Cryptocurrency News – Is there a problem with the digital signatures of most of the mainstream …

Cryptocurrencies are thought to be pretty secure. They work on the blockchain which is transparent and encrypted. Recently, however, some of the …
Spread the love

Cryptocurrencies are thought to be pretty secure. They work on the blockchain which is transparent and encrypted. Recently, however, some of the researchers have found a vulnerability. The vulnerability is in the cryptographic signature. The vulnerability is in the digital signatures of the mainstream cryptocurrencies like Bitcoin (BTC), Ripple (XRP) and Ethereum (ETH). According to the vulnerability, the attackers were able to calculate the private keys. Once the private key is revealed, the attackers were able to access the wallet.

Is there a problem with the digital signatures of most of the mainstream cryptocurrencies?

The problem is that once the private keys fell into the hands of the hackers, they were able to steal the cryptocurrencies from the wallet. The attack was not just limited on a few wallets but hundreds of wallets across different cryptocurrencies.

The vulnerability is because the wallet developers have not developed them properly. Some of the problems have even occurred due to faulty signature hardware. The resiliency of cryptography schemes is not as high as it was thought to be. The implementation further created a weak point in the entire system. The vulnerability starts when anyone makes a transaction. The signature for the transaction is calculated with the help of an electric digital signature algorithm. The algorithm comes up with the arbitrary number used during the communication. The number is just used ones.

The problem is that attackers have been able to calculate similar arbitrary numbers, the numbers are same as of the signature. With the help of the private keys and wallet addresses, some of the attackers were able to crack down some of the wallets. Once the wallets were cracked, stealing the cryptocurrencies became possible.

The problem is that the vulnerability is not just limited to Bitcoin (BTC). The vulnerability is also for Ripple (XRP) and Ethereum (ETH). It indicates that thousands of users are at risk of their cryptocurrency Holdings getting stolen. That is why cryptocurrency wallets are not as sturdy as it seemed. The vulnerability also exposes boldly executed code. If the developers were able to integrate the hardware with software perfectly, the vulnerability would not have existed.

Thus, the digital signature system is not as fool-proof as thought earlier. There is a risk because attackers can calculate the digital signatures and the associated numbers without any problem and steal the cryptocurrencies from the wallets.

Related Posts: