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The survival of the cybercriminal forum in the face of new, more secure technologies and constant pressure from law enforcement does not come as a surprise to researchers at Digital Shadows. Digital Shadows. Previous Report. Next Report. Request a Live Demo.
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Threat Model of a Remote Worker. Third Party Risk: 4 ways to manage your security ecosystem. The following explanation is grossly simplified but generally applies to most blockchains using a Proof-of-Work PoW consensus system most current crypto currencies fall into this category.
The way most crypto currency blockchains work is simple: data is sent to a mempool, this data is pulled by miners who create blocks, add a nonce and then hash the block to get a specific result so it is a valid block, and repeat as needed until they get the result they need, or someone else mines a valid block and broadcasts it to prove that they won. In other words the attacker has to be able to mine blocks much faster than the network to stand a chance.
The bad news for attackers is that there are generally no shortcuts. Most chains use strong hashing algorithms and select for outputs that require brute force mining, even with the ability to select what goes into blocks miners are stuck generating random nonces, trying them out and repeating until they find one that works. Rainbow tables and other kinds of pre-compute attacks do not generally work unless the crypto currency hashing system uses a weak hash.
You still need to conduct a double spending or related attack, and move the crypto currency somewhere else, otherwise the attacker runs the risk of the network agreeing to hard fork the blockchain and essentially just ignore the attack, which has happened the Ethereum DAO attack for example. This is complicated by the fact however that the most successful crypto currency blockchains. Well the challenge is that mining is a profitable activity, and massive mining begets efficiency which makes it more efficient and more likely to generate returns.
Will attackers go after the big game like Bitcoin and Ethereum? Will they hunt down and double spend on the smaller networks? Yes, they have, and they will continue to do so. By Kurt Seifried This article is not legal or investment advice.
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