What are bitcoins and why does the WannaCry ransomware attack demand a ransom in bitcoins?

Last week, hospitals, factories, and businesses of all kinds around the world were paralyzed by a ransomware attack called WannaCry. This massive cyberattack triggered widespread alarm due to the potential loss of data (data from tens of thousands of computers was encrypted and held hostage pending ransom payment) for many companies worldwide. Some of the hardest-hit countries were Russia and the United Kingdom, and one of the affected Spanish companies was Telefónica. It's important to note that paying the ransom for this cyberattack does not guarantee data recovery.

Today, on the Apen blog, we want to take this opportunity to explain terms that are on everyone's lips these days, with the aim of better understanding what they mean and what they are used for.

What is cryptocurrency?

This is a method of digital exchange, a virtual currency created in 2009 by the founders of the most famous cryptocurrency, Bitcoin. Cryptocurrencies are electronically based; there is no physical currency. They are not backed by any government because they are not legal tender, and control of this virtual currency resides with its holders. Its price is determined by the law of supply and demand.

It is a virtual currency that cannot be counterfeited, because, being an electronic currency, the programmer chooses the number of coins he wants to put into circulation.

What is a bitcoin?

It is a cryptocurrency created in 2009 and supported by a P2P network. It is a digital currency used to exchange goods or services. This electronic currency offers innovative features and is notable for its ease of exchange.

It is characterized by being decentralized, meaning it is not backed by or dependent on any central issuer or government. It uses a proof-of-work system to prevent double-spending and ensure consensus among all network participants, who exchange information over an untrusted and highly compromised network. Transactions do not require intermediaries, and the protocol is open source.

The hackers don't want a ransom in euros or dollars. They demand bitcoins. The main reason for using this type of cryptocurrency is anonymity. There are no intermediaries, transactions take place on P2P networks (much more secure than traditional ones), and the encryption is so complex that it's very difficult to trace.

What is Ransomware?

Ransomware is a cyberattack that encrypts the data on your computer, preventing you from accessing it. Cybercriminals typically demand a ransom for the release of these files. These attacks usually infect computers through fraudulent emails and spread via malicious files.

Bitcoin presents itself as the perfect haven for data thieves, since transactions made with this currency are undetectable and the recipient of the transaction remains unknown. This allows criminals to remain anonymous, offering a perfect escape route.