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?
Malmesbury, Wiltshire, UK