Security is a fundamental aspect of NuDEX's design. We are committed to ensuring that our users operate with complete confidence, feeling comfortable, having full control over their cryptocurrencies, and, above all, benefiting from decentralization.
We have a team of cybersecurity experts and advanced protection measures that make NuDEX a leader in security when it comes to decentralized operations.
In this article, we will demonstrate why the security of our users is key and essential for us to be able to deliver the best service from the decentralization that blockchain technology offers us. Our platform has key security protocols that keep it safe; this includes advanced cryptography, real-time monitoring, risk management, and technologies such as NIP-20 and Zero-Knowledge MIPS (ZKM).
Security on decentralized exchanges is completely different from that of centralized exchanges, so we will compare them as well.
Core Security Measures
Threshold Signature Scheme (TSS)
The NuDEX system uses the Threshold Signature Scheme that operates through cryptographic methods to divide the private keys into different sections. A transaction becomes legitimate to be signed only when a specified minimum number of key shares are gathered, which protects users' assets from the loss of individual key shares. It is similar to multi-signature wallets but operates automatically, without requiring users to multi-sign, as in multi-custody wallets.
Real-Time Monitoring System
Real-time tracking tools within the platform monitor vital statistics including deposit volumes and withdrawal amounts along with order book performance and blockchain security status as well as user credential usage patterns. Continuous monitoring gives NuDEX the ability to identify security threats that may lead to on-chain threats or difficulties in signing transactions at the time of trading.
AI-Powered Risk Management System
The functioning of NuDEX’s risk management system relies on real-time monitoring data to detect suspicious user activities through its AI technology. The system implements an automatic withdrawal stop and a matching engine suspension as extreme protective measures to prevent unauthorized access to user funds.
Rapid Response Team
This is one of the most important things we work on at NuDEX, we maintain a 24/7 security team specially trained to respond quickly to any major security incident, which keeps all our users’ operations and trades safe. NuDEX staff members execute their security protocols based on established industry best practice models.
Security Research Team
A dedicated security team continuously monitors industry trends to keep us at the forefront of security while also keeping track of emerging threats to ensure state-of-the-art security tools are implemented on NuDEX.
NIP-20 and Zero-Knowledge MIPS (ZKM): Secure Trading
NIP-20 Protocol
NuDEX is built on the NIP-20 protocol, a secure and scalable infrastructure designed for decentralized trading that allows us to have low costs for our users and opens up the possibility for us to scale the number of transactions we can do in the future without risking our security over growth. This protocol allows for fast and reliable execution of transactions while preserving user privacy and maintaining full control over digital assets, and this is one of the main reasons why we make use of this protocol from decentralization.
Zero-Knowledge MIPS (ZKM)
Leveraging Zero-Knowledge MIPS (ZKM) technology, NuDEX is able to verify transactions without exposing sensitive information. Zero-knowledge proofs ensure that transactions are validated while maintaining the anonymity of all parties involved and keeping trading costs low, allowing users to transact without worrying about network fees. This is one of the advanced privacy features that distinguishes NuDEX from both centralized exchanges (CEX) and conventional decentralized exchanges (DEX).
NuDEX vs. CEX vs. DEX: A Security Perspective
NuDEX distinguishes itself by combining decentralized exchange privacy, transparency, and control features with centralized platform security standards.
NuDEX offers secure and private digital asset trading by using the NIP-20 protocol, which is further enhanced by Zero-Knowledge MIPS for added user security.
Users can trust NuDEX thanks to its real-time monitoring, AI-powered risk management, and 24/7 rapid response team, ensuring a secure and reliable trading environment. Join the evolution of trading with the decentralized experience offered by NuDEX.
Remember to create your account in Nudex and start trading now.
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