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Crypto Wallet: Weakest link in the Security of Blockchain Ecosystem
Messenger-Style Crypto Wallet with Banking-grade Security
Seokgu Yun, Founder and CTO
Financial Inclusion
Blockchain Ecosystem
1. Blockchain + Consensus Protocol : O
2. Cryptocurrency Wallet : X
3. Smart Contract : X
4. Exchange : X
1. Blockchain Security
Block Time in Blockchain: Trade-off between security and performance
Blockchain = Distributed Ledger : Immutable Database with the hash of previous block
Block time : Time required to achieve Consensus (Time to perform Consensus Protocol)
Longer block time ~
Larger consensus
nodes ~ stronger
immutability
1. Blockchain Security
Hybrid Approach: off-chain vs. on-chain
! Banking-grade Security: High Performance
! Blockchain Security: Stronger Security
2. Wallet Security -
Cryptocurrency Address
2. Wallet Security : CoinDash Hack ($10M)
SovereignWallet
Multi-Cryptocurrency Wallet
with Machine Learning Security
Secure wallet
— Application Self-Protection
— Machine-Learning User Authentication
Chat-Style Cryptocurrency Transfer
— Transfer Cryptocurrency to Chat Friend
— Transfer Cryptocurrency with ChatBot
2. Wallet Security : Parity Wallet, MyEtherWallet Hack
! MultiSig Bug - $32M
! Library Contract Bug -
$155M
! DNS(Domain Name
System) Hack - $150K
SovereignWallet Security Features
Application self-protection
WSS channel encryption
Screen capture prevention
Message withdrawal & Auto deletion
End-to-end encryption
End-to-End Encryption
Machine-Learning User Auth.
Application Self-Protection
WSS channel encryption
Machine-Learning SecurityZero-knowledge Protocol
Message Withdrawal
Cryptocurrency Wallet Comparisons
Very Secure but difficult to use
Hardware Wallet
Very Easy-to-Use
and Secure
SovereignWallet
Relatively Easy-to-use and Secure
Mobile Wallet
Easy-to-use but Insecure
Web-based Wallet
Usability
Security
3. Smart Contract Security: DAO Hack
3. Smart Contract Security:
Formal Verification, Provable Security
PLUTUS INTRODUCTION
Plutus is a strictly typed pure functional programming
language used for defining smart contracts in
Cardamon. The syntax is fairly Haskell-like, but unlike
Haskell, the language is eagerly evaluated.
4. Cryptocurrency Exchange Security:
Exchange Hacks - Single Point of Failure
User’s private key is encrypted with user’s data in user’s own memory
4. Exchange Security: Zero-Knowledge Protocol
! No Single Point of Failure
! Key Recovery upon
device lost or failure
4. Exchange Security : Side-chain / Layered Blockchain
Two-way peg with Smart Contract
Plasma Contract for root-
blockchain confirmation
SovereignWallet : Mobile Cryptocurrency Wallet
! Smart Contract-based Smart Wallet
! Identity-based Transfer
! Zero-Knowledge Protocol
! Mnemonic Sequence
! Application Self-Protection
! Machine-Learning Security
MUI Token : Utility Token for SovereignWallet
! ERC20 (Smart Contract-based Programmable Money)
! Algorithmic Central Bank (Smart Contract - based)
! Value-proof, Stable token
! MUI Bot (Experimental)
SovereignWallet : Smart Wallet & MUI ACB
MUI Token Bot
MUI Token
Trading Bot
SovereignWallet
User
Reserve
Trader, Oracle
of MUI
Token Swap
MUI ICO
MUI Trading
Agent
SovereignWallet DEX - Sidechain with Provably Secure
Smart Contract
DEX on Private
Blockchain
SovereignWallet
DEX
Layered Blockchain (Sidechain)
Provably Secure Smart Contract
High Performance
Singapore Korea IT Symposium 2018 - SovereignWallet Network

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Singapore Korea IT Symposium 2018 - SovereignWallet Network

  • 1. Crypto Wallet: Weakest link in the Security of Blockchain Ecosystem Messenger-Style Crypto Wallet with Banking-grade Security Seokgu Yun, Founder and CTO
  • 3. Blockchain Ecosystem 1. Blockchain + Consensus Protocol : O 2. Cryptocurrency Wallet : X 3. Smart Contract : X 4. Exchange : X
  • 4. 1. Blockchain Security Block Time in Blockchain: Trade-off between security and performance Blockchain = Distributed Ledger : Immutable Database with the hash of previous block Block time : Time required to achieve Consensus (Time to perform Consensus Protocol) Longer block time ~ Larger consensus nodes ~ stronger immutability
  • 5. 1. Blockchain Security Hybrid Approach: off-chain vs. on-chain ! Banking-grade Security: High Performance ! Blockchain Security: Stronger Security
  • 6. 2. Wallet Security - Cryptocurrency Address
  • 7. 2. Wallet Security : CoinDash Hack ($10M)
  • 8. SovereignWallet Multi-Cryptocurrency Wallet with Machine Learning Security Secure wallet — Application Self-Protection — Machine-Learning User Authentication Chat-Style Cryptocurrency Transfer — Transfer Cryptocurrency to Chat Friend — Transfer Cryptocurrency with ChatBot
  • 9. 2. Wallet Security : Parity Wallet, MyEtherWallet Hack ! MultiSig Bug - $32M ! Library Contract Bug - $155M ! DNS(Domain Name System) Hack - $150K
  • 10. SovereignWallet Security Features Application self-protection WSS channel encryption Screen capture prevention Message withdrawal & Auto deletion End-to-end encryption End-to-End Encryption Machine-Learning User Auth. Application Self-Protection WSS channel encryption Machine-Learning SecurityZero-knowledge Protocol Message Withdrawal
  • 11. Cryptocurrency Wallet Comparisons Very Secure but difficult to use Hardware Wallet Very Easy-to-Use and Secure SovereignWallet Relatively Easy-to-use and Secure Mobile Wallet Easy-to-use but Insecure Web-based Wallet Usability Security
  • 12. 3. Smart Contract Security: DAO Hack
  • 13. 3. Smart Contract Security: Formal Verification, Provable Security PLUTUS INTRODUCTION Plutus is a strictly typed pure functional programming language used for defining smart contracts in Cardamon. The syntax is fairly Haskell-like, but unlike Haskell, the language is eagerly evaluated.
  • 14. 4. Cryptocurrency Exchange Security: Exchange Hacks - Single Point of Failure
  • 15. User’s private key is encrypted with user’s data in user’s own memory 4. Exchange Security: Zero-Knowledge Protocol ! No Single Point of Failure ! Key Recovery upon device lost or failure
  • 16. 4. Exchange Security : Side-chain / Layered Blockchain Two-way peg with Smart Contract Plasma Contract for root- blockchain confirmation
  • 17. SovereignWallet : Mobile Cryptocurrency Wallet ! Smart Contract-based Smart Wallet ! Identity-based Transfer ! Zero-Knowledge Protocol ! Mnemonic Sequence ! Application Self-Protection ! Machine-Learning Security MUI Token : Utility Token for SovereignWallet ! ERC20 (Smart Contract-based Programmable Money) ! Algorithmic Central Bank (Smart Contract - based) ! Value-proof, Stable token ! MUI Bot (Experimental) SovereignWallet : Smart Wallet & MUI ACB
  • 18. MUI Token Bot MUI Token Trading Bot SovereignWallet User Reserve Trader, Oracle of MUI Token Swap MUI ICO MUI Trading Agent
  • 19. SovereignWallet DEX - Sidechain with Provably Secure Smart Contract DEX on Private Blockchain SovereignWallet DEX Layered Blockchain (Sidechain) Provably Secure Smart Contract High Performance