Rebuilding Trust in Cryptocurrency Exchanges after Cyber-attacks

Marella, Venkata; Roshan, M Dennis; Merikivi, Jani; Tuunainen, Virpi Kristiina

doi:10.24251/hicss.2021.684

Cited by 8 publications

(6 citation statements)

References 21 publications

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“…For instance, Shanaev et al (2019) show that majority of the attacks on blockchain leads to a decrease in coin prices, and the coin prices do not recover to pre-attack levels one week after the attack event. Marella et al (2021) argue that whenever these cyber-attacks occur, customers may lose their trust not only on a given cryptocurrency exchange but also in cryptocurrencies in general. Mills and Nower (2019) observe a correlation between trading high-risk stocks and trading cryptocurrencies.…”

Section: Risks Of Cryptocurrenciesmentioning

confidence: 99%

Central Bank Digital Currency Can Lead to the Collapse of Cryptocurrency*

Ozili

2023

Digital Transformation, Strategic Resilience, Cyber Security and Risk Management

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Cryptocurrencies have become popular. Economic agents use private digital currency, such as bitcoins and other cryptocurrencies, to make payments and it pose a threat to fiat paper currency. Central banks have begun to respond to this threat. They realize that they need to join the race to offer a digital currency and dominate the digital currency landscape which can lead to the collapse of most private digital currencies that are not issued by a central bank or a monetary authority. In this paper, I show how the issuance of a central bank digital currency can lead to the collapse of private digital currencies such as bitcoin. I argue that central banks will leverage on their monetary powers, and the trust that citizens have in government-backed money. This may give central banks strong incentives to issue a central bank digital currency. The issuance of a central bank digital currency can erode trust in cryptocurrencies, and lead to lack of trust in cryptocurrency, thereby leading to the collapse of cryptocurrencies although not immediately.

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Section: Risks Of Cryptocurrenciesmentioning

confidence: 99%

Central Bank Digital Currency Can Lead to the Collapse of Cryptocurrency*

Ozili

2023

Digital Transformation, Strategic Resilience, Cyber Security and Risk Management

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“…According to Alleyne and Broome (2011), people differ in terms of their risk propensity, which is the degree to which they are willing to venture into unknown territory or engage in risky activities. Using cryptocurrency exchange platforms can be considered a risky activity because of the potential of losing money by investing in volatile cryptocurrencies (Marella et al, 2021).…”

Section: Perceived Risk and Risk Propensitymentioning

confidence: 99%

Determinants of Cryptocurrency Exchange Adoption

Illia

Lawson‐Body

Lee

et al. 2023

International Journal of Technology and Human Interaction

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Cryptocurrencies have become a global phenomenon, and the number of registered users of cryptocurrency exchange platforms has grown worldwide. However, only a small number of the registered users are active users that engage in actual transactions. In this study, the authors used a multi-theory approach to identify the key factors of the adoption of cryptocurrency exchanges and to develop a conceptual model that would have a potentially high explanatory power. The proposed model emphasizes the role of psychological innovation resistance, functional innovation resistance, technology readiness and trust, perceived risk and risk propensity, subjective norms, and critical mass of users. The authors discuss the model along with the research propositions it implies and the theoretical and practical implications of the study.

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“…Among these, assets that are highly accessible for the attacker and tend to keep the attacker's anonymity will be the most targeted [16]. Both BTC and ETH fulfil these characteristics and are already becoming a prime target for cyber-attackers, in particular through crypto-currency exchanges [17]. Intentional risk managers need to identify which assets are the most coveted objectives for the attackers so that they can protect them more effectively.…”

Section: Intentional Risk Managementmentioning

confidence: 99%

Modeling Bitcoin plus Ethereum as an Open System of Systems of Public Blockchains to Improve Their Resilience against Intentional Risk

et al. 2022

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In this article, we model the two most market-capitalised public, open and permissionless blockchain implementations, Bitcoin (BTC) and Ethereum (ETH), as a System of Systems (SoS) of public blockchains. We study the concepts of blockchain, BTC, ETH, complex networks, SoS Engineering and intentional risk. We analyse BTC and ETH from an open SoS perspective through the main properties that seminal System of Systems Engineering (SoSE) references propose. This article demonstrates that these public blockchain implementations create networks that grow in complexity and connect with each other. We propose a methodology based on a complexity management lever such as SoSE to better understand public blockchains such as BTC and ETH and manage their evolution. Our ultimate objective is to improve the resilience of public blockchains against intentional risk: a key requirement for their mass adoption. We conclude with specific measures, based on this novel systems engineering approach, to effectively improve the resilience against intentional risk of the open SoS of public blockchains, composed of a non-inflationary money system, “sound money”, such as BTC, and of a world financial computer system, “a financial conduit”, such as ETH. The goal of this paper is to formulate a SoS that transfers digital value and aspires to position itself as a distributed alternative to the fiat currency-based financial system.

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Rebuilding Trust in Cryptocurrency Exchanges after Cyber-attacks

Cited by 8 publications

References 21 publications

Central Bank Digital Currency Can Lead to the Collapse of Cryptocurrency*

Central Bank Digital Currency Can Lead to the Collapse of Cryptocurrency*

Determinants of Cryptocurrency Exchange Adoption

Modeling Bitcoin plus Ethereum as an Open System of Systems of Public Blockchains to Improve Their Resilience against Intentional Risk

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