{"id":122383,"date":"2017-11-30T12:43:05","date_gmt":"2017-11-30T10:43:05","guid":{"rendered":"https:\/\/mygaming.co.za\/news\/?p=122383"},"modified":"2017-11-30T12:44:01","modified_gmt":"2017-11-30T10:44:01","slug":"how-luno-keeps-your-cryptocurrency-safe","status":"publish","type":"post","link":"https:\/\/mygaming.co.za\/news\/business\/122383-how-luno-keeps-your-cryptocurrency-safe","title":{"rendered":"How Luno keeps your cryptocurrency safe"},"content":{"rendered":"

Luno recently told MyBroadband it was trading over\u00a0700 Bitcoin per day\u00a0<\/strong><\/a>during November.<\/p>\n

During the period, the exchange also launched support for Ethereum \u2013 allowing\u00a0customers to purchase and sell Ethereum for rand.<\/p>\n

As Bitcoin and Ethereum run on separate Blockchains, and trading volumes are growing as the currencies gain in popularity, Luno has to ensure it keeps its systems secure and user-friendly.<\/p>\n

The exchange offers users\u00a0a wallet service to store their Bitcoin and Ethereum, but\u00a0does not provide customers with their own private keys.<\/p>\n

In this way, it works more like a traditional bank than a personal decentralised wallet.<\/p>\n

Luno\u2019s Werner van Rooyen said the same\u00a0security principles<\/strong><\/a>\u00a0apply to its Ethereum and Bitcoin wallets, which includes\u00a0cold-storage wallets and multi-signature keys.<\/p>\n

Blockchain basics<\/h3>\n

Both the Bitcoin and Ethereum blockchains are built on the basis of public-key cryptography, in which each node or user on the network is given their own public and private key.<\/p>\n

These keys are usually long alphanumeric strings and are used to verify your identity on the blockchain\u2019s public ledger.<\/p>\n

Your public key is your address, which users can send cryptocurrency to.<\/p>\n

Your private key gives you access to your wallet and verifies your actions on the blockchain. Your private key is also used as a digital signature to sign transactions, send data, and interact with the ledger.<\/p>\n

If your private key is compromised, your wallet and funds are in danger. If you lose your private key, you cannot access your funds.<\/p>\n

Luno does not provide customers with the private key to their wallets, and instead it stores them securely in \u201cdeep freeze\u201d vaults.<\/p>\n

The keys also require multiple signatures to be used, and only certain individuals have access to the vaults.<\/p>\n

Cold and hot<\/h3>\n

As Luno functions as an exchange and wallet provider, customers require quick access to their funds to trade.<\/p>\n

For this reason, Luno uses a combination of cold-storage wallets and a hot wallet.<\/p>\n

Cold storage means the private keys are disconnected from the Internet and require physical intervention to interact with, while a hot wallet is constantly connected to the blockchain.<\/p>\n

A balance of funds is maintained in Luno\u2019s hot wallet to provide liquidity \u2013 giving customers access to their funds while maintaining security.<\/p>\n

The only way to spend Bitcoin or Ethereum from Luno\u2019s hot wallet is if Luno and its co-singing partner service authorise the transaction using multi-signature keys.<\/p>\n

The co-signing partner used by Luno also offers additional security measures like daily and lifetime key spend limits.<\/p>\n

Luno further recommends that customers implement two-factor authentication on their accounts as a user-side safety measure.<\/p>\n

Now read:\u00a0Sending Bitcoin to the wrong address isn\u2019t always the end of the world<\/a><\/strong><\/h4>\n","protected":false},"excerpt":{"rendered":"

Luno recently told MyBroadband it was trading over\u00a0700 Bitcoin per day during November.<\/p>\n","protected":false},"author":226,"featured_media":102667,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[13160,24253,24389,25457],"class_list":["post-122383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-bitcoin","tag-cryptocurrency","tag-ethereum","tag-luno"],"_links":{"self":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/122383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/users\/226"}],"replies":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/comments?post=122383"}],"version-history":[{"count":0,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/122383\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media\/102667"}],"wp:attachment":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media?parent=122383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/categories?post=122383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/tags?post=122383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}