As the stablecoin ecosystem continues its dramatic expansionand governments further explore the potential of CBDCs (Central Bank Digital Currency), several crypto wallet trends have begun to emerge. And while the impact of each is uncertain today, each will have an undeniable influence moving forward.
The Future is Non-Custodial
Cryptocurrency exchanges have a long, well-documented history of security breaches. Because exchange platforms assume custody of cryptocurrency deposits, user private keys are made vulnerable - an arrangement often exploited by nefarious market players. In 2018 alone, a record total of $865 million was lost across six exchanges following hacks - more than double the amount lost in 2017.
According to the Chainalysis 2020 Crypto Crime Report, 2019 saw more cryptocurrency hacks than any other year. However, of the 11 that occurred, none were comparable to the value of past heists. Despite total losses dropping significantly to $283 million in 2019, these losses remain understandably startling to both investors and lawmakers.
As non-custodial storage solutions, crypto wallets and decentralized exchanges (DEX) bolster security. In short, users can choose to keep their private keys to themselves, retaining complete control over their crypto. And because the vast majority of stolen funds originate from exchanges, crypto users are certain to leverage added security, such as CryptoDefender, for these platforms moving forward.