DerbyCon 2017 - Hacking Blockchains

This talk covers the fundamentals of blockchain technology, and shows how anyone in the security industry can begin hacking and securing blockchain technology and cryptocurrencies.

Transcript

1. Hacking Blockchains Aaron Hnatiw aaron@securitycompass.com Twitter: @insp3ctre www.securitycompass.com
2. Senior Security Researcher, Security Compass Aaron Hnatiw • College professor of application security • Developer • System administrator • Security consultant • Network security engineer Twitter: @insp3ctre
3. What is this talk about? @insp3ctre
4. Topics 1. Blockchain 2. Cryptocurrencies 3. Other uses 4. Security @insp3ctre
5. What is a blockchain? @insp3ctre
6. Literally a chain of blocks @insp3ctre
7. A distributed ledger @insp3ctre (A high-integrity, irreversible database)
8. Cryptocurrencies @insp3ctre
9. Bitcoin @insp3ctre
10. Bitcoin @insp3ctre http://nakamotoinstitute.org/literature/
11. Requirements of Bitcoin @insp3ctre
12. Requirements of Bitcoin 1. Private @insp3ctre
13. Requirements of Bitcoin 1. Private 2. Anonymous @insp3ctre
14. Requirements of Bitcoin 1. Private 2. Anonymous 3. Censorship-resistent @insp3ctre
15. Requirements of Bitcoin 1. Private 2. Anonymous 3. Censorship-resistent 4. Byzantine attack resilience @insp3ctre
16. Requirements of Bitcoin 1. Private 2. Anonymous 3. Censorship-resistent 4. Byzantine attack resilience 5. Decentralized @insp3ctre
17. How It Works @insp3ctre
18. How It Works 1. Broadcast @insp3ctre
19. How It Works 1. Broadcast 2. Collect @insp3ctre
20. How It Works 1. Broadcast 2. Collect 3. Proof-of-work @insp3ctre
21. How It Works 1. Broadcast 2. Collect 3. Proof-of-work @insp3ctre Hash(prev_block_id, transactions, nonce) <= t?
22. How It Works 1. Broadcast 2. Collect 3. Proof-of-work @insp3ctre Hash(prev_block_id, transactions, nonce) <= t? t = 922724699725.9628
23. How It Works 1. Broadcast 2. Collect 3. Proof-of-work @insp3ctre Hash(prev_block_id, transactions, nonce) <= t? t = 922724699725.9628 Odds of being right: 1/(2^256 - t)
 1/(≈ 0.0012 × the number of atoms in the visible universe)
24. How It Works 1. Broadcast 2. Collect 3. Proof-of-work @insp3ctre Hash(prev_block_id, transactions, nonce) <= t? t = 922724699725.9628 Odds of being right: 1/(2^256 - t)
 1/(≈ 0.0012 × the number of atoms in the visible universe)
25. How It Works 1. Broadcast 2. Collect 3. Proof-of-work 4. Broadcast @insp3ctre Hash(prev_block_id, transactions, nonce) <= t? t = 922724699725.9628 Odds of being right: 1/(2^256 - t)
 1/(≈ 0.0012 × the number of atoms in the visible universe)
26. How It Works 1. Broadcast 2. Collect 3. Proof-of-work 4. Broadcast 5. Acceptable? @insp3ctre
27. How It Works 1. Broadcast 2. Collect 3. Proof-of-work 4. Broadcast 5. Acceptable? 6. Reward @insp3ctre
28. How It Works 1. Broadcast 2. Collect 3. Proof-of-work 4. Broadcast 5. Acceptable? 6. Reward 7. Next block @insp3ctre
29. @insp3ctre https://blockchain.info/ http://www.bitcoinblockhalf.com/
30. Altcoins @insp3ctre
31. Altcoins @insp3ctre
32. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin @insp3ctre
33. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time @insp3ctre
34. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time • litecoin: higher memory to defeat ASICs @insp3ctre
35. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time • litecoin: higher memory to defeat ASICs • peercoin: first proof-of-stake @insp3ctre
36. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time • litecoin: higher memory to defeat ASICs • peercoin: first proof-of-stake • primecoin: proof is finding special primes for science @insp3ctre
37. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time • litecoin: higher memory to defeat ASICs • peercoin: first proof-of-stake • primecoin: proof is finding special primes for science • darkcoin/dash: 11 different hashing algorithms strung together, trying to defeat ASICs @insp3ctre
38. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time • litecoin: higher memory to defeat ASICs • peercoin: first proof-of-stake • primecoin: proof is finding special primes for science • darkcoin/dash: 11 different hashing algorithms strung together, trying to defeat ASICs • monero: transactions are private @insp3ctre
39. Altcoins • “Colored coins”: represent shares or asset; built on Bitcoin • dogecoin: faster block time • litecoin: higher memory to defeat ASICs • peercoin: first proof-of-stake • primecoin: proof is finding special primes for science • darkcoin/dash: 11 different hashing algorithms strung together, trying to defeat ASICs • monero: transactions are private • Zcash: zero-knowledge proofs; completely anonymous, thus very popular with ransomware @insp3ctre
40. Ethereum @insp3ctre Currency and beyond...
41. Currency: Ether @insp3ctre https://www.coinbase.com/charts
42. EVM
 The “world computer” @insp3ctre
43. EVM
 The “world computer” @insp3ctre Smart contracts
44. EVM
 The “world computer” @insp3ctre Smart contracts DAOs
45. EVM
 The “world computer” @insp3ctre Smart contracts DAOs ICOs
46. Other uses @insp3ctre
47. Other uses @insp3ctre
48. Other uses • Voting @insp3ctre
49. Other uses • Voting • Tracking digital assets @insp3ctre
50. Other uses • Voting • Tracking digital assets • Tracking physical goods @insp3ctre
51. Other uses • Voting • Tracking digital assets • Tracking physical goods • Commodities @insp3ctre
52. Other uses • Voting • Tracking digital assets • Tracking physical goods • Commodities • “Pegged sidechains” @insp3ctre
53. Other uses • Voting • Tracking digital assets • Tracking physical goods • Commodities • “Pegged sidechains” • Decentralized file storage @insp3ctre
54. Many more... @insp3ctre
55. Security @insp3ctre
56. Majority ledger @insp3ctre 49% 51%
57. Double spend @insp3ctre https://www.coinprices.io/articles/ghash-io-the-double-spend-threat
58. Private key brute-force
 (collision) @insp3ctre
59. Private key brute-force
 (collision) @insp3ctre 1/1461501637330902918203684832716283019655932542976
60. Wallet correlation @insp3ctre http://xkcd.com/552/
61. Wallet correlation @insp3ctre https://99bitcoins.com/know-more-using-bitcoin-anonymously/
62. Wallet correlation @insp3ctre http://www.bit-cluster.com/ (Mathieu Lavoie & David Décary-Hétu)
63. Smart contracts appsec @insp3ctre
64. Smart contract analysis tools @insp3ctre
65. Smart contract analysis tools @insp3ctre • Porosity
66. Smart contract analysis tools @insp3ctre • Porosity • evmdis
67. Smart contract analysis tools @insp3ctre • Porosity • evmdis • Securify
68. Smart contract analysis tools @insp3ctre • Porosity • evmdis • Securify • Oyente
69. Smart contract analysis tools @insp3ctre • Porosity • evmdis • Securify • Oyente • Dr. Y's Ethereum Contract Analyzer
70. Audit @insp3ctre https://cryptoconsortium.github.io/CCSS/
71. Audit @insp3ctre
72. The usual suspects @insp3ctre
73. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash)
74. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash) • SQLi (Coinwallet; service shut down after)
75. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash) • SQLi (Coinwallet; service shut down after) • Insider threat (Shapeshift.io)
76. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash) • SQLi (Coinwallet; service shut down after) • Insider threat (Shapeshift.io) • Backdoor in dependency code (Cryptsy)
77. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash) • SQLi (Coinwallet; service shut down after) • Insider threat (Shapeshift.io) • Backdoor in dependency code (Cryptsy) • Spearphishing (Bitpay)
78. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash) • SQLi (Coinwallet; service shut down after) • Insider threat (Shapeshift.io) • Backdoor in dependency code (Cryptsy) • Spearphishing (Bitpay) • Wordpress hack, pivot to database access (Allcrypt)
79. The usual suspects @insp3ctre • Hacked website, funding address swapped before ICO (Coindash) • SQLi (Coinwallet; service shut down after) • Insider threat (Shapeshift.io) • Backdoor in dependency code (Cryptsy) • Spearphishing (Bitpay) • Wordpress hack, pivot to database access (Allcrypt) • Web application race condition (Cryptoine)
80. insp3ct.re/blog/blockchain-security-reference-guide/ Aaron Hnatiw aaron@securitycompass.com Twitter: @insp3ctre www.securitycompass.com Get started hacking blockchains!