Scenario Overview
In this scenario, I have been given a responsibility as an online retail store with Bricks and Mortar together with virtual sales. The organization is looking forward to accepting Bitcoin for buying and selling products online. This will mainly involve all products that are sold on the website. However, Bitcoin will not have the capacity to trace the users transacting. Therefore, this paper will explore risk analysis evaluation for potential breaches in the Bitcoin transaction system and propose analytical approaches and tools for recognizing, assessing, and mitigating a breach.
Q1. What are the pros/cons of embracing this new payment system?
“Bitcoin is a peer-to-peer and decentralized cryptocurrency system which generates transactions through digital units of exchange known as bitcoin” (Reiff, 2019). The decentralized system means that Bitcoin is not regulated or controlled by any central authority. Bitcoin payment system is liked with several benefits. For example, it has user autonomy since cryptocurrency owners control their own money. Besides, the system is pseudonymous because the transactions are identified using a blockchain address only. Also, the transactions are done on a peer-to-peer basis since users can receive and send money from anybody on the network across the world. Other benefits are that the Bitcoin payment system has a low transaction fee, it is mobile, transactions are irreversible, secure, and accessible. However, it has some drawbacks, such as risk and volatility, and the system lacks understanding and notification, with inadequate functions.
Q2. How would you ensure the orders were legitimate?
The question is whether or not Bitcoin transactions can be faked. Notably, according to Ludwig (2021), “the Bitcoin protocol is established so that there can never be any duplicate or fake Bitcoin on the register. Bitcoin is the first currency that makes it categorically difficult faking its units.” Bitcoin prevents fake transactions in various ways. For instance, if an individual alters a single transaction amount by 0.001 Bitcoin, the subsequent hash will be unrecognized, causing the network to reject the fraud. If a valid hash or mess is discovered, the system will broadcast the network and add a block to the blockchain. In addition, there is a way to tell if a Bitcoin is a scammer. A simple approach is to see if the investment scheme promises idealistic returns quickly.
Q3. How would you ensure Information Security and Compliance are built into the integrated systems?
I will establish information security and compliance into the Bitcoin transaction system using analytical approaches and tools for recognizing, assessing, and mitigating any breach. For instance, the use of a firewall, an information security tool that observes and filters outgoing and incoming network traffic established on previously implemented security guidelines of an organization. It is important to note that a firewall is primarily a barrier between the public internet and the private internal network (Ullrich et al., 2016). With that, the Bitcoin transaction system will ensure availability, confidentiality, authenticity, integrity, and non-repudiation.
In conclusion, this paper analyzed a scenario of implementing a Bitcoin payment system in Bricks and Mortar. The paper outlined the advantages and disadvantages of the system, how to recognize if the system is fake, and how I will ensure information security and compliance. It was concluded that the Bitcoin transaction system would ensure availability, confidentiality, authenticity, integrity, and non-repudiation within the company.
References
Ludwig, S. (2021, April 5). How to Accept Bitcoin Payments at Your Business. Https://Www.uschamber.com/Co. https://www.uschamber.com/co/run/technology/how-to-accept-bitcoin-payments
Reiff, N. (2019). What are the advantages of paying with Bitcoin? Investopedia. https://www.investopedia.com/ask/answers/100314/what-are-advantages-paying-bitcoin.asp
Ullrich, J., Cropper, J., Frühwirt, P., & Weippl, E. (2016). The role and security of firewalls in cyber-physical cloud computing. EURASIP Journal on Information Security, 2016(1). https://doi.org/10.1186/s13635-016-0042-3
write