Letter: Regulators may not clock blockchain security risks

Regarding Gillian Tett’s article “Regulators have cryptos in their sights” (Opinion, February 18), I work in cyber security and underpinning cryptocurrency is the blockchain technology which replaces hierarchical checking and signing off of transactions with a decentralized, mutually agreed, process. No single person or organization has overseer control.

Blockchains are immutable – once an individual user or organization enters data or completes a process, that’s it, done. Blockchains have inbuilt security, but there is a potential risk of a breach where individuals may have compromised security on their own devices while completing transactions.

Unlike a traditional hierarchical corporate financial process, just one lapse in a blockchain member’s security may result in substantial losses for all.

I’m not sure that both customers and regulators are fully cognisant of the full risk?

James Morris
Malmesbury, Wiltshire, UK

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