Better Keep Cash in Your Boots - Hardware Wallets are the New Single Point of Failure

Dabrowski, Adrian; Pfeffer, Katharina; Reichel, Markus; Mai, Alexandra; Weippl, Edgar; Franz, Michael

doi:10.1145/3464967.3488588

Cited by 8 publications

(10 citation statements)

References 9 publications

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“…However, similar to Bitcoin, the DeFi system suffers from the problem of improper key management. Existing key management methods, such as physical storage [35] [36], offline wallets [37] [38], and password-derived wallets [39], have some drawbacks. In Table 1, we summarize 9 forms of wallets, where local storage is the initial form of local file storage, hardware wallets, and QR code wallets both belong to physical storage wallets, and the remains belong to smart contract wallets.…”

Section: ) Inappropriate Key Managementmentioning

confidence: 99%

“…weaknesses of poor scalability [41] and the inability to have a single point of failure caused by the architecture design [35]. Smart contract wallets are divided into six types in [42].…”

Section: Smart Walletsmentioning

confidence: 99%

“…Users initiate a transaction and sign it using the key pair, the assets in the account are lost when the key leaks to an adversary. Some studies [35] [37] [101]- [106] proposed specific solutions for wallet management and wallet architecture.…”

Section: ) Wallet Optimization Schemesmentioning

confidence: 99%

“…Key Scheme [35] Improving collaborative key generation and signature [37] Combination with a cold and hot wallet for privacy [101] A practical way to public key encryption [102] A p2p wallet scheme with a routing protocol [103] A lightweight wallet based on TEE [104] A new scheme for creating sub-wallet keys [105] The shared key generated by T-ECDSA for signing [106] Combine signatures into one based on bloom filter…”

Section: Referencementioning

confidence: 99%

“…According to [35], existing hardware wallets migrated from the PC wallet architecture, resulting in a bad design that does not fundamentally fix the problem when just utilizing authentication and communication encryption. Interactive authentication adds several signatures and keys to the original wallet structure, which prevents attackers from manipulating the keys for transactions using a malfunctioning wallet.…”

Section: Referencementioning

confidence: 99%

See 4 more Smart Citations

A Survey of DeFi Security: Challenges and Opportunities

Li¹,

Bu²,

Li³

et al. 2022

Preprint

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Decentralized finance (DeFi), which is a promising domain since the era of blockchain 2.0, locked $200 billion in April 2022. However, it quickly dropped to $100 billion in May 2022, which makes us realize that security issues in this area are still a challenging job. DeFi is more complex than traditional finance because it is decentralized through blockchain and without a trustworthy third-party institution to act as a guarantee. So it owns not only financial properties but also technical aspects. Existing synthesis work for DeFi tends to ignore the relevance of various layers of security for the whole system. In addition, distinct layers have different means of protection against specific vulnerabilities, which is not considered by existing analytical work. In this paper, we perform a vulnerability analysis for the entire technology layer of the DeFi application, and then we collect the most impactive attacks in recent years. Finally, we summarize the existing optimization approaches for different layers and provide some challenges and future directions.

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Section: ) Inappropriate Key Managementmentioning

confidence: 99%

“…weaknesses of poor scalability [41] and the inability to have a single point of failure caused by the architecture design [35]. Smart contract wallets are divided into six types in [42].…”

Section: Smart Walletsmentioning

confidence: 99%