Blockstream launches a new hosting system, while Adam Back advocates for simpler security solutions to reduce risks.
Blockstream has collaborated with the French technology group Thales to develop a new digital asset custody solution for institutions. Blockstream, the founder and CEO, as well as a cryptographer, Adam Back, advocates for a simpler and offline security system to protect Bitcoin from increasingly complex cyberattacks.
The plan was announced on Friday, combining the hardware security module of Thales ( HSM ) with the Secure Multi - Party Computation ( Secure-MPC ) technology of Blockstream. According to the company, this enables institutions to authorize transactions while keeping sensitive cryptographic operations within dedicated secure hardware.
Blockstream indicates that, unlike the traditional MPC implementation which may perform some of the signing processes outside of dedicated security hardware, this architecture completes the entire signing protocol within the protected environment of Thales HSM.
Blockstream, co-founder and also CEO Adam Back, is a pioneering cryptographer. His Hashcash system laid the foundation for Bitcoin's proof-of-work mechanism. Back stated that traditional MPC protocols are often too complex and require excessive communication between devices, making them unsuitable for completely offline cold storage.
“When people talk about MPC, they are referring to some very complex and sophisticated protocols that are difficult to secure, and they also have a high degree of interactivity. Therefore, you really can’t use them for cold storage scenarios,” said Back.
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Adam Back advocates for a simpler Bitcoin hosting method
Back mentioned the $6.3 billion hacker attack on Binance as an example of the risks faced by internet-connected hosting infrastructure. He believes that keeping signing devices offline helps to prevent unauthorized access.
According to Anbin's investigation, the attackers infiltrated employees' devices and obtained credentials, thereby gaining access to the exchange's wallet signature infrastructure.
"If you connect your device to the internet, even through a firewall or similar measures, there is still a risk of unauthorized access. Hackers could gain access to the network and obtain login credentials they shouldn't have, and so on."
He also stated that artificial intelligence may make existing security challenges more difficult to manage, especially because it could help attackers identify subtle flaws in the implementation of complex MPC.
“AI can help attackers identify small implementation errors and such issues, which may not be obvious,” he said.
When asked whether the broader hosting industry would adopt similar offline security models, Back expressed hope that it would. He believes that institutions should "adapt to the environment" by transferring assets to cold storage in order to reduce the risk of encountering AI assisted attacks.
"Complexity is the enemy of security. Going back to the basics is the answer. You know, just put it on hold," Back added.
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