In this paper, we identify a new form of attack, called the Balance attack, against proof-of-work blockchain systems. The novelty of this attack consists of delaying network communications between multiple subgroups of nodes with balanced mining power. Our theoretical analysis captures the precise tradeoff between the network delay and the mining power of the attacker needed to double spend in Ethereum with high probability. We quantify our probabilistic analysis with statistics taken from the R3 consortium, and show that a single machine needs 20 minutes to attack the consortium. Finally, we run an Ethereum private chain in a distributed system with similar settings as R3 to demonstrate the feasibility of the approach, and discuss the application of the Balance attack to Bitcoin. Our results clearly confirm that main proof-of-work blockchain protocols can be badly suited for consortium blockchains.
The attacks become harder if the external action is taken after the transaction is committed by the blockchain. Rosenfeld's attack @cite_0 consists of issuing a transaction to a merchant. The attacker then starts solo-mining a longer branch while waiting for @math blocks to be appended so that the merchant takes an external action in response to the commit. The attack success probability depends on the number @math of blocks the merchant waits before taking an external action and the attacker mining power. However, when the attacker has more mining power than the rest of the system, the attack, also called or , is guaranteed successful, regardless of the value @math . To make the attack successful when the attacker owns only a quarter of the mining power, the attacker can incentivize other miners to form a coalition @cite_32 until the coalition owns more than half of the total mining power.
@cite_0 @cite_32
1593596963 2886706106
Bitcoin was recently introduced as a peer-to-peer electronic currency in order to facilitate transactions outside the traditional financial system. The core of Bitcoin, the Blockchain, is the history of the transactions in the system maintained by all miners as a distributed shared register. New blocks in the Blockchain contain the last transactions in the system and are added by miners after a block mining process that consists in solving a resource consuming proof-of-work (cryptographic puzzle). The reward is a motivation for mining process but also could be an incentive for attacks such as selfish mining. In this paper we propose a solution for one of the major problems in Bitcoin : selfish mining or block-withholding attack. This attack is conducted by adversarial or selfish miners in order to either earn undue rewards or waste the computational power of honest miners. Contrary to recent solutions, our solution, ZeroBlock, prevents block-withholding using a technique free of timestamp that can be forged. Moreover, we show that our solution is compliant with nodes churn. While showing great promise, Bitcoin requires users to wait tens of minutes for transactions to commit, and even then, offering only probabilistic guarantees. This paper introduces ByzCoin, a novel Byzantine consensus protocol that leverages scalable collective signing to commit Bitcoin transactions irreversibly within seconds. ByzCoin achieves Byzantine consensus while preserving Bitcoin's open membership by dynamically forming hash power-proportionate consensus groups that represent recently-successful block miners. ByzCoin employs communication trees to optimize transaction commitment and verification under normal operation while guaranteeing safety and liveness under Byzantine faults, up to a near-optimal tolerance of f faulty group members among 3f + 2 total. ByzCoin mitigates double spending and selfish mining attacks by producing collectively signed transaction blocks within one minute of transaction submission. Tree-structured communication further reduces this latency to less than 30 seconds. Due to these optimizations, ByzCoin achieves a throughput higher than PayPal currently handles, with a confirmation latency of 15-20 seconds. Bitcoin is without a doubt the most successful cryptocurrency in circulation today, making it an extremely valuable target for attackers. Indeed, many studies have highlighted ways to compromise one or several Bitcoin nodes. In this paper, we take a different perspective and study the effect of large-scale network-level attacks such as the ones that may be launched by Autonomous Systems (ASes). We show that attacks that are commonly believed to be hard, such as isolating 50 of the mining power, are actually within the reach of anyone with access to a BGP-enabled network and hijacking less than 900 prefixes. Once on path, AS-level adversaries can then partition the Bitcoin network or delay block propagation significantly. The key factors that enable these attacks are the extreme centralization of Bitcoin, both from a routing and a mining perspective, along with the fact that Bitcoin messages are sent unencrypted, without integrity guarantees. We demonstrate the feasibility of large-scale attacks in practice against the deployed Bitcoin software and quantify their disruptive network-wide impact. The potential damage to Bitcoin is severe. By isolating a part of the network or delaying the propagation of blocks, network-level attackers can cause a significant amount of mining power to be wasted, leading to revenue losses and enabling a wide range of attacks such as double spending. We provide several suggestions on approaches to mitigate such attacks employing both short-term and long-term measures. As the most successful cryptocurrency to date, Bitcoin constitutes a target of choice for attackers. While many attack vectors have already been uncovered, one important vector has been left out though: attacking the currency via the Internet routing infrastructure itself. Indeed, by manipulating routing advertisements (BGP hijacks) or by naturally intercepting traffic, Autonomous Systems (ASes) can intercept and manipulate a large fraction of Bitcoin traffic. This paper presents the first taxonomy of routing attacks and their impact on Bitcoin, considering both small-scale attacks, targeting individual nodes, and large-scale attacks, targeting the network as a whole. While challenging, we show that two key properties make routing attacks practical: (i) the efficiency of routing manipulation; and (ii) the significant centralization of Bitcoin in terms of mining and routing. Specifically, we find that any network attacker can hijack few (<100) BGP prefixes to isolate 50 of the mining power---even when considering that mining pools are heavily multi-homed. We also show that on-path network attackers can considerably slow down block propagation by interfering with few key Bitcoin messages. We demonstrate the feasibility of each attack against the deployed Bitcoin software. We also quantify their effectiveness on the current Bitcoin topology using data collected from a Bitcoin supernode combined with BGP routing data. The potential damage to Bitcoin is worrying. By isolating parts of the network or delaying block propagation, attackers can cause a significant amount of mining power to be wasted, leading to revenue losses and enabling a wide range of exploits such as double spending. To prevent such effects in practice, we provide both short and long-term countermeasures, some of which can be deployed immediately. We investigate alternative suspicion functions for bias-based traitor tracing schemes, and present a practical construction of a simple decoder that attains capacity in the limit of large coalition size @math . We derive optimal suspicion functions in both the restricted-digit model and the combined-digit model. These functions depend on information that is usually not available to the tracer—the attack strategy or the tallies of the symbols received by the colluders. We discuss how such results can be used in realistic contexts. We study several combinations of coalition attack strategy versus suspicion function optimized against some attack (another attack or the same). In many of these combinations, the usual codelength scaling @math changes to a lower power of @math , e.g., @math . We find that the interleaving strategy is an especially powerful attack. The suspicion function tailored against interleaving is the key ingredient of the capacity-achieving construction. Bitcoin is a "crypto currency", a decentralized electronic payment scheme based on cryptography. Bitcoin economy grows at an incredibly fast rate and is now worth some 10 billions of dollars. Bitcoin mining is an activity which consists of creating (minting) the new coins which are later put into circulation. Miners spend electricity on solving cryptographic puzzles and they are also gatekeepers which validate bitcoin transactions of other people. Miners are expected to be honest and have some incentives to behave well. However. In this paper we look at the miner strategies with particular attention paid to subversive and dishonest strategies or those which could put bitcoin and its reputation in danger. We study in details several recent attacks in which dishonest miners obtain a higher reward than their relative contribution to the network. In particular we revisit the concept of block withholding attacks and propose a new concrete and practical block withholding attack which we show to maximize the advantage gained by rogue miners. RECENT EVENTS: it seems that the attack was recently executed, see Section XI-A. Selfish mining, originally discovered by [9], is a well-known attack where a selfish miner, under certain conditions, can gain a disproportionate share of reward by deviating from the honest behavior. In this paper, we expand the mining strategy space to include novel "stubborn" strategies that, for a large range of parameters, earn the miner more revenue. Consequently, we show that the selfish mining attack is not (in general) optimal. Further, we show how a miner can further amplify its gain by non-trivially composing mining attacks with network-level eclipse attacks. We show, surprisingly, that given the attacker's best strategy, in some cases victims of an eclipse attack can actually benefit from being eclipsed! We present eclipse attacks on bitcoin's peer-to-peer network. Our attack allows an adversary controlling a sufficient number of IP addresses to monopolize all connections to and from a victim bitcoin node. The attacker can then exploit the victim for attacks on bitcoin's mining and consensus system, including N-confirmation double spending, selfish mining, and adversarial forks in the blockchain. We take a detailed look at bitcoin's peer-to-peer network, and quantify the resources involved in our attack via probabilistic analysis, Monte Carlo simulations, measurements and experiments with live bitcoin nodes. Finally, we present countermeasures, inspired by botnet architectures, that are designed to raise the bar for eclipse attacks while preserving the openness and decentralization of bitcoin's current network architecture. Denial of service (DoS) attacks continue to threaten the reliability of networking systems. Previous approaches for protecting networks from DoS attacks are reactive in that they wait for an attack to be launched before taking appropriate measures to protect the network. This leaves the door open for other attacks that use more sophisticated methods to mask their traffic.We propose an architecture called Secure Overlay Services (SOS) that proactively prevents DoS attacks, geared toward supporting Emergency Services or similar types of communication. The architecture is constructed using a combination of secure overlay tunneling, routing via consistent hashing, and filtering. We reduce the probability of successful attacks by (i) performing intensive filtering near protected network edges, pushing the attack point perimeter into the core of the network, where high-speed routers can handle the volume of attack traffic, and (ii) introducing randomness and anonymity into the architecture, making it difficult for an attacker to target nodes along the path to a specific SOS-protected destination.Using simple analytical models, we evaluate the likelihood that an attacker can successfully launch a DoS attack against an SOS-protected network. Our analysis demonstrates that such an architecture reduces the likelihood of a successful attack to minuscule levels. Bitcoin is the world's first decentralized digital currency. Its main technical innovation is the use of a blockchain and hash-based proof of work to synchronize transactions and prevent double-spending the currency. While the qualitative nature of this system is well understood, there is widespread confusion about its quantitative aspects and how they relate to attack vectors and their countermeasures. In this paper we take a look at the stochastic processes underlying typical attacks and their resulting probabilities of success. In recent years, academic literature has analyzed many attacks on network trace anonymization techniques. These attacks usually correlate external information with anonymized data and successfully de-anonymize objects with distinctive signatures. However, analyses of these attacks still underestimate the real risk of publishing anonymized data, as the most powerful attack against anonymization is traffic injection. We demonstrate that performing live traffic injection attacks against anonymization on a backbone network is not difficult, and that potential countermeasures against these attacks, such as traffic aggregation, randomization or field generalization, are not particularly effective. We then discuss tradeoffs of the attacker and defender in the so-called injection attack space. An asymmetry in the attack space significantly increases the chance of a successful de-anonymization through lengthening the injected traffic pattern. This leads us to re-examine the role of network data anonymization. We recommend a unified approach to data sharing, which uses anonymization as a part of a technical, legal, and social approach to data protection in the research and operations communities. We investigate alternative suspicion functions for Tardos traitor tracing schemes. In the simple decoder approach (computation of a score for every user independently) we derive suspicion functions that optimize a performance indicator related to the sufficient code length l in the limit of large coalition size c. Our results hold for the Restricted-Digit Model as well as the Combined-Digit Model. The scores depend on information that is usually not available to the tracer -- the attack strategy or the tallies of the symbols received by the colluders. We discuss how such results can be used in realistic contexts. We study several combinations of coalition attack strategy versus suspicion function optimized against some attack (another attack or the same). In many of these combinations the usual scaling l c2 is replaced by a lower power of c, e.g. c3 2. We find that the interleaving strategy is an especially powerful attack, and the suspicion function tailored against interleaving is effective against all considered attacks. Bit coin is a decentralized P2P digital currency in which coins are generated by a distributed set of miners and transactions are broadcasted via a peer-to-peer network. While Bit coin provides some level of anonymity (or rather pseudonymity) by encouraging the users to have any number of random-looking Bit coin addresses, recent research shows that this level of anonymity is rather low. This encourages users to connect to the Bit coin network through anonymizers like Tor and motivates development of default Tor functionality for popular mobile SPV clients. In this paper we show that combining Tor and Bit coin creates a new attack vector. A low-resource attacker can gain full control of information flows between all users who chose to use Bit coin over Tor. In particular the attacker can link together user's transactions regardless of pseudonyms used, control which Bit coin blocks and transactions are relayed to user and can delay or discard user's transactions and blocks. Moreover, we show how an attacker can fingerprint users and then recognize them and learn their IP addresses when they decide to connect to the Bit coin network directly. Neural networks provide state-of-the-art results for most machine learning tasks. Unfortunately, neural networks are vulnerable to adversarial examples: given an input @math and any target classification @math , it is possible to find a new input @math that is similar to @math but classified as @math . This makes it difficult to apply neural networks in security-critical areas. Defensive distillation is a recently proposed approach that can take an arbitrary neural network, and increase its robustness, reducing the success rate of current attacks' ability to find adversarial examples from @math to @math . In this paper, we demonstrate that defensive distillation does not significantly increase the robustness of neural networks by introducing three new attack algorithms that are successful on both distilled and undistilled neural networks with @math probability. Our attacks are tailored to three distance metrics used previously in the literature, and when compared to previous adversarial example generation algorithms, our attacks are often much more effective (and never worse). Furthermore, we propose using high-confidence adversarial examples in a simple transferability test we show can also be used to break defensive distillation. We hope our attacks will be used as a benchmark in future defense attempts to create neural networks that resist adversarial examples. This paper presents an adversarial machine learning approach to launch jamming attacks on wireless communications and introduces a defense strategy. In a cognitive radio network, a transmitter senses channels, identifies spectrum opportunities, and transmits data to its receiver in idle channels. On the other hand, an attacker may also sense channels, identify busy channels and aim to jam transmissions of legitimate users. In a dynamic system with complex channel, traffic and interference characteristics, the transmitter applies some pre-trained machine learning algorithm to classify a channel as idle or busy. This classifier is unknown to the attacker that senses a channel, captures the transmitter's decisions by tracking the acknowledgments and applies deep learning (in form of an exploratory attack, i.e., inference attack) to build a classifier that is functionally equivalent to the one at the transmitter. This approach is shown to support the attacker to reliably predict successful transmissions based on the sensing results and effectively jam these transmissions. Then, a defense scheme is developed against adversarial deep learning by exploiting the sensitivity of deep learning to training errors. The transmitter deliberately takes a small number of wrong actions (in form of a causative attack, i.e., poisoning attack, launched against the attacker) when it accesses the spectrum. The objective is to prevent the attacker from building a reliable classifier. For that purpose, the attacker systematically selects when to take wrong actions to balance the conflicting effects of deceiving the attacker and making correct transmission decisions. This defense scheme successfully fools the attacker into making prediction errors and allows the transmitter to sustain its performance against intelligent jamming attacks. A power grid is a complex system connecting electric power generators to consumers through power transmission and distribution networks across a large geographical area. System monitoring is necessary to ensure the reliable operation of power grids, and state estimation is used in system monitoring to best estimate the power grid state through analysis of meter measurements and power system models. Various techniques have been developed to detect and identify bad measurements, including the interacting bad measurements introduced by arbitrary, non-random causes. At first glance, it seems that these techniques can also defeat malicious measurements injected by attackers. In this paper, we present a new class of attacks, called false data injection attacks, against state estimation in electric power grids. We show that an attacker can exploit the configuration of a power system to launch such attacks to successfully introduce arbitrary errors into certain state variables while bypassing existing techniques for bad measurement detection. Moreover, we look at two realistic attack scenarios, in which the attacker is either constrained to some specific meters (due to the physical protection of the meters), or limited in the resources required to compromise meters. We show that the attacker can systematically and efficiently construct attack vectors in both scenarios, which can not only change the results of state estimation, but also modify the results in arbitrary ways. We demonstrate the success of these attacks through simulation using IEEE test systems. Our results indicate that security protection of the electric power grid must be revisited when there are potentially malicious attacks. Collaborative spectrum sensing is subject to the attack of malicious secondary user(s), which may send false reports. Therefore, it is necessary to detect potential attacker(s) and then exclude the attacker's report for spectrum sensing. Many existing attacker-detection schemes are based on the knowledge of the attacker's strategy and thus apply the Bayesian attacker detection. However, in practical cognitive radio systems the data fusion center typically does not know the attacker's strategy. To alleviate the problem of the unknown strategy of attacker(s), an abnormality-detection approach, based on the abnormality detection in data mining, is proposed. The performance of the attacker detection in the single-attacker scenario is analyzed explicitly. For the case in which the attacker does not know the reports of honest secondary users (called independent attack), it is shown that the attacker can always be detected as the number of spectrum sensing rounds tends to infinity. For the case in which the attacker knows all the reports of other secondary users, based on which the attacker sends its report (called dependent attack), an approach for the attacker to perfectly avoid being detected is found, provided that the attacker has perfect information about the miss-detection and false-alarm probabilities. This motivates cognitive radio networks to protect the reports of secondary users. The performance of attacker detection in the general case of multiple attackers is demonstrated using numerical simulations. Several new services incentivize clients to compete in solving large computation tasks in exchange for financial rewards. This model of competitive distributed computation enables every user connected to the Internet to participate in a game in which he splits his computational power among a set of competing pools -- the game is called a computational power splitting game. We formally model this game and show its utility in analyzing the security of pool protocols that dictate how financial rewards are shared among the members of a pool. As a case study, we analyze the Bitcoin crypto currency which attracts computing power roughly equivalent to billions of desktop machines, over 70 of which is organized into public pools. We show that existing pool reward sharing protocols are insecure in our game-theoretic analysis under an attack strategy called the "block withholding attack". This attack is a topic of debate, initially thought to be ill-incentivized in today's pool protocols: i.e., causing a net loss to the attacker, and later argued to be always profitable. Our analysis shows that the attack is always well-incentivized in the long-run, but may not be so for a short duration. This implies that existing pool protocols are insecure, and if the attack is conducted systematically, Bitcoin pools could lose millions of dollars worth in months. The equilibrium state is a mixed strategy -- that is -- in equilibrium all clients are incentivized to probabilistically attack to maximize their payoffs rather than participate honestly. As a result, the Bitcoin network is incentivized to waste a part of its resources simply to compete. A novel power attack resistant cryptosystem is presented in this paper. Security in digital computing and communication is becoming increasingly important. Design techniques that can protect cryptosystems from leaking information have been studied by several groups. Power attacks, which infer program behavior from observing power supply current into a processor core, are important forms of attacks. Various methods have been proposed to countermeasure the popular and efficient power attacks. However, these methods do not adequately protect against power attacks and may introduce new vulnerabilities. In this work, we addressed a novel approach against the power attacks, i.e., Dynamic Voltage and Frequency Switching (DVFS). Three designs, naive, improved and advanced implementations, have been studied to test the efficiency of DVFS against power attacks. A final advanced realization of our novel cryptosystem was given out, which achieved enough high power trace entropy and time trace entropy to block all kinds of power attacks, with 27 energy reduction and 16 time overhead for DES encryption and decryption algorithms. This talk will discuss issues and methods for survivability of systems under malicious attacks. To protect from such attacks, it is necessary to take steps to prevent attacks from succeeding. At the same time, it is important to recognize that not all attacks can be averted at the outset; attacks that are successful to some degree must be recognized as unavoidable and comprehensive support for identifying and responding to attacks is required.In my talk, I will describe the recent research on attack graphs that represent known attack sequences attackers can use to penetrate computer networks. I will show how attack graphs can be used to compute actual sets of hardening measures that guarantee the safety of given critical resources. Attack graphs can also be used to correlate received alerts, hypothesize missing alerts, and predict future alerts, all at the same time. Thus, they offer a promising solution for administrators to monitor and predict the progress of an intrusion, and take appropriate countermeasures in a timely manner.