Learn More About Where Gate.io Security Comes From

TL: DR

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- Decentralization is not equal to absolute security.

- As an established exchange with a stable operation for 9 years, Gate.io has always been the protector of user asset security.

- Regardless of login, transaction, cash withdrawal and other operations, Gate.io provides more than ten kinds of multiple security solutions to achieve all-round active or passive protection.

- All website data of Gate.io is transmitted through encrypted Transport Layer Security (TLS) connection (HTTPS).



Introduction

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As a decentralized product of blockchain, cryptocurrency has removed the control of the so-called central bank and evolved into a convenient trading mode with "peer-to-peer" technical characteristics. According to media data, nearly 300 million people worldwide will invest in cryptocurrencies in 2022. Presently, the total market value of cryptocurrency is nearly $900 billion, which is close to TESLA INC, the sixth listed company in the world with a total market value of $1,114 billion. It can also be seen that there is great room for the development of the crypto market in the future.

However, decentralization is not equal to absolute security. The recent Three Arrows Capital settlement, FTX exchange crash, Crypto.com platform fluctuations, and various events, such as the loss of $100 million of cryptocurrency due to hackers' invasion of the Binance Exchange, also represent that the asset security of cryptocurrency will still have potential security risks without compliance supervision. This is also the part that each investor needs to focus on when investing.


Gate.io Has Maintained Safe and Stable Operations for 9 Years

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As the only trading platform in the world that has invested hundreds of millions of dollars to provide "security and legal fund" for user asset security, Gate.io is also one of the trading platforms with the longest history and largest trading volume in the world. Knowing the importance of blockchain asset security, Gate.io always puts user asset security first and ensures user asset security by means of centralization and decentralization (Gatechain security solution) by investing much capital.

As an established exchange with a stable operation for 9 years, Gate.io has always been the protector of user asset security. Whether from the perspective of platform security, account security, and asset security, Gate.io has always been committed to the user's point of view and has lived up to the trust of every user.


System Security

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Since the establishment of Gate.io in 2013, capital security and user data security have been the top considerations of the platform. Gate.io adopts a self-developed digital asset trading system, each module iterates independently, and protects every transaction of users through professional company penetration testing and annual security audit.

All website data of Gate.io is transmitted through encrypted Transport Layer Security (TLS) connection (HTTPS). And use a Web Application Firewall (WAF) to deal with illegal intrusion, data tampering, and vulnerabilities. When threats are found, the firewall will automatically open.

The front end of the system uses Cloudflare Firewall Enterprise Version to detect malicious traffic and hacks and adopts a Completely Automated Public Turing test to tell Computers and Humans Apart (CAPTCHA) to prevent malware. For DDoS countermeasures, Gate.io continuously improves the anti-DDOS attack mechanism to achieve self-evolution of the platform through four steps of detection, response, rout, and record.


Account Security

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Since 9 years ago, Gate.io has always been one of the safest exchanges in the world. It has provided more than ten kinds of multiple security schemes for login, trading, cash withdrawal and other operations, realizing all-round active or passive protection.

Asset Security

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Gate.io wallet adopts institutional-level, multi-signature, and multi-coin wallets. Under the condition of offline security, transfers can be completed only after m-of-n authorization is strictly carried out. The multi-signature scheme also effectively avoids the loss of assets due to the loss of a single private key.

During the withdrawal operation, there will be at least two kinds of multiple security authentication. The withdrawal can only be performed after the authentication is completely passed. After a password reset and other security settings are changed, users will not be able to withdraw cash within 24 hours. And verify your operation intention in the form of SMS or email. This is an additional step to prevent hackers from withdrawing funds by modifying security settings.

Gate.io's Approach to Compliance Supervision

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The rapidly developing crypto market, as a product of decentralization, is one of the biggest features of cryptocurrency. However, this has also become a hidden danger for some criminals to use loopholes for hacking, increasing on-chain criminal activities in the field of cryptocurrency.

In order for users to validate that 100% of their assets are indeed stored in the Gate, Gate.io proposed the scheme of using Merkle tree + third-party audit and hired an independent virtual currency accounting audit company Armanino LLP, a well-known American audit company, to help with the audit.

Armanino LLP is a leading auditing company in the United States and a global leader in digital asset solutions. As the world's first trading platform that promises to provide 100% margin, Gate.io has already started to work closely with Armanino LLP audit company in 2020 to provide professional and reliable asset verification services for Gate.io users in the form of open source, openness, transparency, blockchain signature, and Merkel tree.

What Is 100% Margin

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In the centralized trading platform, the assets of each user are recorded through the account book in the database. How to safely prove that the platform keeps all users' assets intact is a problem for the platform to prove itself.

Gate.io stores the account asset hash value of each user in the leaf node of the Merkel tree. Everyone can audit the total amount of his/her assets stored in the Merkel tree leaf node through a third-party organization with audit qualification to verify whether his/her funds are included in the asset Merkel tree. If the total amount of verification is greater than or equal to 100%, it will prove that the platform has saved user funds in good condition, which means that the platform provides 100% margins for the corresponding assets.


Why 100% Margin is So Significant

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Because it is difficult for cryptocurrency trading platforms to be trusted by users if they want to prove that they can keep users' assets in good condition and will not misappropriate users' reserves privately. If the platform can prove in an effective way that its effective user margins are not less than the total amount of funds owned by platform users, it can eliminate users' doubts, gain users' trust, and ensure the stable and healthy development of the platform.

If the platform can provide 100% margin, it indicates:

- Sufficient fund reserve of the platform
- Improvement of user trust
- Effectively ensure the security of user assets
- Centralized withdrawal of 100% cashed assets

The features above are what the Gate.io platform can do, and they are also the confidence in the security protection of user assets.

For more details, please refer to What Is the Significance of Introducing Third-party Audits to the Exchange? Understand What Proof of Margin Is



Conclusion

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Security is always the top priority for cryptocurrency exchanges and is also the primary consideration for users when choosing investments or transactions. After 9 years of trials and hardships, the Gate.io platform has stood firm, not only because of the trust and love of tens of millions of users, but also because of the determination to constantly improve and optimize its own platform to live up to the trust of every user. On the way forward, Gate.io walks with you.



Author: Gate.io Researcher Rena W. Translator: Joy Z.
This article represents only the researcher's views and does not constitute any investment advice.
Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced.
In all other cases, legal action will be taken due to copyright infringement.