Chinese bitcoin exchange, Huobi, one of the world’s largest by traded volume, has sought to reassure clients over the security of their bitcoins in light of the recent Bitstamp incident.
Speaking with DC Magnates, Huobi product consultant, Robert Kuhne, explained that its “hot wallet” employs multiple layers of security, making it a very difficult target:
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“Huobi (including BitYes and BitVC, which are separate platforms operated by the same security team and wallet system) follows the common industry practice of keeping the vast majority of its users’ coins in secure cold storage. For the operational hot wallet, which is used for processing user deposits and withdrawals, Huobi has independently developed its own three-tier security system which includes multi-signature addresses and real-time monitoring and anomaly detection mechanisms.”
Though smaller in scale, the Bitstamp incident has evoked memories of last year’s MtGox nightmare. At the time, Huobi CEO, Leon Li, also sought to reassure the public over its security procedures. He explained to Forex Magnates that wallets can often have small glitches, but it’s the way they’re handled that can make a world of difference.
At one point the world’s largest exchange by volume, Huobi, has yet to report such security incidents. As hackers grow more sophisticated and stronger countermeasures are developed, the successful exchanges of 2015 may well be the ones winning the security game.