As of today, Bitcoin now has a new exchange where its virtual currency can be traded, which is now more secure and has been created in response to the existing Mt. Gox vulnerabilities that were exposed over recent months. The new Ruxum Exchange has been created by Chad Pankewitz and his team and has been designed to provide a more secure environment for Bitcoin traders.
The new Ruxum Exchange has been opened into a private beta for the moment and now allows users to buy, sell, and trade both Bitcoin and Namecoin. If you are unfamiliar with either of those two virtual currencies, more information is provided after the jump, together with a video explaining Bitcoin.
Understanding Bitcoin and Namecoin
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for a central authority. It was created by an unknown person or group of people using the pseudonym Satoshi Nakamoto and released as open-source software in 2009. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. The unique aspect of Bitcoin is its anonymity and the security provided by its cryptographic nature.
Tech Crunch explains:
“Bitcoin is an anonymous online currency whose transactions and monetary supply are verified by digital cryptography and maintained by an open-source peer-to-peer network.”
Namecoin, on the other hand, is a fork of the Bitcoin project. It uses the same peer-to-peer network technology to build a decentralized domain name system (DNS). This system is less vulnerable to outages and censorship compared to traditional DNS systems. Namecoin allows users to register .bit domains, which are not controlled by any central authority, making it a more resilient and secure option for domain registration.
“Namecoin is a fork of the Bitcoin project, which uses the P2P network to, instead, build a decentralized domain name system that is less vulnerable to outages. For more on Namecoin, click here.”
Security Enhancements in Ruxum Exchange
The Ruxum Exchange aims to address the security flaws that plagued previous exchanges like Mt. Gox. Mt. Gox, once the largest Bitcoin exchange, suffered from several security breaches that led to significant financial losses for its users. These vulnerabilities highlighted the need for more robust security measures in cryptocurrency exchanges.
Chad Pankewitz and his team have implemented advanced security protocols to ensure the safety of users’ funds and personal information. The Ruxum Exchange employs multi-signature wallets, which require multiple private keys to authorize a transaction, reducing the risk of unauthorized access. Additionally, the exchange uses cold storage for the majority of its funds, keeping them offline and out of reach from potential hackers.
The platform also incorporates two-factor authentication (2FA) for user accounts, adding an extra layer of security. Users must provide a second form of identification, such as a code sent to their mobile device, in addition to their password to access their accounts. This makes it significantly more difficult for malicious actors to gain unauthorized access.
The introduction of the Ruxum Exchange marks a significant step forward in the evolution of cryptocurrency trading platforms. By prioritizing security and user experience, Ruxum aims to restore confidence in the cryptocurrency market and attract a broader audience of traders and investors.
Source: Tech Crunch
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