CrowdStrike’s Blackout Vulnerability of Crypto Companies: Analyst Insights
Recent data breaches have raised questions about CrowdStrike's potential impact on various industries, including cryptocurrency companies. Blockchain researcher and former CEO of Nigeria Chiagozzi EU discusses how the outage may affect crypto companies and offers recommendations to mitigate related risks.
Speaking to Cointelegraph, Iwu pointed out that blockchain-based companies, which operate on decentralized networks, are inherently resistant to such disruptions. “For blockchain-based companies, node-based decentralization reduces this risk, so they have nothing to worry about,” he said.
Vulnerable to future issues
However, he warned that centralized crypto platforms may be vulnerable to similar issues in the future. He suggested that institutions may begin to consider decentralized cloud-based architectures such as Internet Computing (Definition) to strengthen their resilience.
Olumide Adsina, an analyst at Quantum Economics, said the incident has made blockchain a viable alternative to conventional IT systems.
Addressing the regulatory challenges stemming from CrowdStrike's blackout, Esu was skeptical of immediate major regulatory changes. He believes that the recent cyber security incident will not lead to major regulatory changes, because it is not enough to make such a response.
According to Issu, existing regulations, data backup and handling requirements already address cybersecurity issues, reducing the need for new regulatory changes.
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However, the concern is the impact on crypto companies' business activities and revenue streams. Esu highlighted the risks, noting that financial losses could arise from businesses or improperly netted financial conditions.
Reduce risks
To mitigate the risks associated with CrowdStrike data breaches, Iwu advised crypto companies to consider alternative endpoint security solutions for CrowdStrike and implement additional layers of security.
Noting that while cryptocurrencies are decentralized, centralized dependencies remain, robust disaster recovery plans and frequent backups are required, Esu advised isolating critical systems and data from vulnerable parts of the network.
Microsoft has dealt with a Windows system outage that has had a significant impact on various critical services worldwide. Affected services include emergency response, financial institutions, airports and broadcasters. However, CrowdStrike's cybersecurity software appears to be the cause of the problem.
CrowdStrike CEO George Kurtz said on July 19 that the company is working to resolve the issue and get businesses back online.
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