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Zero-Knowledge Proofs
Blockchain Technology Cryptomining News Cyber Security Online Security Zero-Knowledge Proofs

Unveiling the Power of Zero-Knowledge Proofs in Blockchain Technology

In the dynamic realm of blockchain technology, a groundbreaking innovation is emerging as a beacon of privacy and security: Zero-Knowledge Proofs (ZKPs). These cryptographic marvels are poised to redefine the landscape of blockchain transactions, offering unparalleled privacy and integrity. Let's delve into the intricate world of ZKPs and explore their transformative potential within the blockchain ecosystem. 

Let’s Understand What is ZKPs Zero-knowledge Proofs 

(ZKPs) stand as a cornerstone of modern cryptography, enabling individuals to assert knowledge of specific data without disclosing the data itself. Their utility extends across various domains, particularly in scenarios where data confidentiality is paramount. 

Privacy on Blockchains: While blockchains offer transparency, preserving privacy is often crucial, especially when dealing with sensitive financial or personal information within smart contracts. To safeguard this data, smart contracts typically require specific inputs before execution. 

Prover and Verifier: In Zero-Knowledge Proofs (ZKPs), one party (the prover) demonstrates cryptographically to another party (the verifier) that they possess accurate knowledge of hidden data. The data remains undisclosed, known only to the prover with a high level of certainty. 

Maintaining Privacy: ZKPs emerge as a key method for ensuring privacy on public blockchains. They enable the prover to prove knowledge without revealing the actual data, crucial for preserving confidentiality in transactions. 

Enhanced Security: Beyond privacy, ZKPs also bolster security. With 66% of organizations experiencing cyber attacks in the past year, such technology becomes increasingly vital for safeguarding sensitive information. 

Understand With This Example: 
Imagine your friend, Chani, claims she knows the password to your favorite online game but does not want to reveal it. Instead, she aims to prove her knowledge without disclosing the password itself. Enter Zero-Knowledge Proofs (ZKPs). 

In this scenario, Chani serves as the prover, while you are the verifier. Chani seeks to demonstrate her knowledge of the password without giving it away. Using a Zero-Knowledge Proof, Chani can achieve this by engaging in a series of interactions with you that showcase her knowledge without directly revealing the password. 

For example, Chani might ask you to input any word as a password and then perform a sequence of actions that only someone aware of the actual password could execute correctly. Perhaps she requests you to enter the password into a login screen multiple times, each time making slight modifications to the input to prove her familiarity with the correct password. After witnessing several successful attempts, you become convinced of Chani's knowledge of the password, even though she never explicitly discloses it. 

In this manner, Chani effectively proves her knowledge without divulging any additional information beyond the fact that she knows the password. This straightforward illustration underscores the efficacy of Zero-Knowledge Proofs in real-life scenarios, enabling individuals to demonstrate possession of specific knowledge without exposing the knowledge itself. Such a concept finds broad applicability across various domains, including cryptography, cybersecurity, and everyday interactions where privacy and security are paramount. 

Understand How ZKP Works? 

Advanced Verification: This is like a security guard checking if someone trying to enter a restricted area knows the secret moves or actions. If someone tries to fake it, the security system detects the trickery. 

Interactive ZKP: This is when the prover has to go through the secret handshake process separately with each verifier every time they want to prove their knowledge. 

Non-Interactive ZKP: Here, the prover creates a special proof that anyone else who knows the secret handshake can easily check without having to interact directly with the prover. It is like having a stamp of approval that others can use to verify your knowledge. 

Zero-Knowledge Proofs (ZKPs) Come in Different Types, Each With its Own Strengths: 

PLONK: This ZKP is highly versatile and can handle various tasks involving many people. It is like a Swiss Army knife of ZKPs, ready for any challenge. 

ZK-SNARKS: These proofs are fast and easy to verify. They are like simple puzzles that you can quickly solve once you have the right pieces. Using smart math tricks, they keep things running smoothly. 

ZK-STARKS: These proofs are lightning-fast. They do not need much chatting back and forth between the prover and verifier, so they speed through the process. 

Bulletproofs: These ZKPs are short and to the point. They do not require any special setup, making them perfect for keeping cryptocurrency transactions private without relying on trust. 

Zero-Knowledge Proofs (ZKPs) are rapidly becoming a standard in various fields, offering solutions to pressing challenges. They enable private transactions, as seen in cryptocurrencies like Zcash, ensuring anonymity for users. Additionally, ZKPs contribute to decentralized identity systems, safeguarding personal information while allowing for verification. Furthermore, they facilitate verifiable computations in decentralized networks, enhancing the trustworthiness of smart contracts accessing off-chain data. With their versatility and security features, ZKPs are poised to continue revolutionizing cybersecurity, Web3 projects, and beyond, shaping the future of digital transactions and identity management. 
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Web3 startups
2024 revival Blockchain Technology decentralized databases funding trends regulatory landscape tech investments Technology Web3 Web3 startups

Exploring the Potential Revival of Web3 in 2024

 

Web3 startups have been grappling with a significant drop in funding, with second-quarter figures in 2023 showing a staggering 76% decline compared to the previous year, according to Crunchbase. Despite raising a modest $4 billion in the first half of 2023, a sharp contrast to the nearly $16 billion raised in the same period in 2022, the overall trend pointed to a challenging fundraising landscape for these companies.

The downturn can be attributed to various factors, including a lack of investor confidence following market setbacks such as the FTX fiasco and the Three Arrows and Luna debacles. Regulatory actions against major players in the field have heightened concerns about regulatory risks. Additionally, a decline in active developers, users, and overall transaction volume on exchanges further contributed to the downturn.

However, beneath the surface of this market turbulence lies the untapped potential of decentralized databases within the Web3 framework. As governments worldwide implement new data regulatory regimes, the ability of Web3 to empower users to manage their own data becomes increasingly crucial.

Contrary to the boom-and-bust narrative, Web3's architecture offers a unique solution to the challenges posed by evolving data regulations. Instead of companies managing user data, Web3 allows users to control their data, providing software products access only with explicit permission.

Web3 startups face a crucial juncture in their evolution, necessitating a shift in their approach to marketing and selling. Unlike the seamless transition from Web 1.0 to Web 2.0 observed in the mid-2010s, Web3 startups must adapt to survive in a market where fewer than 60 companies generated over $5 million in revenues on chain in 2022.

To thrive, these startups need to expand their buyer base to untapped markets, particularly within the cloud software and infrastructure sector, which constitutes a significant portion of the $1.5 trillion global IT spend. A key aspect of this expansion involves adopting more recognizable language, simplifying terms such as "wallets, blockchains, and tokens" to "accounts, databases, and credits."

Promoting the value proposition and focusing on delivering greater revenue growth at lower costs will be essential for Web3 startups. Embracing the advantages of decentralization, such as improved performance, enhanced security, and compliance guarantees, can help bridge the gap between Web 2.0 and Web3 technologies.

For instance, blockchain technologies can address the growing complexities of data privacy laws by combining the benefits of personalization with crypto-based privacy. Encrypting preferences on the public blockchain allows users to manage their data, satisfying international regulations while enabling publishers to customize sites with user consent.

As the industry navigates this transformative period, startups must focus on practical applications that combine the strengths of Web 2.0 and Web3 to meet the growing demands for privacy and personalization. For investors like Theory, the convergence of Web 2.0 and Web3 software signals a promising future, as Web3 companies strategically embrace lessons from the past to shape their future endeavors.
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Threat Intelligence
AI-Blockchain Blockchain Technology Data Safety Technology Threat Intelligence

Integrating the Power of AI and Blockchain for Data Security and Transparency

 

In an ever-changing digital landscape, providing strong data security and transparency has become critical. This article explores the dynamic interaction of two transformational technologies: artificial intelligence (AI) and blockchain. 

AI improves data security

Artificial intelligence (AI) is critical for enhancing data security via advanced technology and proactive techniques. Machine learning techniques offer real-time threat detection by recognising patterns and abnormalities that indicate potential security breaches. Predictive analytics assesses and anticipates threats, enabling proactive intervention. Furthermore, AI-driven anomaly detection improves the ability to quickly identify and respond to emerging security concerns. 

Blockchain, a transformational force, enables unparalleled data transparency. Its decentralised and irreversible ledger structure means that once data is recorded, it cannot be changed or tampered with, instilling trust in information integrity. Smart contracts, a critical component of blockchain technology, automate and transparently implement established rules, hence improving overall data governance. Blockchain provides a safe and transparent framework, making it an effective solution for industries looking to establish trust, traceability, and accountability inside their data ecosystems.

Synergies in AI and blockchain

The synergies between AI and Blockchain form a potent combination, tackling an array of data security and transparency concerns. AI's analytical capabilities strengthen blockchain functionality by allowing for advanced data analytics on a decentralised ledger. AI-powered algorithms help to detect trends, anomalies, and potential security threats within the blockchain network, hence strengthening overall security measures. Furthermore, AI-driven verification methods improve the accuracy and dependability of blockchain-stored data, increasing trustworthiness and transparency of information. This collaborative integration enables a more resilient and efficient approach to overseeing and safeguarding data in the digital era. 

Managing the integration of AI with Blockchain poses a number of issues and considerations. Ethical issues arise as AI algorithms make decisions, requiring evaluation to mitigate biases and ensure equality. Scalability concerns exist in blockchain networks, mandating solutions for increased transaction volume. Regulatory issues and compliance standards pose challenges, requiring a balance between innovation and adherence to legal frameworks.

The prospects for using blockchain technology and artificial intelligence (AI) to improve data security and transparency seem promising. As technology advances, it will probably enhance the complementary effects of these two revolutionary forces, increasing the limits of what is possible.

Challenges with integration 

Blockchain and AI integration is not without obstacles, though. As AI systems make decisions, ethical issues surface, requiring constant oversight to avoid prejudices and ensure fairness. Blockchain networks continue to face scalability issues, requiring solutions for increasing transaction volumes. Another level of complexity is added by regulatory compliance, which necessitates a careful balancing act between innovation and legal framework compliance. 

The future of AI and Blockchain in terms of data security and transparency is bright, notwithstanding these obstacles. It is likely that constant development will enhance the synergy between these revolutionary technologies, expanding the limits of what is feasible.
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NKN protocol
Blockchain Technology Cyber Security Cybersecurity DDOS Attacks multi-platform threat NKAbuse NKN protocol

NKAbuse Malware Utilizes NKN Blockchain Technology for Executing DDoS Attacks

 

A newly identified multi-platform threat named NKAbuse has surfaced, employing a decentralized peer-to-peer network connectivity protocol known as NKN (New Kind of Network) for communication. Russian cybersecurity firm Kaspersky detailed the malware's capabilities in a report, describing it as a robust implant with both flooder and backdoor functionalities.

NKN, boasting over 62,000 nodes, functions as a software overlay network on the existing Internet, allowing users to share unused bandwidth and earn token rewards through a blockchain layer on top of the TCP/IP stack. NKAbuse, however, takes advantage of this technology to execute distributed denial-of-service (DDoS) attacks and operate as an implant within compromised systems.

While threat actors commonly exploit emerging communication protocols for command-and-control purposes to elude detection, NKAbuse stands out by leveraging blockchain technology. This malicious software communicates with the bot master using the NKN protocol, implementing the Go programming language. Its primary targets seem to be Linux systems, including IoT devices, particularly in Colombia, Mexico, and Vietnam.

The scale of the attacks remains uncertain, but Kaspersky highlighted an incident involving the exploitation of a six-year-old critical security flaw in Apache Struts (CVE-2017-5638, CVSS score: 10.0) to breach an unnamed financial company. The attack sequence involves the delivery of an initial shell script, responsible for downloading the implant from a remote server after verifying the target host's operating system. The server hosting the malware supports various CPU architectures, featuring eight different versions of NKAbuse.

Notably, NKAbuse lacks a self-propagation mechanism, requiring delivery through an initial access pathway, such as exploiting security flaws. The malware employs cron jobs to persist through reboots, checking the user ID and, if it is root (ID 0), adding itself to the crontab for every reboot.

The malware also incorporates backdoor features enabling it to send periodic heartbeat messages to the bot master, providing system information, capturing screenshots, performing file operations, and executing system commands. Kaspersky emphasizes that NKAbuse is crafted for integration into a botnet but can adapt to functioning as a backdoor on a specific host. The use of blockchain technology ensures reliability and anonymity, hinting at the potential for the botnet to expand steadily over time without an identifiable central controller.

Zheng "Bruce" Li, co-founder of NKN, expressed surprise at the misuse of NKN technology, emphasizing that NKN was designed to offer secure, private, decentralized, and scalable peer-to-peer communication. He expressed a willingness to collaborate with security experts to enhance internet safety.
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Technology
Blockchain Technology Data Theft New Technology Passport System Technology

Learn How Blockchain Technology Will Revolutionize Passport System in the World

 
In this era of advanced technology, passports are undergoing a significant transformation. The integration of blockchain technology into passport systems represents a major upgrade. This innovation can potentially enhance safety and efficiency, benefiting travelers and governmental authorities alike. It promises a more secure and seamless travel experience for everyone involved. 

In the conventional passport system, three major challenges demand immediate attention for a more effective approach to identity verification and travel documentation. 

Security Vulnerabilities: Traditional passports, relying on centralized databases and physical stamps, are susceptible to counterfeiting and fraudulent activities. Exploitation of these vulnerabilities by criminal elements can compromise the integrity of the passport system, posing a significant threat to global security. 

Cumbersome Verification Processes: Verifying traditional passports often entails manual checks and intricate bureaucratic procedures. This results in prolonged waiting times at border crossings and airport checkpoints, causing inconvenience to travelers and placing strain on border control resources. 

Privacy Concerns: The centralized storage of sensitive personal information in traditional passports gives rise to legitimate privacy concerns. Individuals may be uneasy about their data being concentrated in a single centralized authority, increasing the risk of unauthorized access or misuse. 

Addressing these challenges is crucial for advancing the reliability and efficiency of identity verification and travel documentation processes. However, blockchain technology could be a cornerstone in fortifying the security of passport systems for several reasons: 

Advanced Security Measures: Through its decentralized and unalterable ledger, blockchain provides an unprecedented level of security. Once information is logged, it is impervious to any form of tampering or modification, creating a robust defense against fraudulent activities. 

Perpetual Data Integrity: Data stored on a blockchain is everlasting and remains impervious to modification. This guarantees the trustworthiness and reliability of passport information, effectively minimizing the risks associated with identity theft or forgery. 

Distributed Architecture: In contrast to conventional centralized databases, which are susceptible to cyberattacks, blockchain operates on a decentralized network. This disperses data across multiple computers, significantly lowering the likelihood of a single point of failure. 

Enhanced Operational Efficiency: Blockchain technology has the potential to optimize the verification process, leading to reductions in both time and resources expended on manual checks. This can result in more streamlined and expeditious procedures at border crossings and airports. 

Empowered Privacy Management: Blockchain can be configured to grant individuals greater control over their personal data. They have the authority to dictate which information is shared and with whom, mitigating the risks of unauthorized access. 

Facilitated Interagency Communication: Blockchain can enable seamless communication among diverse government bodies and international entities. This can result in heightened coordination in realms such as immigration, border control, and security. 

Immutable Documentation: Once a passport is issued and its details are logged on the blockchain, it becomes an impervious document. This ensures the unyielding integrity and permanence of the data throughout the passport's validity period. 

Using blockchain technology, run and shared only by governments, could be a revolutionary step for everyone. It will make things cheaper, and faster, and push us forward into the next era.
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Worldcoin
Blockchain Technology cryptocurrency Kenya Government Technology Worldcoin

Worldcoin Suspended in Kenya as Thousands Queue For Free Money

 

Kenya's government recently issued an order to cryptocurrency initiative Worldcoin, directing them to halt the registration of fresh users due to concerns regarding data privacy. During this week, a significant number of Kenyan citizens have been lining up at registration centers to obtain the cryptocurrency, valued at approximately $49 (£39). 

However, the Kenyan government has issued a cautionary notice, urging people to exercise caution when sharing their personal data with private companies. The Communications Authority of Kenya has expressed specific concerns regarding the cryptocurrency project. 

Their apprehensions include the manner in which biometric data is being stored, the practice of offering money in return for data, and the potential risk associated with entrusting vast amounts of data to a private company. 

The Ministry of the Interior in Kenya has initiated an official investigation into the operations of Worldcoin and has called upon security services and data protection agencies to verify its authenticity and legality. 

Worldcoin responded to the situation through a statement released on Thursday, announcing its plans to implement crowd-control measures and collaborate with the government before resuming its activities. The organization assured that it is committed to adhering to Kenyan regulations. 

Meanwhile, in the capital city, Nairobi, at one of the pop-up registration centers, hundreds of individuals were left unable to proceed with the registration process on Wednesday. The authorities deemed the large crowd as a "security risk," leading to the temporary suspension of the registration activities. 

"I've been coming here almost three days to line up and register. I want to register because I'm jobless and I'm broke, that's why I'm here, I came here yesterday. I waited until my phone died. So I came again today but I missed the registration again. I really like Worldcoin because of the money. I'm not worried about the data being taken. As long as the money comes," Webster Musa said. 

According to a statement given to BBC, Worldcoin selected Kenya as its initial African launch destination due to the country's thriving tech industry and the presence of over four million Kenyans actively engaged in cryptocurrency trading. The company saw the nation as an opportune location to introduce its platform to the African market.
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Worldcoin
Blockchain Technology cryptocurrency Data protection OpenAI Privacy Worldcoin

Worldcoin Crypto Project Already Under Radar in Europe



This week, Worldcoin is set to start its official global rollout but is already facing a setback from the European data protection authorities. 

Worldcoin is OpenAI CEO Sam Altman's attempt to corner the market for humanness verification by persuading enough mobile users to have their eyes scanned in exchange for cryptocurrency tokens.

Why Does Anyone Need to Prove Their Humanness? 

One reason is the advancement in Altman's generative AI technology is making it more difficult to discern between bot-generated and human digital behavior. But don’t worry, he’s got an eyeball-scanning orb-plus-crypto-token to sell humanity on for that.

Now, any willing individual can acquire Worldcoin's “digital token” by selling their biometric data. This situation is rising in four European markets: The U.K., France, Germany, and Spain. This has further raised concerns of privacy regulators who are all set to investigate Worldcoin on what they are doing to their personal data.

In regards to this, the UK Information Commission Office has released a public statement, stating it will be making inquiries about the Worldcoin launch held earlier this week. “Organisations must conduct a Data Protection Impact Assessment (DPIA) before starting any processing that is likely to result in high risks, such as processing special category biometric data. Where they identify high risks that they cannot mitigate, they must consult the ICO,” they added.

In a further remark, the French administrative regulatory body for ensuring data privacy law, CNIL reviewed the issue. In its initial investigation, CNIL  declared that it has selected its Bavarian counterpart as the leading organization in Europe to look into Worldcoin and that it supports their inquiry. However, Bavaria's data protection agency had no immediate response when contacted by AFP on Friday.

According to its website, Worldcoin intends to establish the "world's largest identity and financial public network" with its cryptocurrency and identification system.

Earlier this week, countering the allegations, Altman and co-founder Blania noted on Twitter that Worldcoin offers a "reliable solution for distinguishing humans from AI online while preserving privacy."

They added that Worldcoin, as a blockchain-based technology will help in improving economic opportunities and democratic processes.

While the most well-known blockchain, which powers the cryptocurrency Bitcoin, is infamous for being slow and expensive due to the requirement of enormous computer processing power to validate transactions as part of its system to reward processors with new bitcoins, Worldcoin can offer lower costs and faster data transfer while ensuring secure transactions.  

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Threat Landscape
Blockchain Blockchain Technology Cyber Security Smart Contracts Threat Landscape

Understanding the Drawbacks of Blockchain Smart Contracts

 

Blockchain technology has grabbed the attention of companies across the globe. Due to its benefits, such as immutability and transparency, traditional companies outside of banking, like BMW and Bosch, have begun to experiment with smart contracts to produce more efficient supply chains and better engineering products.

A number of parties' agreements can be formalised and carried out using smart contracts, which are simply software codes included into a particular blockchain. This eliminates the need for a third party middleman, saves time, and enables multi-party consensus-based validation. They can be applied to many other tasks, including transferring deeds, playing chess, and creating wills.

But despite the disruptive potential and highly praised abilities blockchain promises, the number of heists targeting smart contracts has increased more than 12-fold over the past two years. Why are there so many more heists now if they are so intelligent?

Let's define the connection between smart contracts and blockchain for better comprehension. 

Decentralisation 

Consider each smart contract in a blockchain network similar to Amazon's AWS platform as a server. Blockchain makes it more difficult for attackers to employ conventional hacking techniques like Trojan horses, physical attacks, and ransomware because there isn't a single centralised site for them to exploit. By removing the single point of failure in a network, blockchain combats these. 

While it's not technically possible to hack a blockchain network, many distributed applications and smart contracts that blockchain enables can. 

Large sums of value are being funnelled through smart contracts as a result of the progressively expanding success and influence of decentralised finance (DeFi), making them tempting to hackers. And as the number of tokenized real-world assets increases, this threat is expected to grow. Because funds stolen via smart contracts are extremely difficult to recover, hacking poses a severe threat to this emerging blockchain sector. 

Smart contract threats

Smart contracts, like all code, are susceptible to human mistake. These faults can be typos, misrepresentations of specifications, or more serious mistakes that can be utilised to hack or "trick" the smart contract. There is no guarantee that the contracts have been peer-reviewed or validated, as opposed to blockchain. 

A smart contract audit may be able to spot errors in the coding, but other dangers are more difficult to detect. For instance, the default-visibility vulnerability is a typical error that happens when the visibility of functions is not specified and some functions are left public. For instance, hackers may gain access to the mint feature and produce billions of relevant tokens. Fortunately, by conducting an audit to make sure that all functions are set to private by default, this vulnerability may be avoided. 

Reentrancy attacks pose different, more complex and dangerous threats as a result of coding flaws. This occurs when an attacker deploys a malicious smart contract to communicate with the one holding the funds through the external function calls of the smart contract.

Mitigation tips

Not to mention that most smart contract administrators grant themselves certain admin capabilities, usually to make post-launch updates. Administrators must utilise their private keys to gain access to these rights. These private keys are yet another risk, and if they are not properly stored (i.e., in an offline cold vault), hackers who acquire access can alter the smart contract and send funds anywhere they want. 

Recently, the European Parliament mandated that a kill switch mechanism be used to mitigate damage in the event that a smart contract is hacked. While the authorities intended to provide users greater control over their personal data, the act has raised worries among the Web3 community. 

A kill switch might obliterate the entire smart contract and any value that was put on it if it were not done properly. A pause function that, in the event of a security threat, could freeze the smart contract and restart it after the problem is fixed would be a superior solution.

If the pause feature is used, the administrator is recommended to use two different private keys. Because as soon as the contract's private key (used to pause it) is live, it opens itself up to assault. Separating the pause and unpause admin keys and keeping them offline increases the security of the smart contract by removing potential weak points. 

The DeFi and blockchain ecosystems are subject to security risks, as are all technological platforms. As we've seen with the advent of DeFi platforms and protocols, smart contracts provide advantages, but these advantages can be mitigated by being aware of their weaknesses, conducting thorough research, and adhering to the recommendations in this article. With time, improved security standards will emerge, strengthening the use cases for smart contracts and bringing forth a more stable blockchain environment.
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Technology
Blockchain Technology Crypto Hacking Data Privacy Financial Exploit North Korea Hackers Online Safety Technology

How Blockchain Technology is Playing a Major Role in Combating Crypto Hacking Risk

 

The world of cryptocurrencies is not immune to the shadows that come with living in a time when digital currencies are having such a significant impact on the global financial landscape. 

Malicious actors are devising complex plans to take advantage of this expanding market while remaining unseen and hidden in the shadows of the internet. Even if the situation involving the most recent Euler Finance exploit and the Ronin Network hack last year was frightening, it is not an isolated incident. 

The finding of a potential link between these instances has caused concern among those in the cryptocurrency community regarding the security and traceability of digital assets. 

The Ronin Bridge exploiter, who is thought to be connected to the notorious North Korean hacker group Lazarus Group, received 100 Ether, or $170,515, via a wallet address connected to the Euler Finance exploit. These occurrences serve as a sharp reminder of the cyberthreats that exist within the crypto sector and may jeopardise its integrity and safety. 

However, this cloud does have a silver lining. The discovery of these links further demonstrates the effectiveness of blockchain technology in locating and perhaps even reducing these concerns. As we continue reading this article, we'll examine the intricacies of cryptocurrency hacking and talk about how to effectively counter such malicious threats. 

How does crypto hacking work?

Crypto hacking, in its most basic form, is the unauthoritative access to and theft of digital assets kept in cryptocurrency wallets and exchanges. It is a type of cybercrime that targets the blockchain ecosystem specifically and takes advantage of flaws in hardware, software, or user behaviour to gain cryptocurrencies in an unauthorised manner. 

Crypto hackers use a variety of strategies. One of the most typical is phishing, where a hacker impersonates a reliable entity to deceive people into disclosing sensitive information like private keys or login passwords. The use of malware or ransomware, which infiltrates networks and either directly steals cryptoassets or holds them for ransom, is a further popular tactic. However, these aren't the only techniques available for crypto cracking. Since hot wallets on crypto exchanges are more prone to attack than cold wallets, hackers target them. 

This includes the current scandals surrounding the Ronin Network and Euler Finance. They depict what are referred to be DeFi exploits. DeFi platforms, like Euler Finance, run on smart contracts, which are self-executing contracts with the conditions of the agreement put directly into code. These smart contracts have numerous benefits, such as transparency and a reduction in the need for middlemen, but they may also have flaws or other weaknesses that cunning hackers might take advantage of. 

Rise in crypto crimes

In 2022, Chainalysis recorded bitcoin thefts of $3.8 billion, a startling increase from the $0.5 billion taken in 2020 and a 15% increase over the $3.3 billion reported in 2021. The increase in online holdings brought about by the rise in public use of digital currencies has made them more desirable and reachable targets for cybercriminals.

De-Fi protocols, essential pieces of technology that support major cryptocurrency exchanges and organisations, were identified by Chainalysis as the key target of assaults in both 2023 and 2022. De-Fi protocols accounted for 82% of all hacking instances in 2022, an increase from 73% in the previous year. 

North Korea continues to lead the pack in terms of dedication to bitcoin hacking. Chainalysis estimates that NK-connected cybercrime groups, such the Lazarus Group, stole $1.7 billion in 2022, making up about half of the annual global total. In 2022, NK stole more digital currency than ever before, according to a recent United Nations report on cyberattacks, albeit the value of the stolen assets vary. 

According to The Conversation, North Korea uses the stolen cryptocurrency to fund its sanctioned nuclear programme, indicating that its hacking activities are unlikely to slow down anytime soon. Compared to prior years, 2022 will see a significant increase in hacking activity, according to Chainalysis' year-over-year research. 

Prevention tips 

The increase in crypto hacking events and the daring actions of organisations like the Lazarus Group highlight the pressing need for strong deterrents. A multifaceted strategy combining technological, legal, and instructional tactics is necessary to tackle these dangers.

Technology-based barriers: The first line of defence against advanced persistent threats is strong cybersecurity measures. This entails the deployment of firewalls, secure, up-to-date software, and robust encryption for all data transmissions. MFA, or multi-factor authentication, can offer an additional layer of security to prevent unauthorised access. 

Regular smart contract audits by outside security companies can aid in identifying and fixing vulnerabilities in the DeFi space before they are exploited. Additionally, the usage of bug bounty programmes, in which ethical hackers are compensated for identifying and disclosing software vulnerabilities, might be an efficient tactic to foreseeably discover possible security weaknesses.

Legal obstacles: Another important component of stopping crypto hacking is using legal disincentives. This entails the creation and application of stringent legislation and rules to deter online criminal activity. The decentralised and international character of cryptocurrencies, however, can make enforcing laws more difficult. Despite these difficulties, there have been cases where hackers have been caught and charged, including the notorious Silk Road case, illustrating the effectiveness of legal deterrents. Blockchain forensics and international cooperation between law enforcement organisations can be crucial in locating and prosecuting these fraudsters. 

Educational barriers: Education is also a potent deterrent. In cybersecurity, the human element is frequently the weakest link since people are readily duped into disclosing private information or acting riskily. Therefore, educating people on how to protect their digital assets, spreading awareness of safe online conduct, and encouraging these behaviours are essential steps in preventing crypto hacking. 

Cybercrime is still a significant concern as we negotiate the complicated world of cryptocurrency. Axie Infinity's Ronin Network and the hacker group Lazarus' suspected involvement in such breaches serve as a sobering warning of the vulnerability of digital assets. Although law enforcement authorities and cybersecurity companies are stepping up their efforts to prevent and track down these hackers, the reality is that due to the anonymity and decentralised nature of cryptocurrencies, these efforts are made more difficult. 

Though it is still in its infancy, insurance is beginning to show promise as a way to reduce the risk of loss from cybercrimes. Crypto insurance may provide some amount of defence against losses brought on by theft, hacking, and other cybersecurity breaches. However, it is a challenging task due to the volatile nature of crypto assets and the absence of comprehensive rules.

In the end, protecting digital assets depends on personal watchfulness, technological breakthroughs, legal frameworks, and international cooperation. The necessity for effective legal deterrents and strong cybersecurity safeguards will only become more pressing as we continue to learn more about cryptocurrency. In this fast-changing environment, the development of crypto insurance and other preventive measures will surely play a crucial role.
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Technology
Blockchain Technology Credential Reuse Data Privacy Digital Infrastructure Online Safety Technology

Deloitte Launches Blockchain Integration for Digital Credentials

 

One of the "Big Four" accounting firms, Deloitte, is in the forefront of the adoption of blockchain technology to transform the issue of digital credentials. 

KILT's blockchain technology will be used to create reusable digital credentials for Know Your Customer (KYC) and Know Your Business (KYB) processes, the firms stated in partnership with BOTLabs GmbH, creator of the KILT Protocol. Streamlining verification procedures and enhancing data privacy are the two goals of the creative solution. 

Reusable credentials for transforming verification 

Commonly requiring several data points and paper-based credentials, traditional KYC and KYB processes are repetitious and wasteful. 

Deloitte hopes to address these issues and give clients more control and flexibility over their digital credentials by utilising KILT's identity infrastructure. 

Customers can pick who they share their information with and which data points to divulge by storing their credentials in a wallet on their devices. 

With the help of a browser plugin that serves as a credential wallet created by Deloitte, consumers can easily set up and manage their credentials without any prior blockchain expertise.

Digital credentials anchored on the KILT blockchain, according to Micha Bitterli, Head of Deloitte Managed Services, have the potential to develop new digital marketplaces, ranging from e-commerce and decentralised finance (DeFi) to gaming. 

The credentials are digitally signed by the company, and if a customer's circumstances change after issue, it can revoke them using blockchain technology. 

Verifiable digital credentials built on KILT may be utilised across numerous applications while enabling users to maintain control over their personal information, according to Ingo Rübe, CEO of BOTLabs GmbH and creator of the KILT Protocol.

Growing interest in crypto currency 

Late in April 2023, Deloitte started actively looking for people with bitcoin knowledge to join its team. Over 300 opportunities are open in the US, including titles like Tax Manager for Blockchain & Cryptocurrency and Blockchain & Digital Assets Manager, according to a LinkedIn search. 

Contrasting with its "Big Four" rivals Ernst & Young, KPMG, and PricewaterhouseCoopers, which currently display no results for crypto-related job postings, Deloitte's rising interest in the domain of cryptocurrencies. 

Deloitte's decision to increase the number of employees with a focus on cryptocurrencies shows that it continues to support Web3 and digital assets. In order to offer immersive experiences across diverse industries, Deloitte teamed up with Web3 platform Vatom in February. 

Another illustration of Deloitte's commitment to modernising established procedures and embracing the future of digital asset technology is the incorporation of KILT's blockchain technology for digital credentials.
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Web 3.0
Blockchain Technology Cyber Security Decentralization Web 2.0 Web 3.0

How Web 3.0 is Revolutionizing the Internet: A Technical Comparison with Web 2.0

A visual comparison between Web 2.0 and Web 3.0, with Web 2.0 representing centralized silos of information and Web 3.0 representing decentralized networks built on blockchain technology.

The internet has come a long way since its inception, and it has undergone several changes. The initial version of the internet, known as Web 1.0, was mostly static and one-way, with users only able to consume content. With the advent of Web 2.0, the internet became more interactive, and users could interact with each other and generate content. 

Today, we are on the brink of a new era of the internet, Web 3.0, which promises to be more decentralized, secure, and user-focused than its predecessors. In this blog, we will explore the technical differences between Web 2.0 and Web 3.0.

Decentralization

One of the primary differences between Web 2.0 and Web 3.0 is decentralization. Web 2.0 is centralized, with a few companies controlling most of the internet's content and services. In contrast, Web 3.0 is decentralized, with no single entity in control. The blockchain technology powering Web 3.0 allows for distributed ledger systems, enabling decentralized applications (dApps) and services.

Interoperability

Web 2.0 applications are isolated and siloed, meaning that data and functionality are limited to a specific platform or service. Web 3.0 applications, on the other hand, are designed to be interoperable, allowing data and functionality to be shared across different platforms and services.

Privacy and Security

Web 2.0 is known for its weak security and privacy measures. Users are required to provide their personal information to use most Web 2.0 services, and their data is often stored on centralized servers, making it susceptible to hacks and breaches. In contrast, Web 3.0 offers enhanced security and privacy through the use of encryption and decentralized storage. Users control their data and can choose to share it only with trusted parties.

Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They allow for automated transactions and eliminate the need for intermediaries, making processes more efficient and cost-effective. Web 3.0 is built on the blockchain, which enables smart contract functionality, creating a decentralized ecosystem where trust is built into the code.

Tokenization

Web 3.0 enables the creation and use of digital assets known as tokens. Tokens can represent anything of value, including currency, property, or even loyalty points. The use of tokens enables new business models and revenue streams, and they can be exchanged and traded on decentralized exchanges.

User Control

Web 3.0 is designed to put users in control of their data and online identity. Users can own their data and choose to share it selectively, and they can create and control their online identities. This user-centric approach is a significant departure from Web 2.0, where companies collect and monetize user data without much regard for user privacy and control.

Artificial Intelligence

Web 3.0 is expected to incorporate artificial intelligence (AI) and machine learning (ML) technologies, creating intelligent applications and services. AI and ML can be used to personalize experiences and automate processes, improving efficiency and user satisfaction.

Looking Ahead: The Future of Web 3.0

The shift from Web 2.0 to Web 3.0 represents a significant transformation in the internet's architecture, enabling decentralized, secure, and user-focused applications and services. The adoption of blockchain technology, smart contracts, and tokenization has opened up new possibilities for businesses, individuals, and communities. 

Web 3.0 is expected to create a more equitable and inclusive internet, where users have more control over their data and online identities. As this new era of the internet continues to evolve, it is important to stay informed about the latest developments and their potential implications. While Web 3.0 is not without its challenges, the potential benefits make it an exciting prospect for the future of the internet.

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Technology
Blockchain Disruption Blockchain Technology Decentralization and Automation Industry Transformation Technology

How Blockchain Technology Will Impact These Top 5 Industries

Blockchain Technology


Blockchain technology is a digital ledger that is revolutionizing the way we conduct transactions, store data, and manage digital assets. It is a distributed, decentralized system that provides transparency, security, and immutability, making it a perfect fit for various industries. 

Blockchain technology has the potential to disrupt many industries in the future by changing the way we do business, reducing costs, increasing efficiency, and enhancing security. 

In this blog, we will discuss how blockchain technology can effectively disrupt the following industries:

Banking and Finance

The banking and finance industry is the most obvious industry that can benefit from blockchain technology. Blockchain technology can replace the traditional banking system, which is slow, inefficient, and costly. Blockchain technology can provide fast, secure, and low-cost transactions without the need for intermediaries such as banks. 

Blockchain-based cryptocurrencies such as Bitcoin and Ethereum are already disrupting the financial industry by providing decentralized digital currencies that can be used for peer-to-peer transactions. In the future, blockchain technology can replace the entire banking system by providing decentralized lending, insurance, and investment platforms.

Supply Chain Management

Supply chain management is another industry that can benefit from blockchain technology. Supply chain management involves tracking products and goods from the source to the end-user, which can be a complex and costly process. Blockchain technology can provide a transparent and secure system that can track products and goods from the source to the end-user. 

Blockchain-based supply chain management systems can help reduce costs, increase efficiency, and provide transparency, which can help prevent fraud and ensure ethical business practices. Blockchain-based supply chain management systems can also help with food safety by providing a transparent system that can track the source of the food.

Healthcare

The healthcare industry is another industry that can benefit from blockchain technology. Healthcare involves storing and sharing sensitive patient data, which can be a complex and costly process. Blockchain technology can provide a secure and decentralized system that can store and share patient data securely. 

Blockchain-based healthcare systems can help reduce costs, increase efficiency, and provide transparency, which can help prevent fraud and ensure ethical business practices. Blockchain-based healthcare systems can also help with clinical trials by providing a transparent system that can track the progress of clinical trials.

Real Estate

The real estate industry is another industry that can benefit from blockchain technology. Real estate involves buying and selling property, which can be a complex and costly process. Blockchain technology can provide a transparent and secure system that can track property ownership and transfer of property. 

Blockchain-based real estate systems can help reduce costs, increase efficiency, and provide transparency, which can help prevent fraud and ensure ethical business practices. Blockchain-based real estate systems can also help with property title disputes by providing a transparent system that can track the ownership of property.

Voting

The voting industry is another industry that can benefit from blockchain technology. Voting involves a complex and costly process that can be subject to fraud and manipulation. Blockchain technology can provide a transparent and secure system that can ensure fair and secure elections. 

Blockchain-based voting systems can help reduce costs, increase efficiency, and provide transparency, which can help prevent fraud and ensure ethical business practices. Blockchain-based voting systems can also help with voter participation by providing a secure and user-friendly system that can increase voter turnout.

The Future Potential of Blockchain Technology

Blockchain technology is evolving rapidly, and its future potential goes beyond the industries discussed in this article. As the technology matures and gains wider acceptance, we can expect to see innovative use cases that tackle complex challenges and drive progress across different domains.

One promising area of exploration is the integration of blockchain with emerging technologies like AI and IoT. By combining these technologies, we can leverage their strengths to unlock unprecedented levels of automation, security, and efficiency across various applications. For instance, blockchain can enable secure data sharing between IoT devices, and AI can optimize decision-making based on the data collected.

Decentralized autonomous organizations (DAOs) are another exciting prospect that can revolutionize the way businesses and organizations are structured and managed. They are governed by smart contracts on a blockchain, promoting transparency, accountability, and fairness.

Improvements in scalability and interoperability can facilitate the seamless integration of various blockchain platforms, allowing for more efficient data sharing and collaboration between different networks. This can create a truly interconnected and decentralized digital ecosystem, furthering the potential of blockchain technology.




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