All Crypto Security, Blockchain Security Posts
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Crypto Security
Proof of Reserve vs. Proof of Liability vs. Proof of Solvency
Recent events like the FTX meltdown have sparked interest and conversations about how the incident could have been prevented. In the case of FTX, the primary problem was that the platform did not hold sufficient assets to cover its user deposits and liabilities. What are Merkle Trees and Proofs? Proof of Reserves and Proof of Liabilities can use Merkle trees to prove certain facts while…
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Crypto Security
How Blockchain Security Differs From Traditional Cybersecurity – 1 – Node Operators
Blockchain is a rapidly-evolving technology with a great deal of interest and investment. Decentralized Finance (DeFi), in particular, has a great deal of money invested in it as well as a growing number of high-profile and expensive hacks. Beyond DeFi, many companies, both large and small, are investing heavily in blockchain technology. As blockchain increasingly underpins major systems, securing this technology becomes increasingly vital. Financial…
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Crypto Security
The 12 Biggest Hacking Incidents in the History of Crypto
The most comprehensive ranked list of the biggest crypto hacks in history (Up until November 1, 2022. I suspect a larger one is just behind the corner) It wasn’t easy digging through the entire history of cybercrime involving cryptocurrencies, but I wanted to get to the bottom of which ones were the biggest in terms of total value of the stolen digital assets at the…
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Crypto Security
How the Big Binance Bridge Hack Will Change the way People View Web3
$566M worth of BNB was stolen from Binance’s cross-chain bridge BSC Token Hub, but how they responded to the hack will be the most memorable part. Decentralization is a hot button topic in web3, and Binance is (at the time of writing) the biggest crypto exchange by trading volume in the world. The recent hack of Binance’s native cross-chain bridge BSC Token Hub revealed to…
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Crypto Security
How a $1B Flash Loan Led to the $182M Beanstalk Farms Exploit
Understanding how flash loans and governance work in DeFi to demystify the Beanstalk Farms Hack The only way to understand how the Beanstalk Farms decentralized credit-based stablecoin protocol exploit happened is to first understand flash loans, which are a little known financial tool unique to the DeFi (decentralized finance) space, as well as governance. A flash loan is, like it sounds, a very fast loan.…
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Crypto Security
The Top 4 Supply Chain Security Risks of Blockchain Smart Contracts
Code reuse is considered best practice in software engineering. Reusing high-quality, secure code can speed development processes and often results in higher-quality code than software developed entirely from scratch. Additionally, the reuse of high-quality, audited libraries reduces security risks by decreasing the probability that new vulnerabilities will creep into the code base. In open source communities such as the blockchain and crypto community, code reuse…
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Crypto Security
How the Nomad Bridge Hack can Help Us Explore the Potential Downsides of Decentralization
One attacker and hundreds of copycats looted the Nomad bridge for over $190 million; few did the right thing. Decentralization is a hot-button topic in 2022. To some, it seems like the solution to a variety of issues plaguing the so-called web2 ecosystem, such as the monopolization of social media, the centralized control over the flow of information, and bad data privacy and data monetization…
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Crypto Security
Introduction to Zero-Knowledge Proofs
Proving knowledge of a secret is the basis of password-based authentication systems. The assumption is that only you know your password. If this is the case, entering your password into a system proves your identity and grants you access to your account. However, this approach doesn’t work as well on the blockchain, where everything stored on the digital ledger is publicly visible. Any password or…
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