Midex Exchange starts testing their own security system

Midex Exchange has started testing their own security system which is able to repel well-known threats, different attacks, and crypto exchange hacking. The new system takes into account all types of threats which can lead to data compromise and fund theft.

“Almost all cryptocurrency exchanges were created when the demand for money was low, so there was no need to design safety systems to work in conditions of high loads and large amounts of money. The introduction of the new security system will require a change in the architecture of the exchanges either partially or completely“, says Midex CTO Evgeny Kaznacheev. “Initially, the Midex Exchange security system was designed based on global cryptocurrency exchange system research and an analysis of incidents related to the closure of major exchange platforms”.

Regarding Midex security system, it includes daily wallet aggregation, an automatic monitoring system, an emergency stop, cold storage, and server structure, which is divided into different data-centers.

How does it work:

1. Key modules of the system are spaced at various data-centers in different parts of the world. In order to hack the system, it’s necessary to access all points at once.This approach allows to isolate the important points from each other.

2. The system stores inside such amount of money, which can satisfy users’ requests for withdrawals within a day but not more. The remaining funds allocate to cold storage, leaving the system possibility to get them back automatically. If the system feels lack of funds for withdrawal, the technical operator requests the missing funds in manual mode from the cold storage operator.

3. The automatic intelligent system of emergency stop analyzes data in the checkpoint database and file system continuously. In case of finding unauthorized changes, the system turns on the emergency mode, then stops all operations, locks entries and withdrawals and physically disconnects servers. At this time funds on “Daily replenishment wallet” are sent to cold storage automatically. The system starts only after manual security integrity check using special keys with multipoles.