, banks perform the ties of acting supervisors and supervise borrowers on behalf of depositors
generally, banks also carry out liquidity and maturity conversion business to realize the financing from depositors to borrowers. If digital currency and distributed ledger are widely used, any subsequent disintermediation may have an impact on savings or credit evaluation mechanisms
4. The impact of security risks and financial stability
assuming that digital currency is recognized by the public, its use increases significantly and replaces legal currency to a certain extent, negative events such as network attacks on user terminals related to digital currency will lead to currency fluctuations, which will have an impact on the financial order and the real economy
in addition, the virtual currency based on blockchain technology is usually held by a few people at the beginning. For example, the first purchase of bitcoin in May 2010 was $25 pizza purchased by 10000 BTC, and the price of each bitcoin rose to $1200 in more than three years by the end of 2013
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Amazon will launch digital currency project in Mexico. Amazon is recruiting software development managers for digital and emerging payments (DEP) to develop new payment procts that will enable customers to convert cash into digital currency
the digital and emerging payments sector intends to launch the proct in Mexico first. The follow-up will be extended to Brazil and India. It is reported that the digital currency project will completely focus on payment services in emerging markets
The contract transaction of digital currency is not safe. There are still many loopholes in the digital currency trading platform, for example, the most common ones are as follows:
1. Denial of service attack
denial of service attack is the most important attack against the digital currency trading platform at present. Through the denial of service attack, the attacker makes the trading platform unable to access normally, while the user cannot accurately distinguish the attack degree, It often leads to panic asset transfer, which brings some loss