Digital Asset Outlook 2022
Theme 12. Cybersecurity
12.5 Cybersecurity for digital assets – Industry metrics Cybersecurity metrics convey important information including system security level and security emphasis of the digital asset firms. Below we summarize the key metrics that help gauge the cybersecurity and risk-hedging capabilities of industry players. Figure 120. Cybersecurity for digital assets – Key metrics for analysis Metrics
What it measures
Drivers
Importance
Cyber Insurance coverage
The amount of risk or liability that is covered for an individual or entity by way of insurance services
- Amount of coins that a digital asset exchange has set aside to cover losses in the event of a hack; - The accessibility to the reinsurance market.
The risk-hedging capabilities against thefts targeting online wallets and exchanges
The amount of rewards that a digital asset service provider offers to developers for identifying vulnerability
- The level of importance that digital asset service providers attach to cyberattack prevention The more rewards offered, the more likely it is to have Whitehat talent and the more secure it is.
The willingness to incentivize users to find the loopholes and vulnerabilities of its system
The number of times that a digital asset platform has been hacked
- Level of transaction volume attractiveness and popularity to hackers - Level of cybersecurity/ hacking difficulty
Counter-intuitively, digital asset service providers that have been hacked in the past would likely have addressed the loophole and were less vulnerable.
Bug bounty program rewards
The number of hacks historically
Source: Kaspersky
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