Evolving Bitcoin Custody

The broad topic of this thesis is the design and analysis of Bitcoin custody systems. Both the technology and threat landscape are evolving constantly. Therefore, custody systems, defence strategies, and risk models should be adaptive too. We introduce Bitcoin custody by describing the different types, design principles, phases and functions of custody systems. We review the technology stack of these systems and focus on the fundamentals; key-management and privacy. We present a perspective we call the systems view. It is an attempt to capture the full complexity of a custody system, including technology, people, and processes. We review existing custody systems and standards. We explore Bitcoin covenants. This is a mechanism to enforce constraints on transaction sequences. Although previous work has proposed how to construct and apply Bitcoin covenants, these require modifying the consensus rules of Bitcoin, a notoriously difficult task. We introduce the first detailed exposition and security analysis of a deleted-key covenant protocol, which is compatible with current consensus rules. We demonstrate a range of security models for deleted-key covenants which seem practical, in particular, when applied in autonomous (user-controlled) custody systems. We conclude with a comparative analysis with previous proposals. Covenants are often proclaimed to be an important primitive for custody systems, but no complete design has been proposed to validate that claim. To address this, we propose an autonomous custody system called Ajolote which uses deleted-key covenants to enforce a vault sequence. We evaluate Ajolote with; a model of its state dynamics, a privacy analysis, and a risk model. We propose a threat model for custody systems which captures a realistic attacker for a system with offline devices and user-verification. We perform ceremony analysis to construct the risk model.Comment: PhD thesi

Improving Security of Crypto Wallets in Blockchain Technologies

A big challenge in blockchain and cryptocurrency is securing the private key from potential hackers. Nobody can rollback a transaction made with a stolen key once the network confirms it. The technical solution to protect private keys is the cryptocurrency wallet, software, hardware, or a combination to manage the keys. In this dissertation, we try to investigate the significant challenges in existing cryptocurrency wallets and propose innovative solutions. Firstly, almost all cryptocurrency wallets suffer from the lack of a secure and convenient backup and recovery process. We offer a new cryptographic scheme to securely back up a hardware wallet relying on the side-channel human visual verification on the hardware wallet. Another practical mechanism to protect the funds is splitting the money between two wallets with small and large amounts. We propose a new scheme to create hierarchical wallets that we call deterministic sub-wallet to achieve this goal. The user can send funds from the wallet with a large amount to a smaller one in a secure way. We propose a multilayered architecture for cryptocurrency wallets based on a Defense-in-Depth strategy to protect private keys with a balance between convenience and security. The user protects the private keys in three restricted layers with different protection mechanisms. Finally, we try to solve another challenge in cryptocurrencies, which is losing access to private keys by its user, resulting in inaccessible coins. We propose a new mechanism called lean recovery transaction to tackle this problem. We make a change in wallet key management to generate a recovery transaction when needed. We implement a proof-of-concept for all of our proposals on a resource-constraint hardware wallet with a secure element, an embedded display, and one physical button. Furthermore, we evaluate the performance of our implementation and analyze the security of our proposed mechanisms

Kleptography and steganography in blockchains

Despite its vast proliferation, the blockchain technology is still evolving, and witnesses continuous technical innovations to address its numerous unresolved issues. An example of these issues is the excessive electrical power consumed by some consensus protocols. Besides, although various media reports have highlighted the existence of objectionable content in blockchains, this topic has not received sufficient research. Hence, this work investigates the threat and deterrence of arbitrary-content insertion in public blockchains, which poses a legal, moral, and technical challenge. In particular, the overall aim of this work is to thoroughly study the risk of manipulating the implementation of randomized cryptographic primitives in public blockchains to mount kleptographic attacks, establish steganographic communication, and store arbitrary content. As part of our study, we present three new kleptographic attacks on two of the most commonly used digital signatures: ring signature and ECDSA. We also demonstrate our kleptographic attacks on two real cryptocurrencies: Bytecoin and Monero. Moreover, we illustrate the plausibility of hijacking public blockchains to establish steganographic channels. Particularly, we design, implement, and evaluate the first blockchain-based broadcast communication tool on top of a real-world cryptocurrency. Furthermore, we explain the detrimental consequences of kleptography and steganography on the users and the future of the blockchain technology. Namely, we show that kleptography can be used to surreptitiously steal the users' secret signing keys, which are the most valuable and guarded secret in public blockchains. After losing their keys, users of cryptocurrencies will inevitably lose their funds. In addition, we clarify that steganography can be used to establish subliminal communication and secretly store arbitrary content in public blockchains, which turns them into cheap cyberlockers. Consequently, the participation in such blockchains, which are known to store unethical content, can be criminalized, hindering the future adoption of blockchains. After discussing the adverse effects of kleptographic and steganographic attacks on blockchains, we survey all of the existing techniques that can defend against these attacks. Finally, due to the shortcomings of the available techniques, we propose four countermeasures that ensure kleptography and steganography-resistant public blockchains. Our countermeasures include two new cryptographic primitives and a generic steganographyresistant blockchain framework (SRBF). This framework presents a universal solution that deters steganography and practically achieves the right to be forgotten (RtbF) in blockchains, which represents a regulatory challenge for current immutable blockchains

A hybrid methodology to assess cyber resilience of IoT in energy management and connected sites

Cyber threats and vulnerabilities present an increasing risk to the safe and frictionless execution of business operations. Bad actors (“hackers”), including state actors, are increasingly targeting the operational technologies (OTs) and industrial control systems (ICSs) used to protect critical national infrastructure (CNI). Minimisations of cyber risk, attack surfaces, data immutability, and interoperability of IoT are some of the main challenges of today’s CNI. Cyber security risk assessment is one of the basic and most important activities to identify and quantify cyber security threats and vulnerabilities. This research presents a novel i-TRACE security-by-design CNI methodology that encompasses CNI key performance indicators (KPIs) and metrics to combat the growing vicarious nature of remote, well-planned, and well-executed cyber-attacks against CNI, as recently exemplified in the current Ukraine conflict (2014–present) on both sides. The proposed methodology offers a hybrid method that specifically identifies the steps required (typically undertaken by those responsible for detecting, deterring, and disrupting cyber attacks on CNI). Furthermore, we present a novel, advanced, and resilient approach that leverages digital twins and distributed ledger technologies for our chosen i-TRACE use cases of energy management and connected sites. The key steps required to achieve the desired level of interoperability and immutability of data are identified, thereby reducing the risk of CNI-specific cyber attacks and minimising the attack vectors and surfaces. Hence, this research aims to provide an extra level of safety for CNI and OT human operatives, i.e., those tasked with and responsible for detecting, deterring, disrupting, and mitigating these cyber-attacks. Our evaluations and comparisons clearly demonstrate that i-TRACE has significant intrinsic advantages compared to existing “state-of-the-art” mechanisms

Information Leakage Attacks and Countermeasures

The scientific community has been consistently working on the pervasive problem of information leakage, uncovering numerous attack vectors, and proposing various countermeasures. Despite these efforts, leakage incidents remain prevalent, as the complexity of systems and protocols increases, and sophisticated modeling methods become more accessible to adversaries. This work studies how information leakages manifest in and impact interconnected systems and their users. We first focus on online communications and investigate leakages in the Transport Layer Security protocol (TLS). Using modern machine learning models, we show that an eavesdropping adversary can efficiently exploit meta-information (e.g., packet size) not protected by the TLS’ encryption to launch fingerprinting attacks at an unprecedented scale even under non-optimal conditions. We then turn our attention to ultrasonic communications, and discuss their security shortcomings and how adversaries could exploit them to compromise anonymity network users (even though they aim to offer a greater level of privacy compared to TLS). Following up on these, we delve into physical layer leakages that concern a wide array of (networked) systems such as servers, embedded nodes, Tor relays, and hardware cryptocurrency wallets. We revisit location-based side-channel attacks and develop an exploitation neural network. Our model demonstrates the capabilities of a modern adversary but also presents an inexpensive tool to be used by auditors for detecting such leakages early on during the development cycle. Subsequently, we investigate techniques that further minimize the impact of leakages found in production components. Our proposed system design distributes both the custody of secrets and the cryptographic operation execution across several components, thus making the exploitation of leaks difficult

Demystifying Internet of Things Security

Break down the misconceptions of the Internet of Things by examining the different security building blocks available in Intel Architecture (IA) based IoT platforms. This open access book reviews the threat pyramid, secure boot, chain of trust, and the SW stack leading up to defense-in-depth. The IoT presents unique challenges in implementing security and Intel has both CPU and Isolated Security Engine capabilities to simplify it. This book explores the challenges to secure these devices to make them immune to different threats originating from within and outside the network. The requirements and robustness rules to protect the assets vary greatly and there is no single blanket solution approach to implement security. Demystifying Internet of Things Security provides clarity to industry professionals and provides and overview of different security solutions What You'll Learn Secure devices, immunizing them against different threats originating from inside and outside the network Gather an overview of the different security building blocks available in Intel Architecture (IA) based IoT platforms Understand the threat pyramid, secure boot, chain of trust, and the software stack leading up to defense-in-depth Who This Book Is For Strategists, developers, architects, and managers in the embedded and Internet of Things (IoT) space trying to understand and implement the security in the IoT devices/platforms

Electronic Voting: 6th International Joint Conference, E-Vote-ID 2021, Virtual Event, October 5–8, 2021: proceedings

This volume contains the papers presented at E-Vote-ID 2021, the Sixth International Joint Conference on Electronic Voting, held during October 5–8, 2021. Due to the extraordinary situation brought about by the COVID-19, the conference was held online for the second consecutive edition, instead of in the traditional venue in Bregenz, Austria. The E-Vote-ID conference is the result of the merger of the EVOTE and Vote-ID conferences, with first EVOTE conference taking place 17 years ago in Austria. Since that conference in 2004, over 1000 experts have attended the venue, including scholars, practitioners, authorities, electoral managers, vendors, and PhD students. The conference focuses on the most relevant debates on the development of electronic voting, from aspects relating to security and usability through to practical experiences and applications of voting systems, also including legal, social, or political aspects, amongst others, and has turned out to be an important global referent in relation to this issue

Sixth International Joint Conference on Electronic Voting E-Vote-ID 2021. 5-8 October 2021

This volume contains papers presented at E-Vote-ID 2021, the Sixth International Joint Conference on Electronic Voting, held during October 5-8, 2021. Due to the extraordinary situation provoked by Covid-19 Pandemic, the conference is held online for second consecutive edition, instead of in the traditional venue in Bregenz, Austria. E-Vote-ID Conference resulted from the merging of EVOTE and Vote-ID and counting up to 17 years since the _rst E-Vote conference in Austria. Since that conference in 2004, over 1000 experts have attended the venue, including scholars, practitioners, authorities, electoral managers, vendors, and PhD Students. The conference collected the most relevant debates on the development of Electronic Voting, from aspects relating to security and usability through to practical experiences and applications of voting systems, also including legal, social or political aspects, amongst others; turning out to be an important global referent in relation to this issue. Also, this year, the conference consisted of: · Security, Usability and Technical Issues Track · Administrative, Legal, Political and Social Issues Track · Election and Practical Experiences Track · PhD Colloquium, Poster and Demo Session on the day before the conference E-VOTE-ID 2021 received 49 submissions, being, each of them, reviewed by 3 to 5 program committee members, using a double blind review process. As a result, 27 papers were accepted for its presentation in the conference. The selected papers cover a wide range of topics connected with electronic voting, including experiences and revisions of the real uses of E-voting systems and corresponding processes in elections. We would also like to thank the German Informatics Society (Gesellschaft für Informatik) with its ECOM working group and KASTEL for their partnership over many years. Further we would like to thank the Swiss Federal Chancellery and the Regional Government of Vorarlberg for their kind support. EVote- ID 2021 conference is kindly supported through European Union's Horizon 2020 projects ECEPS (grant agreement 857622) and mGov4EU (grant agreement 959072). Special thanks go to the members of the international program committee for their hard work in reviewing, discussing, and shepherding papers. They ensured the high quality of these proceedings with their knowledge and experience