How Can Cryptocurrency Exchanges Protect Themselves from Attacks on Low-Difficulty Coins?
Exchanges can implement higher confirmation requirements for deposits of low-difficulty coins, particularly against 51% attacks. They should monitor the network's hash rate and look for sudden, suspicious spikes.
Implementing a time-lock on withdrawals after a deposit can mitigate double-spending risks. They may also delist coins that pose an unacceptable security risk due to extremely low difficulty or centralization.
Strong internal security protocols are also essential.
Glossar
Higher Confirmation Requirements
Security ⎊ Higher confirmation requirements are a critical security measure implemented by cryptocurrency exchanges and platforms to protect against double-spending attacks and ensure transaction finality.
Cryptocurrency Exchanges
Exchange ⎊ Cryptocurrency exchanges function as marketplaces facilitating the trading of digital assets, bridging traditional finance with decentralized networks.