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How Tokenization can close the Blockchain Security Gap

Tokenization is an immediate solution that can be leveraged to solve serious gaps in blockchain and cryptocurrency security

blockx network blockchain

Tokenization is an immediate solution that can be leveraged to solve serious gaps in blockchain and cryptocurrency security, improving consumer and institutional confidence in this revolutionary invention.

It is indisputable that blockchain can transform all areas of our daily lives, from buying and selling cryptocurrency to securing essential healthcare records and confirming that beetroot is organic.

However, prior to the transformative wave of this technology can be safely established, there are security gaps- like the vulnerability of private keys- that must be addressed.

The Security Fault with Blockchain

Since fraud, security breaches, and threats have hit high levels across the digital economy, blockchain has been duped as an instant solution to these security issues. However, another problem is, blockchain needs help to be truly secure. Blockchain is designed to be totally immutable via the application of cryptographic hash functions.

This implies that once data is entered into the ledger, it cannot be manipulated. This can be seen as a haven, but, is not secure if someone steals your private keys.

Blockchain utilizes a combination of public and private keys to store and transfer digital assets.

In the traditional banking system, you can think of the public key as your bank account number and private keys as your PIN.

The public key is used to create an address where digital assets are stored in a blockchain network. At the same time, the private key (which is also used to develop the public key) is used to sign every transaction send out and confirm that the user requesting the transaction is the real owner of the assets.

Anyone can access your public key and provided your private keys remain secret; your assets are safe.

When you lose your private keys or are stolen, you end up losing your assets with no means of recovering them.

This is where a significant deficit that dents the security of blockchain technology lies- protecting private keys.

How Tokenization Solves the Issue

Multi-signature improves security by adding extra decentralized keys for wallet recovery and authentication of transactions but still depends on the use of original keys that are susceptible to attack.

Considering the high-value financial and safety-critical nature of some projected applications, nothing should affect data before entering the blockchain.

To address this essential market gap, multi-signature can be combined with Tokenization, as it has proven to mitigate fraud risk and safeguards the underlying assets. Unlike the private keys used to consent crypto transactions, for instance, tokens cannot be used by a third party to carry out transactions if intercepted. This adds an extra layer of user-friendly security that reinforces the immutability feature of blockchain technology.

BlockX Network is a Blockchain technology for Digital Assets, CBDC Settlements and Payments on which software services and applications can be developed. 

BlockX is involved in many different projects and services for blockchain uses and applications. 

Tokenizer is a blockchain investment banking system that champions accessible, transparent, and safe financial services, powered by BlockX

We believe that everyone deserves equal access to investment and fundraising opportunities. That is why we are democratizing access to capital for investors and fundraisers by making investing and fundraising efficient, safe, and accessible to everyone.

Join the whitelist for the upcoming token sale. 

Sign up on BlockX Dashboard for Pre-Sale of Tokens.

If you want to invest in security tokens, sign up for a Tokenizer Investment Account today. Tokenizer Offerings is enabling Alternative Investments of real backed assets on Blockchain.


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Global multi- chain Payment & Settlement Chain for Digital Assets , transforming traditional Finance into the Blockchain era.