The success of cryptocurrencies has eclipsed quite a few Internet technologies recently. Everywhere you look, a new electronic currency is launching. From Ripple to Stellar, Moneia, and of course, BitCoin, the players are numerous and growing at exponential rates.
This growth is due in large part to the anti-counterfeit technologies cryptocurrencies are based on. Known by its more commercial term, Blockchain, this model eliminates the insertion of false transactions by keeping a public ledger stored on thousands of randomly selected machines around the world.
Financial institutions are taking serious interest in cryptocurrencies as they are not tied to the economic health of any one country. The political machinations of any government will not sway the legitimacy of these truly international currencies.
Houston, We Have a Problem
However, while the integrity and uniqueness of the transaction can be guaranteed, there remains one weak point: A failure to prove an “intent to transact.”
Most cryptocurrency systems are accessed through proprietary wallet apps. Access to these wallets is based on the decades-old model of username/password. Some may add two-factor authentication to lower the risk, but at the foundation of every user session, security is tied to static credentials that do not prove identity.
True security depends on verifying the identity of the user. While you may say that the username/password combo effectively meets this need, I disagree. Static credentials do not verify the user. They are simply “identifiers” known by the user. Similarly, your house key does not discriminate based on the identity of the holder. Anyone who has it, may enter.
Identity vs Identifiers
And that’s the key. In today’s world, you need to know the difference between “identifiers” and “identity.” As I mentioned before, the only way to GUARANTEE security is to verify a user’s identity. Usernames and passwords do not accomplish this task. After all, anyone armed with that information can impersonate a user perfectly.
How it Works
The only true transaction-creation solution is tied to the concept of CognitiveID. CognitiveID is the NimbusID implementation of the Cognitive Identification security strategy. It is based on the contextual logic every human uses to file information in their brain. I know that sounds very complex, but the concept is actually very simple. Watch this short four minute video to see how it works.
Remember, the only way to verify identity is to teach the server to discriminate and challenge the end user. The result: a qualified manifested legal intent (Intentication) is imputed. This digital transaction, therefore, can stand any legal scrutiny, a failing with current static access authentication.
NimbusID, using our patented CognitiveID model, proves the identity of the user, and therefore, the intent to transact. Because, in the end, the only person reaching into your wallet should be you.