Steemit Crypto Academy Week 5 Task: All About Blockchain Security- Security Problem with Cryptocurrency | lecture by @gbenga
Introduction
It's another great privilege to see another week to learn at the Steemit crypto academy. It's the week 5 and I am glad to learn from professor @gbenga as he lectured on the Blockchain Security. With no doubt, It was a great one. I will be solving the task given at the end of the lecture, discussing about a security problem with cryptocurrency. Be my guest!
Overview of Blockchain Security
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Blockchain as the background of many cryptocurrencies to which they are built on, needs proper security to eliminate attacks from cybercriminals whose actions can make a cryptocurrency asset owner lose their funds. Remember, we have crypto wallets (where users have access to their keys) and crypto exchanges (where exchange platforms only allow users to create password/2FA to protect their accounts.)
Both crypto wallets and crypto exchanges requires proper security which varies greatly from one to another. In the case of crypto wallets, it's the sole responsibility of asset owners to protect their keys from leaking to scammers and crypto exchanges protect their end by securing their platform, nodes and more, leaving the user to do the rest by securing his/her password. Both requires utmost care to protect the assets kept in there.
Basic Cryptocurrency Security
Cryptocurrency security comes in several ways depending on where assets are kept. Crypto wallets are the best when it comes to storing assets (meaning you don't necessarily open such asset to exchange). At the creation of a crypto wallet, a certain set of keys known as Private/Mnemonic key are attached to the account which is recommended for backup while crypto exchanges allows users to create password and also 2FA for strong security of wallets.
Private/Mnemonic keys are of great importance to recover funds or to access one's assets from another device. Private key is a set of letter/number combinations while Mnemonic key is a set of many phrase which range from 12 - 24 words, all for the purpose of securing one's account or account's retrieval.
Securing Private/Mnemonic Key
It is important to secure one's key in a more recommended way. I will give a list below.
- Write the Keys down securely in a piece of paper.
- Keep it laminated.
- Store it in a safe that only you have access to.
- Avoid backing it up online as it can exposed through phishing.
Advanced Threats to Cryptocurrency Security
I've listed a few methods to which an account owner can get their assets secured but there is more to it. Cryptocurrency security goes beyond the personal safety of keeping one's key/password safe. Cryptocurrency security tends to become a very complex problem to users and a threat to losing their assets they have laboured to put together.
Cybercriminals utilize several methods to access others crypto wallets and this is a great security problem with cryptocurrency that requires right attention. The Cybercriminals employ some kind of hacking method to steal crypto users wallet details and thereby frivolously proceed with their unauthorized access into the wallets and steal funds.
Some of the attack methods employed are; Cryptojacking, Dusting Attack, Denial of Service Attack and Eclipse Attack. Each of the hacking methods listed above have their ways of operation and I will talk extensively on one of them in this context.
Dusting Attack
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This attack method is carried out by sending what is known as Dust to users account. It's important to tell you what dust is all about, Dust is a fragment of crypocurrency which can be around a few Sats (Satoshi)- for example, 0.00000119BTC.
Dust attackers continually send fragments of cryptocurrency to random users with the aim of tracing the wallet's activities, tracking the activities of such account in preparation for their attack.
When the dust attackers are sure of where your funds are sent into, from time to time then they proceed to the next phase of attack to hack your details through what is known as phishing, by sending links to you, sometimes such links might be promising your some rewards, and if you click the links, then you are already a victim of attack.
The links shared by dusk attackers have crypto mining scripts programmed to crawl into your crypto wallets and start the unauthorized mining of your assets which tend to make you lose all your funds if care is not taken.
Source
How to Know if you are under or about to be under Dust Attack.
Constant receiver of fragments of cryptos from unverified sources is a sign that your account is getting attention from some people.
Noticing your device is working than usual and tend to overheat. This could be a signal that additional visitors are eating on your device in the background.
Lower performance of your device noticed. When your device tend to be slower that usual.
All above listed points can be a sign of an attack that has graduated from mere Dust.
How to avoid Dusting Attack
The best way to avoid the occurrence of Dusting attack is avoiding strange links, don't click on any link if possible. If you receive fragments of cryptos in your wallet with link in the memo, don't click it.
Don't move the dust. As this can give attackers wide space to track who the account owner is, through transactions of the dust moved.
If you eventually got attacked through dust, it's important that you eliminate all affected softwares. Proper restoration of the affected softwares/operating system is required.
Experience
I don't have a personal experience as regards a dust attack, although, I've received several dusts before but I was not pushed to click strange links.
In conclusion, security of your Private/Mnemonic key is just the basic security measure to protect your cryptocurrency assets, hence, better security should be employed having learnt about the advanced security threats to cryptocurrency. Do all the needful to protect your hard earned assets. Thanks to the crypto professor @gbenga for his great lecture, I look forward to learn from him and other crypto professors subsequently. Thank you all for reading.
Special Regards;
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @steemitblog
Cc: @gbenga
Written by; @fredquantum
Wow....you have a nice breakdown of Cryptocurrency security problems. Best regards
Sorry for the late review, I voted on your post already and this made me feel I had left a comment. You have done well explaining the dusting attack.
Rating 6
Thank you, sir. I appreciate your review sir.