SoK: Design, Vulnerabilities and Defense of Cryptocurrency Wallets

The rapid growth of decentralized digital currencies, enabled by blockchain technology, has ushered in a new era of peer-to-peer transactions, revolutionizing the global economy. Cryptocurrency wallets, serving as crucial endpoints for these transactions, have become increasingly prevalent. However, the escalating value and usage of these wallets also expose them to significant security risks and challenges. This research aims to comprehensively explore the security aspects of cryptocurrency wallets. It provides a taxonomy of wallet types, analyzes their design and implementation, identifies common vulnerabilities and attacks, and discusses defense mechanisms and mitigation strategies. The taxonomy covers custodial, non-custodial, hot, and cold wallets, highlighting their unique characteristics and associated security considerations. The security analysis scrutinizes the theoretical and practical aspects of wallet design, while assessing the efficacy of existing security measures and protocols. Notable wallet attacks, such as Binance, Mt. Gox are examined to understand their causes and consequences. Furthermore, the paper surveys defense mechanisms, transaction monitoring, evaluating their effectiveness in mitigating threats

On Enhancing Security of Password-Based Authentication

Password has been the dominant authentication scheme for more than 30 years, and it will not be easily replaced in the foreseeable future. However, password authentication has long been plagued by the dilemma between security and usability, mainly due to human memory limitations. For example, a user often chooses an easy-to-guess (weak) password since it is easier to remember. The ever increasing number of online accounts per user even exacerbates this problem. In this dissertation, we present four research projects that focus on the security of password authentication and its ecosystem. First, we observe that personal information plays a very important role when a user creates a password. Enlightened by this, we conduct a study on how users create their passwords using their personal information based on a leaked password dataset. We create a new metric---Coverage---to quantify the personal information in passwords. Armed with this knowledge, we develop a novel password cracker named Personal-PCFG (Probabilistic Context-Free Grammars) that leverages personal information for targeted password guessing. Experiments show that Personal-PCFG is much more efficient than the original PCFG in cracking passwords. The second project aims to ease the password management hassle for a user. Password managers are introduced so that users need only one password (master password) to access all their other passwords. However, the password manager induces a single point of failure and is potentially vulnerable to data breach. To address these issues, we propose BluePass, a decentralized password manager that features a dual-possession security that involves a master password and a mobile device. In addition, BluePass enables a hand-free user experience by retrieving passwords from the mobile device through Bluetooth communications. In the third project, we investigate an overlooked aspect in the password lifecycle, the password recovery procedure. We study the password recovery protocols in the Alexa top 500 websites, and report interesting findings on the de facto implementation. We observe that the backup email is the primary way for password recovery, and the email becomes a single point of failure. We assess the likelihood of an account recovery attack, analyze the security policy of major email providers, and propose a security enhancement protocol to help securing password recovery emails by two factor authentication. \newline Finally, we focus on a more fundamental level, user identity. Password-based authentication is just a one-time checking to ensure that a user is legitimate. However, a user\u27s identity could be hijacked at any step. For example, an attacker can leverage a zero-day vulnerability to take over the root privilege. Thus, tracking the user behavior is essential to examine the identity legitimacy. We develop a user tracking system based on OS-level logs inside an enterprise network, and apply a variety of techniques to generate a concise and salient user profile for identity examination

Decryption Failure Attacks on Post-Quantum Cryptography

This dissertation discusses mainly new cryptanalytical results related to issues of securely implementing the next generation of asymmetric cryptography, or Public-Key Cryptography (PKC).PKC, as it has been deployed until today, depends heavily on the integer factorization and the discrete logarithm problems.Unfortunately, it has been well-known since the mid-90s, that these mathematical problems can be solved due to Peter Shor's algorithm for quantum computers, which achieves the answers in polynomial time.The recently accelerated pace of R&D towards quantum computers, eventually of sufficient size and power to threaten cryptography, has led the crypto research community towards a major shift of focus.A project towards standardization of Post-quantum Cryptography (PQC) was launched by the US-based standardization organization, NIST. PQC is the name given to algorithms designed for running on classical hardware/software whilst being resistant to attacks from quantum computers.PQC is well suited for replacing the current asymmetric schemes.A primary motivation for the project is to guide publicly available research toward the singular goal of finding weaknesses in the proposed next generation of PKC.For public key encryption (PKE) or digital signature (DS) schemes to be considered secure they must be shown to rely heavily on well-known mathematical problems with theoretical proofs of security under established models, such as indistinguishability under chosen ciphertext attack (IND-CCA).Also, they must withstand serious attack attempts by well-renowned cryptographers both concerning theoretical security and the actual software/hardware instantiations.It is well-known that security models, such as IND-CCA, are not designed to capture the intricacies of inner-state leakages.Such leakages are named side-channels, which is currently a major topic of interest in the NIST PQC project.This dissertation focuses on two things, in general:1) how does the low but non-zero probability of decryption failures affect the cryptanalysis of these new PQC candidates?And 2) how might side-channel vulnerabilities inadvertently be introduced when going from theory to the practice of software/hardware implementations?Of main concern are PQC algorithms based on lattice theory and coding theory.The primary contributions are the discovery of novel decryption failure side-channel attacks, improvements on existing attacks, an alternative implementation to a part of a PQC scheme, and some more theoretical cryptanalytical results