1 minute read
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.
Advertisement
Figure 120. Cybersecurity for digital assets – Key metrics for analysis
Metrics What it measures Drivers
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.
Bug bounty program rewards 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 number of hacks historically 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
Source: Kaspersky
Importance
The risk-hedging capabilities against thefts targeting online wallets and exchanges
The willingness to incentivize users to find the loopholes and vulnerabilities of its system
Counter-intuitively, digital asset service providers that have been hacked in the past would likely have addressed the loophole and were less vulnerable.
