Inside The Kore #20: Digital Security

The 20th issue of Inside The Kore is out!

This edition will be focused on Digital Security, so take a look at our digest and have a good read.

What is Two-Factor Authentication?

According to a?recent report published by Microsoft, hackers make 921 attempts to steal a password every second. This means that accounts secured by weak passwords are at an increased risk of falling victim to a hack, which means there has been no better time to focus on securing vulnerable accounts. This is where two-factor authentication, also known as 2FA, comes in.

How Does Two-Factor Authentication Work?

2FA is a security process that requires two different forms of identification from the user to log in. In addition to your username and password, you’ll often be asked to provide a code that may be sent via text or email. By providing this code, you can gain access to your account. Without access to the physical device the code is sent to, the username and password alone are unable to grant you access to your account. This effectively prevents hackers since even if they successfully gained access to your password, that information is essentially useless without the code.?

However, there are also?other types of 2FA, like using your fingerprint to log in or a physical device like a USB to access a digital code.?

Why Use Two-Factor Authentication?

Two-factor authentication is a vital security measure for online accounts because it adds an extra layer of protection beyond passwords. Passwords can be stolen or guessed, but the user cannot log in without access to the second factor. This makes it much more difficult for hackers to access your account.

2FA is also useful for preventing fraud. If someone else tries to log in with your username and password, they will not be able to get past the verification step without access to your device or code. This can help protect against phishing attacks and other types of fraud.

Benefits of Two-Factor Authentication

Two-factor authentication is a great way to increase the security of your online accounts. It gives you an extra layer of protection that makes it much more difficult for hackers to access your data. Here are some of the benefits of using two-factor authentication:

Increased Security:?Two-factor authentication adds an extra layer of security to your accounts, making them much harder to break into. This is especially important if you have sensitive data stored in your account that you don’t want anyone else to access like banking and other financial information.

Easier Logins:?Using two-factor authentication can make logging into your accounts easier. Instead of typing in a complex password every time, you can enter your username and a verification code. This makes it much faster to log in and access your account.

Improved User Experience:?Two-factor authentication can improve the user experience by providing an extra layer of security without adding complexity. It’s easy to understand and use, and it also helps protect your data from unauthorized access.

Two-factor authentication is a great way to increase the security of your online accounts and protect your data from unauthorized access. It adds an extra layer of protection beyond passwords, making it much harder for hackers to access your account. Overall, two-factor authentication is an important security measure that can help keep your data and online accounts safe.

Digital Securities That Help You Navigate the Web Safely

The internet is often difficult to navigate. On one hand, many wonderful resources can be found for educational purposes, you can connect and communicate with anyone anywhere in the world, and new ways to manage financial investments are accessible at the tip of our fingers. But on the other hand, it can sometimes be difficult to determine the legitimacy of a website or investment opportunity. Fortunately, digital securities are changing the way these transactions are carried out, introducing new levels of transparency and trust when implemented correctly

Navigating the Web Safely

Some features that help people navigate the web safely include things like two-factor authentication (2FA) or blockchain-based identity management systems. 2FA is a critical security measure requiring users to provide two forms of identification to log into their accounts. This can be something like a password and a fingerprint or a one-time code that is sent to your phone. Blockchain-based identity management systems work similarly, but instead of using passwords, they use cryptographic keys that are stored on a blockchain. This makes it impossible for hackers to access your account unless they have your private key. Both solutions are important for ensuring that only the account holder can access the account. These tools also make it more difficult for hackers to steal your identity by masquerading as you online. By using 2FA or a blockchain-based identity management system, you can help navigate the web safely and protect your online information.

Digital securities are an essential part of the digital economy, and KoreConX is committed to making them more accessible and easy to use. Our KoreID feature is just one example of how we are innovating in the realm of digital securities. With KoreID, investors can easily and safely provide their information to regulated platforms. As a result, the need for investors to fill out the same information, again and again, is eliminated, saving them time and hassle. With this digital security innovation, when investors are making investments through JOBS Act exemptions, they are less susceptible to fraud. And for issuers, the KoreID gives them peace of mind knowing that they can easily prove that they are in good standing with FINRA and registered funding portals. Digital securities are an essential part of the digital economy, and KoreConX is committed to making them more accessible, safe, and easy to use.

Benefiting from the Innovation of KoreID

KoreID is a digital securities innovation that allows investors to navigate the web safely. The feature is an all-in-one platform that reduces the friction of investors spending time filling forms with the same data repeatedly. Users are allowed to provide certified information with one single click, facilitating a smoother investment or reinvestment. This also reduces the known issues in compliance that broker-dealers face when users “fat finger” their information, accidentally misentering their information.?

The KoreID is a blockchain-based digital identity that is stored on the user’s device and can be used to log in to any site that accepts KoreID. The user’s data is kept secure and only shared with sites that the user has authorized. KoreID is convenient, safe, and easy to use, making it the ideal solution for investors who want to navigate the web safely. Only verified, regulated participants can be allowed to add the KoreID, giving investors peace of mind and allowing companies to easily maintain compliance efforts.

But first, what is a Blockchain?

The simplest and most simplistic definition of a blockchain is that it is a chain of blocks. That’s somewhat like calling a naval destroyer a big boat. This simple definition belies the tremendous power of blockchain to transform whole industries. What gives the blockchain the power? Why do we need it? What caused it to engage the public imagination? Why is it so polarizing? Let’s explore this idea a bit.

From a technical perspective, a blockchain is a list of blocks linked to each other, where each block contains a number of transactions. This is where the story gets interesting. The transaction data is immutably locked using cryptographic methods. It is virtually impossible to modify the data without incurring tremendous expense or collusion between the participants.

There is more to it than that – the blockchain is not just an immutable database. It is also a processing powerhouse. Smart contracts drive the verification of participants and the validation of transactions through a consensus mechanism before cryptographically locking the transaction data into immutable records. Moreover, smart contracts can perform many types of processing tasks just like any computer code, but with the difference that the parties to the transaction and other responsible parties must agree and approve the processing steps. This agreement and approval, formally called consensus, is a powerful concept. We will see why shortly.

There are two types of blockchains, broadly speaking: public and permissioned. In a public blockchain, anyone can participate. The classic examples are Bitcoin and Ethereum. In a permissioned blockchain, those who want to participate must obtain permission. Permissioned blockchains are more appropriate for business use or for those applications where the participants are subject to regulatory oversight. Examples of permissioned chains include Hyperledger Fabric, Corda, and Quorum.

All blockchains have three important components: cryptography, distributed systems, and consensus. Cryptographic methods are vital for storing data securely. Distributed systems technology is essential for processing data and transactions across a widely distributed and loosely coupled group of participants. Finally, consensus ensures that only data and processing that is accepted by the majority of the stakeholders is immutably recorded on the chain.

Bitcoin is the first and most widely recognized application of blockchain technology, but is only an application built on blockchain; Bitcoin is not synonymous with blockchain. There are many other applications built on both public and permissioned blockchains.

To understand the business appeal of blockhcain, consider the simple paper-based ledger. Many decades ago, I had the good fortune of training under an auditor. My task was to examine double-entry accounting ledgers and certify their accuracy. On every page of a ledger there were a bunch of transactions (debits and credits). The column totals were recorded at the bottom, signed by the accounting assistant, and countersigned by the accounting supervisor. These debit and credit totals were carried forward to the top of the next page. New accounting entries were added to the next page. When that page was full, the debit and credit totals (which included the totals from the previous page) were recorded at the bottom of that page. And so on.

If the company that we were auditing wanted to fudge the numbers on one of the accounting entries, it would be practically impossible to do it in an undetectable way (all entries were made in ink). Suppose a crooked accountant managed to do it, they would then have to re-compute the debit and credit totals at the bottom of that page, change the brought-forward totals at the top of the next page, recompute and change the totals at the bottom of the next page, and so on. Tearing out an entire page of entries would also be easily detectable in a paper-based ledger since the method of binding the pages would make it very difficult to tear out the pages in an detectable way. Besides, the page numbers wouldn’t match.

In short, the paper-based ledger was practically fool-proof. Crooked companies found it easier to just maintain two ledgers, one for the auditors and one for the “real” transactions.

When computers and databases became widespread, the paper-based accounting system gave way to an electronic ledger. While system safeguards are built into electronic ledgers, it was much easier to make alterations in the database through “backdoor traps” and by people who had direct access to the systems.

Blockchain technology changed all that. It combined the efficiency of modern computer technology with the fool-proof nature of paper-based ledgers, but in a much more sophisticated way. The whole blockchain (viewing it as a database) is the ledger itself. Blocks that make up the blockchain are like the pages of a paper-based ledger. The blocks are linked together through cryptographic links, similar to the page numbers of a paper-based ledger. Each block records a number of transactions (similar to the rows of accounting entries in a paper-based ledger). Transactions inside each block are cryptographically bound together using sophisticated mechanisms such as Merkle trees.

The analogy to a paper-based ledger makes it easy to understand why blockchains are much more secure than just regular databases. The story gets better: paper-based ledgers, while reasonably secure from tampering, suffer from two disadvantages: they can be destroyed in a fire or stolen, and they represent the “truth” only from the viewpoint of the company that owns the ledger. The counterparties to each transaction (for every debit there is a counterparty creditor, and vice versa) may not agree with the recorded numbers. This raises the thorny problem of reconciliation. Companies spend enormous amounts of time and money performing reconciliation and settlements.

To overcome these two disadvantages, imagine if the ledger has multiple copies stored with distributed parties. Moreover, every block (“page”) of transactions are replicated in real-time. This makes it a real-time distributed ledger. Finally, assume that entries in the ledger can be made only when both (or all, or a majority of) parties agree that the numbers are correct. This is an agreement by consensus, which avoids post-facto reconciliation.

This is why a blockchain is also called a distributed ledger. The benefits are enormous: instant reconciliation, settlement, immutability, multiple copies, and agreement by consensus.

This is only scratching the surface of the benefits of a blockchain. There’s more, with smart contracts that perform distributed processing, removing some of the inefficiencies of intermediary processing. Blockchain technology is really a combination of distributed data and distributed processing. These fundamental capabilities enable many fascinating applications that are not possible through traditional and legacy technologies.

Click here and follow KoreChain on LinkedIn to learn more.

We introduce you to?#KoreID.

A new login interface that is embedded into the investment web pages or funding portals that use the All-In-One Platform. It is important to note that the information is only provided as authorized by the individual when they log in to any of these regulated portals where it is needed.

KoreID eliminates the friction of investors spending time filling and re-filling forms with the same precious data again and again, as investors can provide their certified information with one single click, reducing the risk of corrupted data.

The KoreID is here to end investor fatigue with secure technology, free of charge for companies and issuers.

Go to our landing page right now and learn more.

KoreID

We hope you have enjoyed to be Inside The Kore!

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