End-to-End Encryption: What is End-to-End Encryption, How Does it Work, What Does it Protect From, and More – MySmartPrice

End-to-end Encryption is a popular term used by many big tech companies these days. We have seen big tech companies like Apple, Google, Meta, and Microsoft use this End-to-end Encryption in their apps or services or during a keynote of a major event. End-to-End Encryption is also sometimes referred to as E2EE.

It is a system of communication where only the sender and the receiver will be able to read the message and not any other third parties. Many popular apps and services use E2EE for communication over messages as well as calls. In this article, we will learn more about End-to-end Encryption starting from its definition and then we will take a look at how End-to-end Encryption works. Lastly, we will also take a look at how it protects and the advantages and disadvantages of this service. Lets get started.

Before we jump into the meaning of End-to-end Encryption, let us take a look at what data encryption means. Data encryption is the process of using an algorithm to transfer regular text characters into an unreadable format. This process uses encryption keys to scramble data so that only authorized users can read it.

End-to-end encryption uses this same process too, but it takes a step further by securing communications/messages from one endpoint to another. End-to-end encryption prevents any third parties from accessing data while its transferred from one user device or another device. End-to-end Encryption is also popularly known as E2EE.

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The End-to-end Encryption process starts with cryptography, which is a method for protecting information by transforming it into an unreadable format called ciphertext. Only users who possess a secret key can decrypt the message into plaintext. With E2EE, the sender or creator encrypts the data, and only the intended receiver or reader can decrypt it. Not even hackers or other third parties can access the encrypted data on the server, which makes the data extremely safe. E2EE provides the gold standard for protecting communication.

In End-to-end encryption, the encryption happens at the device level. Meaning, that the messages and files are encrypted before they leave the phone/computer and arent decrypted until it reaches their destination, which can be another phone/computer. This is one of the main reasons that hackers cannot access data on the server because they do not have the private keys to decrypt the data. The secret keys are stored with the individual user on their device which makes it much harder to access an individuals data as well.

The security behind end-to-end encryption is enabled by the creation of a public-private key pair. This process is known as asymmetric cryptography. Asymmetric or public-key cryptography encrypts and decrypts the data using two separate cryptographic keys. The public key is used to encrypt a message and send it to the public keys owner. Thereafter, the message can only be decrypted using a corresponding private key, also known as a decryption key.

In end-to-end encryption, the system creates public and private cryptographic keys for each person who joins.

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Compared to other systems, End-to-end Encryption offers encrypting and decrypting of messages at endpoints only, which is on the senders and receivers devices. The usage of single-key/secret key encryption provides an unbroken layer of encryption from sender to recipient, but it uses only one key to encrypt messages. E2EE also makes sure that the messages are secure and safe from hacks. Since the E2EE messages cant be read on any servers, providers like Google, Apple, Microsoft, etc wont be able to look into your data.

These aforementioned additions make End-to-end Encryption different from any other type of encryption.

With E2EE, messages sent can only be read by the receiver who has the keys to decrypt the message. This means no one can read the messages even on the server because they do not have the private keys to decrypt the data. Only the recipient can read the message. Next, End-to-end encryption also protects against tampering with encrypted messages.

While the key exchange is considered unbreakable using known algorithms, there are certain things that E2EE doesnt protect from. The following can be considered as some of the weaknesses of E2EE.

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While E2EE protects the actual message, the metadata such as date, time, and participants in the exchange are not encrypted.

As said multiple times, E2EE only protects data between the endpoints, This means the endpoints themselves are vulnerable to attack. This is also one of the prime reasons for enterprises to implement endpoint security to prevent data misuse and protect data beyond in-transit.

Although a hacker cant read any message in transit, he/she can impersonate the intended recipient, swap the decryption key and forward the message to the actual recipient without being detected.

Also Read: SBI KYC Update Online: How to Submit State Bank of India KYC Documents Online to Update Your Account

Now that you are aware of what E2EE is and how it works, here are some of the popular apps and services that use E2EE.

Also Read: Masked Aadhaar Card: How to Create Masked Aadhaar Card Using Different Methods

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End-to-End Encryption: What is End-to-End Encryption, How Does it Work, What Does it Protect From, and More - MySmartPrice

Cyber Week in Review: July 7, 2022 – Council on Foreign Relations

Trove of Chinese Police Files Offered for Sale on the Dark Web

An unidentified hacker has listed a database for sale containing the records of over one billion Chinese citizens. The database was likely created by the Shanghai police department and contains informationfrom 1995 to 2019 such as citizens names, phone numbers, birthplaces, and national ID numbers. If the leak is legitimate, it would represent one of the largest disclosures of personal information ever. The hacker posted hundreds of thousands of entries online as proof of the existence and authenticity of the database, and reporters called several people listed in the database, who confirmed their information was correct. In a sign of the severity of the leak, Chinese social media platforms began censoring hashtags such as data leak and Shanghai national security database breach. Researchers speculated that the hacker may have gained access to the data after a developer inadvertently included the login information to the database in a blog post.

Canada's National Police Force Details Use of Spyware to Hack Phones

The Royal Canadian Mounted Police (RCMP) disclosed how they use spyware to infiltrate mobile devices to collect information on serious criminal cases. The agency has admitted to using spyware in ten investigations between 2018 and 2020. RCMP admitted it has previously used spyware to collect a wide range of data including text messages, calendar entries, financial records, and even audio recordings of private conversations or photographic images of surroundings within range of a targeted device. In justifying their use of the spyware, the RCMP noted that the increased use of encrypted communication requires police departments to update their tools to remain effective in the digital era. Spyware has become a major topic in the past year, especially the NSO Groups Pegasus spyware, which has been used improperly by numerous governments worldwide.

The United States Reveals Four Cryptographic Algorithms to Withstand Quantum Computing

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The U.S. Department of Commerces National Institute of Standards and Technology (NIST) has revealed the first group of encryption tools that will be used to protect against quantum computers. Quantum computing has the potential to crack the encryption widely used in vital systems such as online banking and email software. While full-scale quantum computers are likely at least five years away, China has reportedly begun stockpiling encrypted communications in the event that quantum computers are able to decode them later. The four encryption algorithms NIST selected will become part of their post-quantum cryptographic standard that will be released in 2024. Despite the two-year timeline NIST has proposed, the agency strongly recommends that organizations start preparing for the transition immediately by following the Post-Quantum Cryptography Roadmap. Amongst other detailed recommendations, the roadmap suggests organizations take inventory of current cryptographic practices, create a plan for the transition, and alert the organizations IT department of the upcoming transition.

European Union Passes Two Major Technology Regulations

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The European Parliament formally passed two major pieces of digital policy earlier this week, the Digital Services Act, which forces the platforms to take down illegal content more aggressively, and the Digital Markets Act, which bans companies from self preferencing their own apps or services. The two acts are aimed specifically at companies the European Union has termed gatekeepers, large technology companies including Apple, Google, Facebook, and Microsoft, that could stifle competition and deter smaller rivals. Gatekeepers are defined several ways, including both qualitative and quantitative measures such as either 65 billion in global market capitalization, or at least 45 million active monthly users in the EU. T. The acts will also levy fines of up to 10% total worldwide revenue for the previous year, or 20% for companies that repeatedly violate either act. While some internet advocacy groups hailed the passage of the legislation, others said that the agencies tasked with enforcing the laws are still under resourced, which could blunt the effectiveness of the laws.

United States Asks Dutch Semiconductor Equipment Manager to Stop Selling to China

In an effort to thwart the growth of the Chinese microchip manufacturing industry, the U.S. government asked the Dutch government to stop ASML, one of the most prominent manufacturers of photolithographic equipment, from selling machinery to China. Photolithographic systems are essential to the production of newer microchips, and China has struggled to develop a domestic alternative to ASMLs products. ASML is already banned from selling its most advanced equipment to Chinese firms, but U.S. officials are now trying to prevent ASML from selling older generation photolithography systems to China. While restricting sales of photolithographic equipment further would deal a major blow to the Chinese microchip industry, some have argued that the Dutch are unlikely to agree to such an aggressive step, especially given the fact that sales in China account for 15 percent of ASMLs revenue and the damage such a move would do to relations between the Netherlands and China.

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Cyber Week in Review: July 7, 2022 - Council on Foreign Relations

Royal Army accounts hijacked. A hacktivist group claims to have hit Iranian sites. Very large database of PII for sale on the dark web. – The…

At a glance.

Sunday afternoon the British Ministry of Defence Press Officetweeteda terse announcement that the MoD was aware of a cyber incident: "We are aware of a breach of the Armys Twitter and YouTube accounts and an investigation is underway.The Army takes information security extremely seriously and is resolving the issue. Until their investigation is complete it would be inappropriate to comment further." The Army'sown feedtook an apologetic line towards any disappointed followers: "Apologies for the temporary interruption to our feed. We will conduct a full investigation and learn from this incident. Thanks for following us and normal service will now resume." It took the British Army about five hours to wrest back control of its Twitter account, the Telegraphreports.

It's unknown who hijacked the accounts or why, and the MoD isn't saying anything until it understands what happened. The Telegram, quick to suspect the worst of the Russians, asked if the incident was a Russian operation, but the MoD had no comment--as they've said, they're not jumping to conclusions until they know more. Bitdefendernotesthat many have jumped to the conclusion that the incident must have been the work of a nation-state's espionage services, but it has an alternative explanation, arguably more probable: it was possibly crypto bros working an NFT scam. They note that the hijacked YouTube account featured an NFT come-on with the inevitable bogus Elon Musk attribution.

According toreportslast weekend, the group Ghiam Sarnegouni ("Uprising till Overthrow," apparently a group of anti-Tehran hacktivists), conducted a large operation against Iran's Islamic Culture and Communication Organization (ICCO). Six sites were hijacked and fifteen others were defaced with pictures of Iranian Resistance leaders Massoud Rajaivi and Maryam Rajavi. Forty-four servers, a large number of endpoints, and at least thirty-five ICCO databases were wiped. Before the systems were wiped, the hacktivists are believed to have obtained ICCO data that include information about money laundering, front groups, and espionage and terrorist networks. The operation is said to have begun in the last week of January.

In an apparent response to recent nominally hacktivist actions, not only those by Uprising till Overthrow, but also operations attributed last week to Predatory Sparrow, Iran Wirereportsthat Tehran has temporarily suspended Iranians' ability to access bank accounts from abroad. It's a measure whose purpose, the authorities say, is preventing cyber attacks.

Last Sunday, Binance's threat research teamfounda very large database of personally identifiable information exposed in the dark web. "Our threat intelligence detected 1 billion resident records for [sale] in the dark web, including name, address, national id, mobile, police and medical records from one Asian country. Likely due to a bug in an Elasticsearch deployment by a gov agency. This has [an] impact on hacker detection/prevention measures, mobile numbers used for account take overs, etc.It is important for all platforms to enhance their security measures in this area.@Binancehas already stepped upverifications for users potentially affected."

Binance is reticent about the source of the data, but others say it came from the Shanghai National Police. It's not clear who's obtained the information, butaccordingto Bloomberg the data are being offered for ten bitcoin, roughly $200,000. HackReadreportsthat the data include the following kinds of information:

As Binance's tweet suggests, the data exposure appears to be traceable to a misconfiguration, and not a compromise or a breach proper. Reutersputthe total number of people affected by the data exposure at about one billion, but this is in any case based on the claims of someone offering the data for sale. Someone using the nom-de-hack "ChinaDan" posted this message to Breach Forums late last week: "In 2022, the Shanghai National Police (SHGA) database was leaked. This database contains many TB of data and information on Billions of Chinese citizen. Databases contain information on 1 Billion Chinese national residents and several billion case records, including: name, address, birthplace, national ID number, mobile number, all crime/case details. [sic]" Reuters sensibly points out that these claims are so far unverified. The data offered for sale are said to amount in the aggregate to some twenty-three terabytes. It's obviously difficult to confirm the legitimacy of the sample data "China Dan" posted to show that he had the goods, but the Wall Street Journalspot-checkeda few of the items by calling some people whose phone numbers appeared in the tease. The Journal found that in that tiny fraction of a billion or so people, the data were indeed genuine. Chinese authorities have issued no statement so far on the incident.

HackerOnedisclosedlast Friday that a rogue insider, "a then-employee," as the company puts it, had been improperly accessing the bug-bounty platform's vulnerability disclosures with the aim of collecting "additional bounties" from HackerOne customers. Alerted to the problem by a customer (who reported an implausible disclosure, offered with uncharacteristically threatening language), HackerOne investigated and found that an employee had "improperly accessed security reports for personal gain." The improper access ran from April 4th through June 23rd of this year. HackerOne fired the employee, upgraded its security, and is considering referring the former employee for criminal prosecution.

Vade hasobserveda phishing scam consisting of a wave of more than 50,000 emails sent from a malicious Zendesk account. In one campaign, the hacker is seen to be impersonating TrustWallet, an ethereum wallet and cryptocurrency wallet store. The email contains the TrustWallet official logo along with a support link, as well as Zendesks legitimate footer. The email says that an NFT update requires the wallet to be verified and that inaction will result in account suspension. The link provided says Verify your wallet, and is shortened with s.id., which hides the malicious link and provides the phisher with a dashboard of analytics. The page, when opened, displays a 10-second countdown to open their secure internet environment, in order to intentionally appear as a legitimate safety precaution, but rather, leads to the malicious site. The victim is then tasked with entering their recovery phrase to unlock the wallet, accepting both 12 and 24-word variations. The phishing email isnt marred by extensive grammatical errors, as many phishing emails are, but its also not perfect.

The US Cybersecurity and Infrastructure agency (CISA), the FBI, and the US Department of the Treasury have issued a joint alert, "North Korean State-Sponsored Cyber Actors Use Maui Ransomware to Target the Healthcare and Public Health Sector," warning of a North Korean ransomware campaign that's been in progress since at least May of 2021. "North Korean state-sponsored cyber actors used Maui ransomware in these incidents to encrypt servers responsible for healthcare servicesincluding electronic health records services, diagnostics services, imaging services, and intranet services. In some cases, these incidents disrupted the services provided by the targeted HPH Sector organizations for prolonged periods." How the threat actor obtained initial access is unclear, but the warning recommends that organizations pay particular attention to the dangers of phishing, and that they train their personnel to recognize it, which suggests that social engineering has played a significant role in the Maui campaign.

The US National Institute of Standards and Technology (NIST), at the end of a six-year competitive search, hasannouncedthe four winners in its program to develop "quantum-resistant encryption algorithms." This represents a milestone en route to NIST's publication of standards for post-quantum cryptography, expected in 2024. The algorithms are:

"For general encryption,used when we access secure websites, NIST has selected theCRYSTALS-Kyberalgorithm. Among its advantages are comparatively small encryption keys that two parties can exchange easily, as well as its speed of operation.

"For digital signatures,often used when we need to verify identities during a digital transaction or to sign a document remotely, NIST has selected the three algorithmsCRYSTALS-Dilithium,FALCONandSPHINCS+(read as Sphincs plus). Reviewers noted the high efficiency of the first two, and NIST recommends CRYSTALS-Dilithium as the primary algorithm, with FALCON for applications that need smaller signatures than Dilithium can provide. The third, SPHINCS+, is somewhat larger and slower than the other two, but it is valuable as a backup for one chief reason: It is based on a different math approach than all three of NISTs other selections."

Taking note of NIST's announcement, the US Cybersecurity and Infrastructure Security Agency (CISA)outlinessome steps organizations can take now, as they prepare for developments over the next two years:

"Although NIST will not publish the new post-quantum cryptographic standard for use by commercial products until 2024, CISA and NIST strongly recommend organizations start preparing for the transition now by following thePost-Quantum Cryptography Roadmap, which includes:

MoodysInvestors Service released a report detailing the credit implications of Contis early April ransomware attack on the government of Costa Rica. The attack impacted the governments two largest revenue streamsincome taxes and customs duties, and impacted the international trade and healthcare sectors most heavily. The report notes that this attack provides insights on the governments strength, saying that while the attacks werent prevented, they were handled with effective solutions. Moodys anticipates the fiscal deficit to remain close to 4.8% GDP, and expects to see GDP growth of 4% in 2022.

In another report,Moodysdiscusses the recent cyberattack on Clarion Housing Group in the United Kingdom, and its implications for housing associations as a whole. On June 23, Clarionreporteda cyberattack on their IT systems that impacted IT operations, such as scheduling repairs and maintenance. This attack comes on the heels of a number of other cyberattacks on housing associations in the past few years, and highlights the need for cyber risk mitigation. According to a recent cyber survey conducted by Moodys, cyber risk remains small in the housing sector, but is growing strongly, with 25% spending growth from 2018 to 2020.

In a joint appearance Wednesday at the London headquarters of MI-5, the British counterintelligence organization, the directors of MI-5 and the US FBI issued an unusually direct and bluntly worded warning about the threat of Chinese industrial espionage, much of it cyberespionage. The effort is extensive, focused, and marked by both close attention to detail and an unusually wide net.The Chinese government is set on stealing your technologywhatever it is that makes your industry tickand using it to undercut your business and dominate your market, FBI Director Wray told an audience the Wall Street Journaldescribedas composed of "business people." Theyre set on using every tool at their disposal to do it. China disagrees. A representative of Beijing's embassy in Washington, Liu Pengyu, complained of U.S. politicians who have been tarnishing Chinas image and painting China as a threat with false accusations.

CobaltStrike is often mentioned in dispatches as a penetration testing tool that threat actors often turn to malign use. Other such tools are also susceptible to abuse. Palo Alto Networks' Unit 42reportsthat Cozy Bear, generally regarded as a unit of Russia's SVR, is deploying Brute Ratel C4, a pentesting tool in use since December 2020, in a range of cyberespionage campaigns. Unit 42 doesn't formally attribute the campaign to Cozy Bear or even Russia, but it does offer circumstantial evidence that points in that direction:

"This unique sample was packaged in a manner consistent with knownAPT29techniques and their recent campaigns, which leveraged well-known cloud storage and online collaboration applications. Specifically, this sample was packaged as a self-contained ISO. Included in the ISO was a Windows shortcut (LNK) file, a malicious payload DLL and a legitimate copy of Microsoft OneDrive Updater. Attempts to execute the benign application from the ISO-mounted folder resulted in the loading of the malicious payload as a dependency through a technique known as DLL search order hijacking. However, while packaging techniques alone are not enough to definitively attribute this sample to APT29, these techniques demonstrate that users of the tool are now applying nation-state tradecraft to deploy BRc4."

The tools used in the campaign are regarded as unusually evasive and difficult to detect.

Researchers at ReversingLabsdetailedtheir discovery of a widespread supply chain attack against the NPM repository earlier this week, publishing an update on Wednesday. Though the exact scope of the attack wasn't initially clear, researchers say the packages are potentially used by thousands of mobile and desktop applications and websites, and in one instance a malicious package had been downloaded over 17,000 times. ReversingLabs called the campaign "IconBurst." Their conclusion is that IconBurst represents a major software supply chain attack "involving more than two dozen NPM modules used by thousands of downstream applications, as indicated by the package download counts." Application developers should be particularly alert to the problem, which appears to represent an organized, cooperative criminal effort. "Analysis of the modules reveals evidence of coordination, with malicious modules traceable to a small number of NPM publishers, and consistent patterns in supporting infrastructure such as exfiltration domains."

IconBurst "marks a significant escalation in software supply chain attacks," ReversingLabs says. The firm communicated its findings to the NPM security team on July 1st, 2022: "Malicious code bundled within the NPM modules is running within an unknown number of mobile and desktop applications and web pages, harvesting untold amounts of user data. The NPM modules our team identified have been collectively downloaded more than 27,000 times. As very few development organizations have the ability to detect malicious code within open source libraries and modules, the attacks persisted for months before coming to our attention. While a few of the named packages have been removed from NPM, most are still available for download at the time of this report."Developers, ReversingLabs says, should "assess their own exposure" to the threat, and the researchers have provided information that should assist them in doing so.

And there's been another attack on the NPM supply chain, this onedescribedby researchers at Checkmarx. "Checkmarx SCS team detected over 1200 npm packages released to the registry by over a thousand different user accounts," the security firm says. "This was done using automation which includes the ability to pass NPM 2FA challenge." The operators, whom the researchers call "CuteBoi," are using what Checkmarx calls a "fake identity-as-a-service provider:" "Looking at the domains with which CuteBoi is creating NPM users, we can deduce that they are usingmail.tm- a free service providing disposable email addresses with REST API, enabling programs to open disposable mailboxes and read the received emails sent to them with a simple API call. This way CuteBoi can and easily defeat NPM 2FA challenge when creating a user account."

And so far the operation seems to represent an initial, experimental phase of a larger campaign. "This cluster of packages seems to be a part of an attacker experimenting at this point." The researchers think that CuteBoi is preparing a large-scale cryptojacking campaign using XMRig derivatives. Checkmarx has also released information to help users identify the malicious activity. They also warn that further exploitation of NPM can be expected. "CuteBoi is the second attack group seen this year using automation to launch large-scale attacks on NPM. We expect we will continue to see more of these attacks as the barrier to [launch] them is getting lower."

Bravo, Emsisoft. The company has released, BleepingComputerreports, free decryptors for the AstraLocker and Yashma ransomware strains. Emsisofttweeted, "The AstraLocker decryptor is for the Babuk-based one using .Astra or .babyk extension, and they released a total of 8 keys. The Yashma decryptor is for the Chaos-based one using .AstraLocker or a random .[a-z0-9]{4} extension, and they released a total of 3 keys." BleepingComputer points out thatAstraLocker, itself derived from Babuk Locker, has gained a reputation for being both buggy and effective. The operators of AstraLocker early this week released some decryptors as theyannouncedthey were exiting the ransomware business, saying that they had decided to turn to cryptomining. They were probably kidding about getting into coin-mining. Not only did they close their announcement with an "LOL," but there's also some reason to think they were feeling the approach of law enforcement.

The US Cybersecurity and Infrastructure Security Agency (CISA) hasaddedan entry to its Known Exploited Vulnerabilities Catalog:CVE-2022-26925, an issue with Microsoft Windows Local Security Authority (LSA) that amounts to "a spoofing vulnerability where an attacker can coerce the domain controller to authenticate to the attacker using NTLM." Theprescribed mitigationis to apply Microsoft's June patch, which agencies under CISA oversight must do by close-of-business, July 22, 2022.

CISA, the US Cybersecurity and Infrastructure Security Agency, released threeIndustrial Control Systems AdvisoriesThursday, forRockwell Automation MicroLogix("mitigations for an Improper Restriction of Rendered UI Layers or Frames vulnerability in the Rockwell Automation MicroLogix controllers"),Bently Nevada ADAPT 3701-4X Series and 60M100("mitigations for Use of Hard-coded Credentials and Missing Authentication for Critical Function vulnerabilities in the Bently Nevada ADAPT 3701-4X Series and 60M100 machinery monitors"), andMitsubishi Electric MELSEC iQ-R Series C Controller Module (Update B)(a follow-up to ICSA-21-280-04 Mitsubishi Electric MELSEC iQ-R Series C Controller Module (Update A) published October 28, 2021, this "contains mitigations for anUncontrolled Resource Consumption vulnerability in Mitsubishi Electric MELSEC iQ-R Series C controller module products").

Apple has released a new, highly secure Lockdown Mode to protect users at risk of targeted attacks, Computer World reports. Lockdown Mode significantly limits the functions of an enabled device, which aids in protecting the user from "mercenary" surveillance threats. The addition of this feature closely follows the company's suit against NSO Group, which was filed in November to "hold it accountable for the surveillance and targeting of Apple users," according to a press release. The company added a new category to the Apple Security Bounty program, offering up to $2 million to researchers that can find bypasses for Lockdown Mode, as well as making a $10 million grant to support organizations involved in investigating, exposing, and preventing targeted cyberattacks, which will be given to the Ford Foundation's Dignity and Justice Fund.

Reuters reports that mercenary hackers are being used to sway litigation battles. Indian hackers attempting to steal documents via password-stealing emails from companies involved in litigation have been identified by Reuters 35 times since 2013. At least 75 US and European companies, three dozen advocacy and media groups, and numerous Western business executives have been targeted in these campaigns. At least 11 groups of victims had emails publicly leaked or submitted into evidence, and it was found that stolen documents often shaped the verdict. Lawyers of targets often also fell victim to the hackers, with around 1,000 attorneys at 108 different law firms found to be targeted. The FBI has been investigating the hacks since at least 2018, with the goal of finding who hired these hackers.

The United Kingdom is trying to nip foreign disinformation in the bud, Bloomberg reports. The UK is amending its upcoming new online safety law, requiring social media apps and search engines to curb "state-linked disinformation" or face fines. The Department for Digital, Culture, Media and Sport said in a statement that "social media platforms, search engines and other apps and websites allowing people to post their own content will have a legal duty to take proactive, preventative action to identify and minimise peoples exposure to state-sponsored or state-linked disinformation aimed at interfering with the UK." Security Minister Damian Hinds also said in the statement, "Disinformation is often seeded by multiple fake personas, with the aim of getting real users, unwittingly, then to share it. We need the big online platforms to do more to identify and disrupt this sort of coordinated inauthentic behaviour. That is what this proposed change in the law is about."

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Royal Army accounts hijacked. A hacktivist group claims to have hit Iranian sites. Very large database of PII for sale on the dark web. - The...

Dozens of cryptography libraries vulnerable to private key theft – The Daily Swig

Ben Dickson28 June 2022 at 15:38 UTC Updated: 28 June 2022 at 17:20 UTC

Signing mechanism security shortcomings exposed

A poor implementation of Ed25519, a popular digital signature algorithm, has left dozens of cryptography libraries vulnerable to attacks.

According to Konstantinos Chalkias, a cryptographer at MystenLabs who discovered and reported the vulnerability, attackers could exploit the bug to steal private keys from cryptocurrency wallets.

Some but not yet all of the vulnerable technologies have been patched.

Ed25519 is often used as a modern replacement for the Elliptic Curve Digital Signature Algorithm (ECDSA). Ed25519 is more open, secure, and faster than ECDSA, which is why it has become very popular in many sectors, especially in blockchain and cryptocurrency platforms.

The main benefits against ECDSA is that EdDSA sig[nature]s are deterministic and users dont need [access to] a secure Random Number Generator [RNG] to sign a transaction, Chalkias told The Daily Swig. Why is this useful? because a users laptop or IoT device might not have a good source of entropy or support a weak RNG function.

Numerous security incidents have shown that poor random generation can result in private keys being leaked or stolen. One notable example was the private key leaks of PlayStation 3, whose technology relies on the ECDSA algorithm.

The standard specification of Ed25519 message signing involves providing the algorithm with a message and private key. The function will use the private key to compute the public key and sign the message. Some libraries provide a variant of the message signing function that also takes the pre-computed public key as an input parameter. There are some benefits to this implementation.

Recomputing the public key each time would result in a slower algorithm (it adds an extra scalar to elliptic curve point multiplication to derive the public key, which reduces the speed by almost 2x, potentially making it even slower than ECDSA), Chalkias said.

Read more of the latest hacking news from around the world

And generally, in cryptography, its good hygiene to avoid accessing the private key many times. If we allowed the public key derivation on each signing invocation, then this implies we need to access it twice, once to sign, and once to derive the public key.

However, the modification also creates a security loophole in the library.

Chalkias found that some libraries were allowing arbitrary public keys as inputs without checking if the input public key corresponds to the input private key. This shortcoming means that an attacker could use the signing function as an Oracle, perform crypto-analysis and ultimately get at secrets. For example, an attacker who cant access the private key but can access the signing mechanism through an API call could use several public keys and messages to gradually build up insights into private key parameters.

Chalkias initially found 26 libraries that were vulnerable to the attack. The list was later extended to 40 libraries. The security researcher also found several online services that were vulnerable to the same kind of attack, including a fintech API.

In some applications when keyGen fails or a clean-up process deletes the privKey for this user, then the app usually retries keyGen. But in the meantime and for a few sec[ond]s, the DB [database] still stored the old , and this allowed a narrow window for race condition attacks before the DB gets updated with the new pubKey (a scenario that, surprisingly, we managed to exploit with significant probability), Chalkias noted.

Since his report, several libraries have implemented fixes and workarounds, including ed25519-elisabeth, PASETO, and Trezor wallet.

A few libraries [have] already provided either fixes (if they were vulnerable) or proactively added extra checks that the stored pub key corresponds to the private keys, Chalkias concluded.

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Dozens of cryptography libraries vulnerable to private key theft - The Daily Swig

FACT SHEET: The United States Continues to Strengthen Cooperation with G7 on 21st Century Challenges, including those Posed by the People’s Republic…

Today President Biden met with G7 leaders tostrengthenour cooperation on economic issues, cyberspace and quantum, andother 21stcenturychallenges, including thoseposed by Chinato our workers, companies, and national security.The G7, representing over 50% of the world economy, is demonstrating that it is among the most potent institutions in the world today, with like-minded democracies solving problems.

Committing to a unified approach to confront Chinas unfair economic practices:The G7 will release collective, unprecedented language acknowledging the harms caused by the Peoples Republic of Chinas (PRC) non-transparent, market-distorting industrial directives. They will commit to working together to develop a coordinated approach to remedy the PRCs non-market policies and practices to ensure a level playing field for businesses and workers.

Elevating supply chain resilience:The G7 will share insights and best practices to identify, monitor, and minimize vulnerabilities and logistic bottlenecks in advance of supply chain shocks, as well as coordinate on long-term risk that undermine global security and stability. The G7 will make a commitment tointensifydevelopment ofresponsible, sustainable, and transparentcritical minerals supply chains and establish a forward strategy that takes into account processing, refining and recycling.

Cooperating on Cyber and QuantumTechnology:The G7 will make a commitment to intensify and elevate our cyber cooperation; working with our close partners to achieveaccountability and increasing stability and security in cyberspace. The G7 will also commit to new cooperation to deploy quantum resistant cryptography with the goal of ensuring secure interoperability between ICT systems and fostering growth in the digital economy.

AdvancingTrade and Technology Council standards for democratic, market-oriented approaches to trade:The G7 will include a commitment tostandards in technology, trade and innovationthat represent our values as G7 partners compete with China.Through fora, such as theU.S.-EUTrade and Technology Council, we will demonstrate to the world how democratic and market-oriented approaches to trade, technology, and innovation can improve the lives of our citizens and be a force for greater prosperity.

Improving the multilateral framework for debt restructuring:The G7 will underscore its commitment to successfully implementing the G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative. The G7 will urge all relevant creditors, including non-Paris Club countries such as China and private creditors, to contribute constructively to the necessary debt treatments as requested. The G7 will also reaffirm its commitment to promoting transparency across all debtors and creditors for improved debt sustainability.

Committing to tackle forcedlaborandupholdinghuman rights:The G7willcondemna range of human rights abuses occurring globally, including abuses linked toRussias further invasion of Ukraine,thePRCs repression in Xinjiang and Tibet,the military coup in Burma,andongoing suppression of freedom in Iran.The G7willalsocommitdtoaccelerate progress totackle forced labor,with the goal of removing all forms of forced labor from global supply chains, including state-sponsored forced labor, such as in Xinjiang. G7 countriescommittedto takefurthermeasures to strengthen cooperation, including through increased transparency and business risk advisories, and other measures to address forced labor globally.As one important example of action to combat forced labor in the PRC, the United States is implementing the Uyghur Forced Labor Prevention Act, which President Biden signed into law in December 2021.

Reaffirmingthe Importance of Democratic Resilience:TheG7 Leaders along with the leaders of Argentina, India, Indonesia, Senegal, and South Africa releasedastatementon Democratic Resilience,affirmingthe importance of strengthening resilience to authoritarian threats within our own democracies and around the world.ThisStatement will amplify the shared democratic values across G7 countries; condemn Russias invasion of Ukraine as an attack on democracy; affirm the importance of civil society and independent media; and outline how G7 members will strengthen actions in response to rising foreign threats related to illicit finance and corruption, foreign malign influence, and transnational repression.

###

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FACT SHEET: The United States Continues to Strengthen Cooperation with G7 on 21st Century Challenges, including those Posed by the People's Republic...

Can Crypto Still Save The World? – Forbes

Its been a nightmare couple months for cryptocurrency investors. Theyve watched their Bitcoin BTC holdings hemorrhage 70 percent of their value since the record high of $69,000 back in November. Overall, theyve suffered crypto losses totaling more than half (55%) of capitalization, or an estimated market loss of $2 trillion.

The days when crypto enthusiasts could talk about crypto as if Bitcoin were the new reserve currency, or the digital equivalent of the gold standard, or even a transformation of what it means to invest, are over. Crypto looks more like a classic boom and bust investment, like Dutch tulips, rather than the next best hope for humanity.

PARIS, FRANCE - FEBRUARY 06: In this photo illustration, a visual representation of the digital ... [+] Cryptocurrency, (Photo by Chesnot/Getty Images)

As I warned in an earlier Forbes column, the crypto boom was driven by systematic policy failures by major central banks. As long as they made bad decisions about monetary supply or failed to take on inflation, cryptocurrencies were going to look like solid investments. As soon as central banks shook off their inertia, crypto values started heading south. Meanwhile, the threat of regulation of the crypto marketregulations that might strangle the Bitcoin goosehas raised additional uncertainties about where the market is headed, and whether it pays to buy low nowor run for the hills.

Nonetheless, as Bloomberg reports, venture capitalists still want in the crypto game. Theyre being smart. They sense that despite the burst bubble since January, cryptocurrencies will be here to stay. They may not save humanity from itself, as some thought, but they remain a valuable speculative instrument but also a store of value when other investments look uncertain or too volatile to handle.

At the same time, Bitcoin and crypto do offer a deeper secret that is important to the rest of humanity. That secret isnt what they do, but how they do it. i.e. with Distributed Ledger Technology or blockchain.

An abstract digital structure showing the concept of blockchain technology with hexadecimal hash ... [+] data inside each block.

We can think of blockchain as an enormous spreadsheet thats reproduced thousands of times across a network of computers, that regularly updates the spreadsheet and its common database. The growing list of records in the ledger, called blocks, are linked or chained together to all previous blocks of transactions, using a cryptographic fingerprint known as a hash. Each transaction is independently verified and confirmed by peer-to-peer computer networks, time-stamped, and then added to the distributed ledger. Once recorded, the data cannot be alteredand its only shared with those who are part of the encrypted ledger.

Former SEC Chairman Jay Clayton has predicted that blockchain is the future of our financial markets, including digital currencies. High-tech guru George Gilder sums up the future of blockchain this way: Even though bitcoin may not, after all, represent the potential for a new gold standard, its underlying technology will unbundle the roles of money. Blockchain may even represent the future of the Internet.

There is, however, a cloud hovering over the DLT future, a quantum cloud.

This column pointed out back in 2018 that DLT was vulnerable to future quantum computer attack. Our latest report from the Quantum Alliance Initiative at the Hudson Institute, gives some idea of the cost of such a future quantum computer assault. Our econometric calculations indicate that such an attack would amount to $1.8 trillion in direct losses, with an additional loss of $1.4 trillion in indirect impacts. Taken together, a successful quantum computer decryption of cryptocurrencys most valuable assetits blockchain encryptionwould result in a $3.34 trillion hit on the U.S. economy, with negative ripple effects across the global economy for a long time to come.

Stablecoins doesnt fare any better in this scenario. Since these crypto instruments are pegged to 1:1 ratios with fiat currencies, the resulting liquidity crunch as margin calls come due and banks scramble to cover losses, means they too become quantum road kill.

Whats the answer? As weve mentioned in other columns, crypto companies need to adopt quantum-safe encryption to protect their future. That means either installing post-quantum cryptographic algorithms like the ones being standardized by the National Institute of Standards and Technology or turning to quantum-based cryptography, which uses quantum random number generators and quantum key distribution to create hack-proof communication links across the ledger.

There are even quantum security companies that offer both.

Likewise, it would make sense for a government regulatory crypto regime to require installing quantum-safe solutions for the entire industry. Making cryptocurrencies quantum secure could even set the next cryptographic standard for the rest of the financial sector, from banks to equity and credit markets.

Either way, the future of blockchain, like the future of crypto, hangs in the balance. So will the future of the U.S. economy, unless we start getting smart about the quantum threat to come.

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Can Crypto Still Save The World? - Forbes

Features That Distinguish Bitcoin from the Other Assets – Telemedia Online

Bitcoin has gained worldwide popularity, distinguishing itself as a unique asset class. Institutional bankers and private and public corporations are also adding this digital money into their portfolios. On the other hand, this digital money is significantly different from conventional currency. Here are a few features that differentiate Bitcoin System from traditional assets.

Stocks restate, and fiat currency is controlled to varying degrees by the government. However, this digital money is the first truly decentralized asset. Bitcoins network aims to keep power decentralized. Instead, the networks algorithm determines supply and distribution.

As a result, this electronic money doesnt have a single entity controlling it. Instead, anyone accessing the internet can technically join the Bitcoin network and add the asset to their portfolio. The peer-to-peer structure is Bitcoins core feature and distinguishes it from every other asset class.

Every transaction on this digital money network remains on a block linked to a previous block of transactions. This blockchain technology is immutable, meaning no entity can erase or alter any information on the network. Transactions on this virtual money are verified by network nodes through cryptography and recorded in the blockchain. More so, a blockchain is a public ledger.

The distinguishing feature of immutability makes the network reliable and trustworthy. It makes it stand out from all other asset classes where a lack of transparency, forgery, or corruption could pose a risk to the investor.

With this electronic money, you cannot tell how much of this virtual money a person can own, but at the same time, it is visible to everyone on the ledger board how much transaction has been made by which user and who are the recipients of the Bitcoin. As a result, Bitcoin transactions are crystal clear to everyone in the ecosystem of Bitcoin. Also, from this mentioned history on the ledger board, on a proper analysis, anyone in the network can know the asset owned by another person if they want. However, network participants can do a lot of things to prevent this.

When comparing this digital money transaction to other banks or other methods of commerce, Bitcoin transactions are exceptionally fast. People can send funds using Bitcoin viahttps://bitcoinprime.software/within a few minutes. On the other hand, when you send such an amount using banks, the transactions will take weeks to go through successfully.

Generally, banks take long documentation and procedures for opening and managing an account, including dealer records and credit checks. Also, they consider legal aspects and implications of their operations when dealing with electronic money. On the other hand, you can make an address in Bitcoin in a few seconds without any need for legal documents. You only need to set a strong password and not forget it because once the password is gone there is no getting it back.

Since the creation of this electronic money, Bitcoin has gradually become a mainstream asset. More so, estimates suggest that there are over 100 million active Bitcoin users worldwide. The popularity of this electronic money makes it more valuable. Also, Bitcoin is considered a legitimate store of value, and many people use it. And this gives it more liquidity and acceptability than most other traditional assets.

All the above features, including censorship resistance, hard-capped, and immutability, are among the many features that make this electronic money stand out from the other assets.

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Features That Distinguish Bitcoin from the Other Assets - Telemedia Online

Why Passkeys Will Be Simpler and More Secure Than Passwords – TidBITS

Apple has unveiled its version of passkeys, an industry-standard replacement for passwords that offers more security and protection against hijacking while simultaneously being far simpler in nearly every respect.

You never type or manage the contents of a passkey, which is generated when you upgrade a particular website account from a password-only or password and two-factor authentication login. Passkeys overcome numerous notable weaknesses with passwords:

After a test run with developers over the last year, Apple has built passkey support into iOS 16, iPadOS 16, macOS 13 Ventura, and watchOS 9, slated for release in September or October of this year. These operating systems will store passkeys just as they do passwords and other entries in the user keychain, protected by a device password or passcode, Touch ID, or Face ID. Passkeys will also sync securely among your devices using iCloud Keychain, which employs end-to-end encryptionApple never has access to passkeys or other iCloud Keychain data.

Best of all, perhaps, is that Apple built passkeys on top of a broadly supported industry standard, the W3C Web Authentication API or WebAuthn, created by the World Wide Web Consortium and the FIDO Alliance, a group that has spent years developing approaches to reduce the effectiveness of phishing, eliminate hijacking, and increase authentication simplicity for users. Apple, Amazon, Google, Meta (Facebook), and Microsoft are all FIDO board members, as are major financial institutions, credit card networks, and chip and hardware firms.

Many websites and operating systems already support WebAuthn via a hardware key like the popular ones made by Yubico. You visit a website, choose to log in using a security key, insert or tap a button on the hardware key, and the browser, operating system, and hardware key all talk together to complete the login. A passkey migrates the function of that hardware key directly into the operating systemno extra hardware required. Websites that already support hardware-based WebAuthn should be able to support passkeys with little to no effort, according to Apple.

Before we get started, note that Apple writes passkey in lowercase, an attempt to get us to use it alongside password, passcode, and passphrase as a common concept. Google, Microsoft, and other companies will offer compatible technology and may also opt for the generic passkey name. While new terminology can cause confusion, passkey is better than the more technically descriptive multi-device FIDO credentials, which doesnt exactly roll off the tongue.

Lets dig in to how passkeys work.

Passkeys rely on public-key cryptography, something weve been writing about at TidBITS for nearly 30 years. With public-key cryptography, an encryption algorithm generates a secret thats broken into two pieces: a private key, which you must never disclose, and a public key, which you can share in any fashion without risk of exposing the private key. Public-key cryptography underpins secure Web, email, and terminal connections; iMessage; and many other standards and services.

Anyone with a persons public key can use it to encrypt a message that only the party who possesses the private key can decrypt. The party who has the private key can also perform a complementary operation: they can sign a message with the private key that effectively states, I validate that I sent this message. Crucially, anyone with the public key can confirm that only the private keys possessor could have created that signature.

A passkey is a public/private key pair associated with some metadata, such as the website domain for which it was created. With a passkey, the private key never leaves the device on which it was generated to validate a login, while a website holds only the corresponding public key, stored as part of the users account.

To use a passkey, the first step is to enroll at a website or in an app. Youre likely familiar with this process from any time you signed up for two-factor authentication at a site: you log in with existing credentials, enable 2FA, receive a text message or scan a QR code into an authentication app or your keychain (in iOS 15, iPadOS 15, and Safari 15 for macOS), and then verify your receipt.

With a passkey, the process is different. When you log in to a website offering passkey authentication, you will have an option to upgrade it to a passkey in your accounts security or password section. The website first generates a registration message that Apples operating systems will interpretit happens at a layer you never see. In response, your device creates the public/private key pair, stores it securely and locally, and transmits the public key to the website. The site can then optionally issue a challenge for it and your device can present it to confirm the enrollment.

On subsequent visits, when youre presented with a login, your iPhone or iPad will show the passkey entry in the QuickType bar and Safari in macOS will show it as a pop-up menu. In both cases, thats just like passwords and verification codes today. As with those login aids, youll validate the use of your passkey with Touch ID, Face ID, or your device passcode, depending on your settings.

Behind the scenes, your request to login via a passkey causes the site server to generate a challenge request using the stored public key. Your device then has to build a response using your stored private key. Because you initiate a passkey login by validating your identity, your device has access to your passkeys private key when the challenge request comes in and can respond to the challenge without another authentication step. The server validates your devices response against your stored public key, ensuring that you are authorized for access. If it all checks out, the website logs you in.

A passkey replaces two-factor authentication, and its worth breaking down why, as it seems counter-intuitive: how can a single code held on a device provide distinct aspects of confirmation? The rubric for multiple security factors is usually stated as at least two of something you know, something you have, or something you are. A passkey incorporates at least two of those:

Think for a moment about the advantages here. A passkey:

Apple stores each passkey as just another entry in your keychain. If you have iCloud Keychain enabled, the passkeys sync across all your devices. (iCloud Keychain requires two-factor authentication enabled on your Apple ID; Apple hasnt said if passkeys will replace its internal use of 2FA for its user accounts.)

You can share a passkey with someone else using AirDrop. This means you have to be in proximity to the other person, another element in security. The details are shared through end-to-end encryption, allowing the private key and other data to be passed without risk of interception. Apple hasnt provided much more detail than that AirDrop sharing is an option, so there may be other provisos or security layers.

Because passkeys replace passwords and a second factor, you may be reasonably worried at this point about losing access to your passkeys if youre locked out of your Apple ID account or lose all your registered devices. Apple has several processes in place for recovering Apple ID account access and broad swaths of iCloud-synced data. For an Apple ID account, you can use Apples account recovery process or an account Recovery Key. For iCloud data, if youve enabled the friends-and-family recovery system, iCloud Data Recovery Service, you can use that to re-enable access. After you recover account access, Apple has an additional set of steps that enable you to retrieve iCloud Keychain entries: it involves sending a code via SMS to a registered phone number and entering a device passcode for one of the devices in your iCloud-synced set.

This is all a fabulous reduction in the potential for successful attacks against your Internet-accessible accounts. But theres more: Apple isnt building yet another walled garden. Instead, passkeys are part of a broad industry effort with which Apple says its implementation will be compatible.

Apple built its passkey support on top of the previously mentioned WebAuthn standard, which describes the server side of how to implement a Web-based login with public-key cryptography. FIDO created standards for the client side of that equation and calls the combination of its protocol and WebAuthn FIDO2. Apple developed its own client-side approach thats compatible with standard WebAuthn servers and should be interchangeable with other companies rollouts of passkeys. Google, Microsoft, and Apple made a joint announcement in May 2022committing to this approach, too.

In Apples passkey introduction video for developers, engineer Garrett Davidson emphasized Apples commitment to compatibility, saying:

Weve been working with other platform vendors within the FIDO Alliance to make sure that passkey implementations are compatible cross-platform and can work on as many devices as possible.

He then demonstrated using a passkey on an Apple device to log in to a website on a PC, showing how a QR code could be used to enable a passkey login to one of your accounts on a device or browser thats not connected to your existing devices or ecosystem.

Heres how you might log in to a passkey-enabled account on someone elses PC using your iPhone with your passkey as the authenticator. During the login, you can opt to add a device instead of entering a passkey or other authentication in the browser. The websites server generates a QR code that includes a pair of single-use passwordstheyre generated just for that login and used in the next step for additional validation. (Note that the device with the browser could be any passkey-supporting operating system and device. The authenticating devices might be limited by Apple or other companies to a smaller set, much like you can only use an iPhone to confirm Apple Pay in Safari on a Mac, not a Mac with Touch ID to confirm Apple Pay from an iPhone.)

The PC in our example also starts broadcasting a Bluetooth message that contains the information needed to connect and authenticate directly with the server. Scan that QR code on your iPhone, and the iPhone uses an end-to-end encrypted protocol to create a tunnel with the PCs Web browser using the keys shown in the QR code. (This encrypted connection isnt part of the Bluetooth protocol, by the way, but data tunneled over Bluetooth; Bluetooth doesnt incorporate the necessary encryption strength.)

This Bluetooth connection provides additional security and verification by offering out-of-band elements, or details that the PC isnt presenting to the device thats providing authenticationhere, your iPhone. Because Web pages can be spoofed for phishing attacks, the Bluetooth connection provides a device-to-device backchannel for key details:

This broad device and platform compatibility lets you maintain the same degree of passkey security and simplicity without downgrading to a weaker method for login when accessing your account using other peoples devices. Whenever theres a way to force a weaker login method, malicious parties will exploit that via phishing, social engineering, or other interception techniques. (Providing a second factor via an SMS text message versus a verification code is a prime example of a weaker backup approach that has been exploited.) In fact, until passkeys can be used exclusively, password-based logins will have to remain available, and theyll remain vulnerable.

There might be some usability hiccups as passkeys roll out, but they shouldnt be widespread. Its possible, for instance, that some WebAuthn server components will need to be updated or that Apple will have to add more edge cases to its framework to encompass how things work in the wild.

But imagine a world in which you can securely log in to websites using any current browser on any device running any modern operating system, without having to create, remember, type, and protect passwords. Its relaxing just to think about.

The main question that remains unanswered is how portable passkeys will be among ecosystems: can I use iOS and Android and Windows and share a passkey generated on one among all three? Given that Apple has built an AirDrop-sharing method for passkeys, I hope FIDOs broad compatibility includes sharing passkeys among operating systems, too.

Passwords have provided an uneasy security compromise since their introduction decades ago when multi-user computing systems began to require protection. Passwords are patently imperfect, a relic of an age when physical proximity provided the first level of protection, something rendered moot by the Internet.

In an effort to answer some of the weaknesses in a password system, two-factor authentication was grafted on to require that you had something besides a password, something that required holding or being near an object to validate your right to log into a computer, service, or website. But because 2FA starts with an account password and uses a second method that can be subject to compromise or phishing, it remains a patch applied to a damaged wall.

The passkey is a modern replacement for passwords that rebuilds the security wall protecting standard account logins. Proximityin the form of the device that stores your passkeysis a powerful tool in reducing account hijacking and interception. Passkeys may seem scary and revolutionary, but theyre actually safer and, in some ways, a bit old-fashioned: theyre a bit of a throwback to a time when having access to a terminal provided proof you were authorized to use it.

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Why Passkeys Will Be Simpler and More Secure Than Passwords - TidBITS

BLS signatures on BitcoinPairing-based cryptography: Part 2 – CoinGeek

This post was first published onMedium.

Boneh-Lynn-Shacham(BLS) is a signature scheme based onbilinear pairings.

Compared toECDSAorSchnorrsignatures, it enjoys several salient advantages:

Due to its minimal storage and bandwidth requirements, it has been adopted by multiple blockchains such as Ethereum, Dfinity, Algorand, and Chia. We illustrate how to implement it on Bitcoin natively.

BLS Signatures: the Theory

Hash to Curve: H(m)

In ECDSA, a messagemis hashed into a number. In BLS, we hash it to a point on the elliptic curve.

One naive way is to hash the message and multiply the result with the generator pointGto get a curve point. However, it isinsecure.

To do this securely, we first hash the message using SHA-256 and treat the 256 bit result as the x-coordinate of a point. If no such point exists on the curve, we increment the x-coordinate and try again, till we find the first valid point.

Sign

Signing is trivial. We simply multiply:

pkis the private key andmis the message. Note no random number is needed.Sis just a curve point and can becompressedto 33 bytes, about half the size of an ECDSA signature.

Verify

To verify a signature, we simply compare two pairings:

To see why the verification works,

Bilinear pairingeallows us to move scalarpkfrom the first input to the second.

Implementation on Bitcoin

We have implemented BLS signature verification usingthe pairing library.

Note we let users passy-coordinate directly and verify it, to avoid computing modular square root.

Summary

We have only demonstrated how to verify a single BLS signature on Bitcoin. BLSs main power lies inaggregated signatures and keys. We leave their implementations on Bitcoin as exercises to readers.

***

NOTES:

[1] This approach is called Hash and Pray, which runs in non-constant time. Constant time approach exists, such asFouque and Tibouchi, but are harder to implement.

[2] We assume a curve point with the x-coordinate exists for ease of exposition here. A hash and pray approach can be easily added.

New to Bitcoin? Check out CoinGeeksBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.

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BLS signatures on BitcoinPairing-based cryptography: Part 2 - CoinGeek

What’s In a Crypto Wallet?: Understanding the Role of Cryptos Essential Tool – Grit Daily

Cryptocurrency is known for not being a beginner-friendly technology, requiring new users to learn a lot of concepts and tools. While this is not surprising due to its highly technical nature, users tend to fall for cognitive biases as they progress through their crypto journey. While not necessarily the case for everybody, it is not uncommon to see clear representations of the Dunning-Kruger effect in so-called veterans.

Probably the greatest example of crypto users overestimating their own knowledge is their understanding of crypto wallets. While Crypto wallets are probably the most important tool when it comes to interacting with crypto and blockchain, most people misunderstand them. Starting with the idea that crypto wallets store cryptocurrency, these misunderstandings can prove disastrous in the long term.

There is also a group of crypto enthusiasts that understand that cryptocurrency wallets dont store crypto but the keys to interact with it. Private and public keys serve different purposes, allowing a range of actions from receiving cryptocurrency to authorizing transactions. To truly understand how these keys allow for such operations, a user would need to have an understanding of cryptography and basic blockchain infrastructure

The understanding of how crypto wallets work gets even more difficult as concepts like custodial, non-custodial, asymmetric cryptography, digital signature, hot/cold wallets, and multisig get thrown around. While it is true that understanding such concepts is not necessary to make use of a cryptocurrency wallet, misunderstanding them must be avoided at all costs. As such, making crypto wallets easy to use without the need to understand the technology is essential.

Making such a wallet might not sound that difficult but in truth, it can be especially complex given the decentralized nature of crypto. Decentralization comes with more freedom of choice at the cost of safeguards, putting developers in a tough spot. With new movements like web3, NFTs, and GameFi gaining momentum, the importance of these decisions continues to increase.

Dilemmas like these are what Robin Guyard, CTO of Laguna; Blake Commagere, Co-founder and COO of Vault12; and Doug Horn, Chief Architect of Telos, sat to discuss during Grit Daily House at Consensus 2022. Rachel Wolfson, Enterprise Blockchain Analyst at CoinTelegraph, moderated the panel titled Whats In a Crypto Wallet? by asking insightful questions on the role wallets are to play in the future of the crypto space.

If you missed the chance to attend Grit Daily House in person and to hear what these experts had to say about this topic, worry not. Not only will you be able to watch the panel in the video below but you can also find other panels on Grit Dailys official YouTube Channel.

Juan Fajardo is a News Desk Editor at Grit Daily. He is a software developer, tech and blockchain enthusiast, and writer, areas in which he has contributed to several projects. A jack of all trades, he was born in Bogota, Colombia but currently lives in Argentina after having traveled extensively. Always with a new interest in mind and a passion for entrepreneurship, Juan is a news desk editor at Grit Daily where it covers everything related to the startup world.

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What's In a Crypto Wallet?: Understanding the Role of Cryptos Essential Tool - Grit Daily