Post
Topic
Board Bitcoin Discussion
Re: SPECIAL WALLET ADDRESS GENERATOR PROTOCOL FOR EXCHANGES
by
odolvlobo
on 01/06/2019, 03:58:39 UTC
During last month we heard a series of news about exchange hacking from binance to cryptopia(which led to the shut down of this exchange). This thread is open to discuss about how exchange hacking can been prevented or minimize with the aid of Blockchain.

My first suggestion is that there should be a special protocol for generation of wallet addresses used by exchanges. This addresses should have an attributes and methods of preventing hackers from moving fund. Each mining node should act as police that will always check for malicious attack on these address by blocking movement of large amount of BTC from any address own by exchange  and verification should be done before such move.

Perhaps the easiest "special protocol" might be to simply use 2-of-2 multisig addresses. Attackers would have to find two keys instead of just one in order to steal coins from the wallets. On the other hand, I don't think that will really stop them because they probably don't find the keys to access the coins in the first place.

I don't think your idea of miners acting as police is feasible, or even desirable.