Cryptocurrency Security Standard (CCSS)

Members of the business and financing industry are no strangers to the viability of cryptocurrencies as both digital exchange mediums and tradable assets. Sure, nothing beats fiat currency when we consider business transactions or the actual financial deals, but the popularity of the digital asset cannot simply be ignored in light of the type of system it runs on.

Highly-democratized, cryptocurrencies usually function through a decentralized system, especially when we are looking into its forerunners, Bitcoin and Ethereum. What this means is that the currencies and those who hold them do not answer to a central bank. It runs on a peer-to-peer system that allows for the members of what is called the Blockchain to validate each transaction made through the sophistication of cryptography. Here, each member would be able to verify a transaction by solving a mathematical formula.

Having said this, it is apparent that delving into cryptocurrencies, despite the risk of hacking as everything runs online, is a highly secured trade. But of course, the question is yet to be accounted for. While the industry is not about to go away any time soon, fact of the matter is, not everyone trusts it. Yet.

This article will discuss what matters on crypto authentication and confidentiality with great regard on standardization of safeguard protocols surrounding crypto storage and trading. We will be delving into the Cryptocurrency Security Standard (CCSS), flaying what it is exactly, what crypto traders and those possibly interested in engaging with crypto-related transactions and dealings are to expect from the apparent and most recommended standardization within the industry.

All About the Cryptocurrency Security Standard (CCSS): Why The Safety Protocols Were Put In Place

With businesses, institutions, and organizations all wary of authorization and the evident things that cryptocurrency dealings simply cannot do, complete acceptance of cryptocurrencies in the trading industry as both an asset and a purchasing medium is delegated in the backburner. True, mainstream knowledge that non-crypto traders hold are limited to the peer-to-peer (P2P) mechanism of cryptography (a system that integrates sophisticated mathematical problems to allow the execution of a crypto transaction). And this only stands for the likes of industry titans, Bitcoin and Ethereum. So what of the obscure ones?

End-users would always have their hands up when the transactions amount to what they are usually used to. Well-informed decisions through research and experience are needed to preserve the integrity of their data and funds, and sometimes, the coins they deal with do not necessarily adhere to already established methodologies. Plenty of coins in the market require more spunk and gimmick. This is where standardization becomes altogether challenging and tricky.

For starters, standardization comes through cryptos that have already been running on ledger systems called “permissioned-ledgers” like Ripple (XRP) for instance. In these environments, permissions remain centralized in the organization that makes use of such. This makes standardization highly attainable.

The implementation of a safety protocol on transactions performed on cryptos simply called CCSS (Cryptocurrency Security Standard), came to function back in 2014, effectively scaffolding how to securely manage cryptocurrencies. At present, the CCSS remains to be industry practice for business entities that handle cryptocurrency wallets.

The CCSS zeroes-in on the storage and management of cryptocurrencies used by an organization. The CCSS was made to heighten existing industry practices and to work hand-in-hand with standards that have already been put in place such as the ISO 27001, PCI, and the like. This is in no way meant to keep these standards in check, let alone run in their stead as the CCSS only guides cryptocurrency wallet. But of course additional requirements are to be put in place within this, thus fortifying what may already be thought secured.

The CCSS has three (3) levels of safeguards that best the one that it had succeeded.

Level 1

This level sees the task of protecting cryptocurrency wallets through strong protocols.

Level 2

The level of security of this phase is greatly enhanced given that it had reached the formalization of procedures for every business practice.

Level 3

Composed of critical actions, a number of actors are needed to unlock top-tier methods on authentication. Here, the data are assured of authenticity with the assets distributed across organizations and geographies.

The Overseers

To assure organizations of the integrity of their funds and data, and that practices are constantly updated, the CCSS is overseen by a CCSS Steering Committee. This committee is composed of individuals who specialize in the development of the cryptocurrency systems.

To further the users’ confidence, the CCSS may also be sanctioned by the Cryptocurrency Certification Consortium (C4). This organizing body was formed with the aim of balancing the otherwise contradictory facets of the cryptocurrency security such as the democratic and private and security and intuitiveness of cryptocurrency systems. C4 offers certifications for professionals who might want to make use of their skills to further the efficiency and security of cryptocurrency systems. The C4 had resolved the dilemma of organizations who hire supposed Bitcoin experts to verify their actual skills that announce their profession. C4 offers a generalized cryptocurrency certification process for assessors of the system to comply with.

Concerns on CCSS Adoption

While the CCSS had been put in place back in 2014, the fact of the matter is, not all organizations that make use of cryptocurrencies adhere to it.

As this is the case, it is not uncommon for systems to suffer from breaches, even exceeding that of Level 3’s restrictions. As such, a number of shady individuals are able to crypto-mechanic parts of cryptocurrency.

If we are to consult an IT professional who does IT audits, he or she would say that following the stringent provisions of the CCSS would help minimize the risks brought about by online frauds.

Given everything that had been discussed within this short feature, it is apparent that adhering to the CCSS should already be integral to those who aim at taking the cryptocurrency trade seriously. On all accounts, the standard should be adopted so as to safeguard not only the hard-earned money that crypto traders have accumulated during their career in crypto trading, but also of the digital asset market and financing industry in general.