Decentralized think tank publishes industry update regarding the future of cybersecurity for blockchain exchanges
LONDON, January 2, 2023–(BUSINESS WIRE)–Following the recent FTX debacle, The Decentralized Think Tank released an industry update on the topic of cybersecurity for crypto exchanges. The report explores the importance of data privacy in securing the future of crypto exchanges, alongside naming a number of emerging leaders in the field, including: HUB Security, Fortanix, Microsoft, Intel, Enigma, Crypsis, ChainGuardian and CipherTrace.
The industry update is available below and can be found in its original format here: https://bit.ly/3GbVAjE
Background
The recent FTX incident has highlighted the fact that the greatest danger we face is our own fallibility. It is not blockchain or cryptocurrency that is inherently flawed, but rather the people who use them are flawed.
In many cases, cyber attacks on cryptocurrency exchanges are carried out by external hackers. However, the FTX incident appears to be an “inside job”. One of the most vulnerable points in cyber security is the “use” state, which refers to the moment when data is processed, edited or used by a user or computer for computational purposes and temporarily passes through CPU (Central Processing Unit) and RAM (Random Access Memory ) on a computer.
To date, most cybersecurity companies have focused on protecting data in its “rest” state (when it’s stored) or its “transit” state (when it’s transmitted through lines of communication). The “use” state has not been adequately addressed and is currently a major focus for hardware vendors.
Confidential data processing
A major challenge that cryptocurrency exchanges face is the vulnerability of hot wallets. These are online wallets that are connected to the internet and used for transactions. Hackers often target hot wallets due to their availability, which has led to significant losses for exchanges in the past. For example, resulting Mt. Gox hack in 2014 in the theft of 850,000 bitcoins (worth approximately $450 million at the time) from the exchange’s hot wallet, causing significant damage to the exchange and its users. This incident underscored the need for better security measures to protect hot wallets.
Confidential data processing offers a solution by providing an additional layer of security for data processed in hot wallets. It involves the use of hardware and software technologies to create a secure execution environment, or “enclave”, where sensitive data can be processed without being exposed to the rest of the system.
A hardware technology that is often used in connection with confidential data processing is the hardware security module (HSM). HSMs are specialized hardware devices that protect sensitive data by storing it in a secure, tamper-proof environment. They are often used to store and protect cryptographic keys, certificates and other sensitive data used in various security-related operations.
In the context of confidential data processing, HSMs can be used to protect data as it passes through the CPU and RAM of a computer. When data is processed in an enclave, it is usually encrypted and stored in the HSM. This helps ensure that the data is completely protected from unauthorized access or tampering, even if an attacker were to gain access to the CPU or RAM of the computer.
By using HSMs in combination with confidential data processing, it is possible to create a secure environment where sensitive data can be processed without being exposed to the rest of the system. This helps ensure that the data is fully protected from cyber threats, even in the event of a hack or other attack.
To create this secure execution environment, confidential computing relies on a combination of hardware and software technologies. On the hardware side, it often involves the use of specialized processors, such as Intel SGX (Software Guard Extensions), which provide hardware-based isolation for code and data. On the software side, confidential computing typically involves the use of specialized programming languages and libraries designed to work with these hardware technologies to provide secure execution environments. Overall, confidential data management is an important component of any comprehensive cyber defense strategy for crypto exchanges. By providing an extra layer of protection for sensitive data, it helps ensure that crypto exchanges are able to operate safely and securely, even in the face of sophisticated cyber threats.
Leading companies in the field
1. HUB Security:
HUB Security is without a doubt the most advanced company in this area. Established by former Israeli military elite intelligence veterans, HUB specializes in providing secure hardware solutions for the protection of hot wallets without the need to “cool down” them by disconnecting them from the online arena. Their solution architecture debuts an HSM-based confidential data platform designed to protect blockchain platforms from cyber threats. The platform could become a must for blockchain exchanges, as the only other current solution is to implement HSM to store and protect sensitive data while being processed in an enclave, to ensure that the data is fully protected from unauthorized access or tampering.
2. Fortanix:
Fortanix is a company that offers a cloud-based confidential data processing platform that uses HSMs to protect sensitive data while it is processed in an enclave. Their platform is designed to be used by businesses in a variety of industries, including financial services, healthcare and government.
3. Microsoft:
American multinational technology company that produces computer software, consumer electronics, personal computers, and related services. Headquartered on the Microsoft campus in Redmond, Washington, Microsoft’s best-known software products are the Windows series of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. The company has been working with confidential computer technologies for several years. They offer a confidential data platform that uses HSMs to protect data while it is processed in an enclave, and have worked with a number of partners to integrate their platform into various blockchain platforms
4. Intel:
Intel is an American multinational corporation and technology company. It is the world’s largest manufacturer of semiconductor chips by revenue, and is one of the developers of the x86 series of instruction sets, the instruction sets found in most personal computers (PCs). Intel is a leading provider of hardware solutions, and has been working with confidential computing technologies for several years. They offer a range of hardware-based solutions for confidential computing, including their SGX (Software Guard Extensions) processors, which are designed to provide hardware-based isolation for code and data. These processors can be used in conjunction with HSMs to provide an additional layer of protection for sensitive data when processed in an enclave.
5. Enigma:
This US-based company offers a confidential data platform that uses HSMs to protect data processed in an enclave. In general, Enigma is a decentralized computing platform that aims to guarantee privacy. Their goal is to enable developers to build “privacy by design”, end-to-end decentralized applications, without a trusted third party.
6. Crypsis:
This US-based company offers a range of cybersecurity solutions, including a confidential data platform that uses HSMs to protect data processed in an enclave. The company offers a range of services including incident response, risk management and digital forensic services.
7. ChainGuardian:
This UK-based company offers a range of cybersecurity solutions, including a confidential data platform that uses HSMs to protect data processed in an enclave
8. CipherTrace:
This US-based company offers a range of cybersecurity solutions, including a confidential data platform that uses HSMs to protect data processed in an enclave.
These are just a few examples of companies using HSMs in conjunction with confidential data processing to protect blockchain platforms. There are many other companies working in this space as well, and the use of HSMs in confidential computing is likely to continue to grow as more organizations seek to improve the security of their blockchain
See the source version at businesswire.com: https://www.businesswire.com/news/home/20230102005039/en/
Contacts
Media contact:
Company name: The decentralized think tank
Email: [email protected]
Website: futuremarketsresearch.com
Contact person: Robert Newman
