How Did Crypto Exchange Security Systems Evolve?

In the first years, crypto exchanges represented an underground space, but one particular platform managed to monopolize the market - Tokyo-based Mt. Gox.

The gradual shift to a more secure ecosystemNewer exchanges learned the lesson from Mt. Gox and started to implement a series of security measures meant to protect clients' crypto funds while maintaining a high degree of liquidity and scalability.

Third-party custodian services became widely solicited by crypto exchanges.

Another security measure that has almost become mandatory with most crypto exchanges is two-factor authentication.

Many crypto exchanges have started to adhere to Know Your Customer practices by requiring clients to pass through a verification procedure that would confirm their identity.

Despite the available security options, crypto exchanges continue to encounter serious troubles to this day.

Decentralized and hybrid exchangesDecentralized exchanges have recently become popular thanks to their status of the most secure version of a crypto exchange.

The goal of hybrid exchanges is to ensure both the security of decentralized exchanges and the flexibility of centralized ones.

While decentralized and hybrid exchanges implement the latest security architectures, this is surely not the end of crypto exchanges' evolution.

If these threats become real, crypto exchanges will have to develop new security solutions.