Is Celo the future of financial security?

 

Photo by Markus Spiske on Unsplash

The last thing anybody needs to worry about is their money being stolen. Unfortunately, hacker groups such as MoneyTaker have persisted and raised concern given their ability to adapt and exploit local and centralized banks in the U.S, Russia, and the UK.

It's not as if banks and financial organizations haven't strengthened their digital infrastructure. Rather, hacker groups have figured out weak spots and breaches in these systems. One of them includes taking advantage of the authentication system as they can replicate documents. To conceal their fraudulent behavior, they modify the transaction history and payment details. 

Companies that depend on traditionally centralized systems similar to that of a bureaucracy are vulnerable to attacks. In response, they are looking to hire more employees capable of fending off these attacks. This leads to a multitude of problems:

First, companies become suspicious of customers. Imagine trying to deposit money from your local Wells Fargo and having to answer screening questions about your financial information? Although this scenario may not actually be companies' solutions in the future, this is the direction that we are heading.

Second, people become suspicious of companies. I know for sure that I wouldn't put my money in a place that is prone to cyber attacks. I need the assurance that my money will stay put. What else is the interest for!

Third, it's impractical. A recent MediaPro survey of 1,000 U.S. finance employees concluded that 79% of them show a lack of skill and readiness to fend off these cyber security attacks. And it's probably because companies aren't training their employees in their areas or upping their paychecks.

Hacker groups may not be committing fraud against every financial company out there, but the threat they pose leaves employees and customers around the world fearful of engaging in a transaction. 

Luckily, Celo has taken a new approach to financial transactions with a goal to enable financial prosperity and security for everyone. Celo is a rising company that utilizes Ethereum blockchain technology to securitize financial exchanges, and it does a great job in addressing the threat posed by hacker groups.

Since blockchain technology is decentralized, hacker's can't single out small communities and local banks unnoticed, nor can they exploit regional laws that may have different regulations in terms of financial security. This type of software is also a self-regulating one that isn't muddled by political gridlock, and can thus better serve people. Moreover, decentralized software focuses on digital infrastructure rather than physical infrastructure, so the classic break-in, steal, get out trick won't work. Forging physical documents won't do hackers any good either if everything is managed via digital cryptocurrencies.

Cryptocurrencies are very new software technologies that are being widely adopted and built on by other rising organizations such as IBM and BitMex. The reason why they are so popular is because transactions can happen between virtually anyone, encryption ensures that peoples' accounts and transactions are safe, past transactions can't be altered, and qualified validators around the world review and authenticate transactions by solving complicated math problems. There is a lot more in terms of encryption technology that makes blockchain-based financial systems very promising, but the reasons listed above probably resolve 99.9% of traditional cybersecurity threats.

Celo is the future of financial trade as it encourages local, national, and international trading with an emphasis on digital security. Given the novelty of this technology, their is still a lack of public trust and an uncertainty as to whether these systems are stable if used by more people. 

Celo has partnered with the Blockchain for Social Impact Organization (BSIC) to introduce their technology to more people. The BSIC Incubator Event, a "startup" competition dependent on Celo's blockchain technology, was held earlier this year. The event succeeded in spurring innovation and facilitated collaboration amongst around 300 developers. 

All in all, I'm looking forward to seeing Celo and other financially-focused blockchain organizations become more prominent in the world. 

References:

BSIC Celo Partnership

Celo's Initiative

Hacker Groups: Financial Insecurity

Celo Validators